The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning. Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.
Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. Keeping that in mind, here is one S&P 500 stock that is leading the market forward and two that could be in trouble.
Two Stocks to Sell:
onsemi (ON)
Market Cap: $20.35 billion
Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ: ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.
Why Does ON Fall Short?
- Sales tumbled by 12.5% annually over the last two years, showing market trends are working against its favor during this cycle
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Gross margin of 42.5% reflects its high production costs
onsemi’s stock price of $49.77 implies a valuation ratio of 19.1x forward P/E. If you’re considering ON for your portfolio, see our FREE research report to learn more.
NVR (NVR)
Market Cap: $22.72 billion
Known for its unique land acquisition strategy, NVR (NYSE: NVR) is a respected homebuilder and mortgage company in the United States.
Why Does NVR Give Us Pause?
- Sales pipeline suggests its future revenue growth may not meet our standards as its average backlog growth of 1.3% for the past two years was weak
- Sales are projected to tank by 6.9% over the next 12 months as demand evaporates
- Diminishing returns on capital suggest its earlier profit pools are drying up
NVR is trading at $7,907 per share, or 18.5x forward P/E. Dive into our free research report to see why there are better opportunities than NVR.
One Stock to Buy:
AMD (AMD)
Market Cap: $261.7 billion
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ: AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Do We Love AMD?
- Annual revenue growth of 31.1% over the last five years was superb and indicates its market share increased during this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 22.4%
- Earnings per share have massively outperformed its peers over the last five years, increasing by 32% annually
At $160.58 per share, AMD trades at 32.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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-micro-cap company Kadant (+351% 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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