While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. That said, here is one S&P 500 stock that could deliver good returns and two that could be in trouble.
Two Stocks to Sell:
Clorox (CLX)
Market Cap: $15.05 billion
Founded in 1913 with bleach as the sole product offering, Clorox (NYSE: CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.
Why Are We Hesitant About CLX?
- Products fail to spark excitement with consumers, as seen in its flat sales over the last three years
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Estimated sales decline of 8.3% for the next 12 months implies an even more challenging demand environment
Clorox is trading at $123.15 per share, or 19.4x forward P/E. Dive into our free research report to see why there are better opportunities than CLX.
Norwegian Cruise Line (NCLH)
Market Cap: $11.49 billion
With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE: NCLH) is a premier global cruise company.
Why Are We Cautious About NCLH?
- Number of passenger cruise days has disappointed over the past two years, indicating weak demand for its offerings
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Norwegian Cruise Line’s stock price of $25.25 implies a valuation ratio of 11.3x forward P/E. Read our free research report to see why you should think twice about including NCLH in your portfolio.
One Stock to Watch:
Centene (CNC)
Market Cap: $17.02 billion
Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE: CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.
Why Are We Fans of CNC?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 14.2% annual sales growth over the last five years
- Massive revenue base of $178.2 billion gives it meaningful leverage when negotiating reimbursement rates
- Rising returns on capital show the company is starting to reap the benefits of its past investments
At $34.67 per share, Centene trades at 9.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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