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1 S&P 500 Stock with Solid Fundamentals and 2 We Avoid

KEYS Cover Image

The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.

Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. That said, here is one S&P 500 stock that could deliver good returns and two that may struggle.

Two Stocks to Sell:

Keysight (KEYS)

Market Cap: $49.95 billion

Spun off from Hewlett-Packard in 2014, Keysight (NYSE: KEYS) offers electronic measurement products for use in various sectors.

Why Are We Cautious About KEYS?

  1. 3.1% annual revenue growth over the last two years was slower than its industrials peers
  2. Earnings per share have contracted by 2.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $290.00 per share, Keysight trades at 31.7x forward P/E. Dive into our free research report to see why there are better opportunities than KEYS.

Cincinnati Financial (CINF)

Market Cap: $24.66 billion

Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ: CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states.

Why Do We Think Twice About CINF?

  1. Earnings per share lagged its peers over the last two years as they only grew by 14.7% annually
  2. Estimated book value per share growth of 4.3% for the next 12 months implies profitability will slow from its two-year trend

Cincinnati Financial’s stock price of $158.42 implies a valuation ratio of 1.5x forward P/B. Read our free research report to see why you should think twice about including CINF in your portfolio.

One Stock to Watch:

ExxonMobil (XOM)

Market Cap: $669.6 billion

One of the successor companies to John D. Rockefeller's Standard Oil monopoly that was broken up in 1911, ExxonMobil (NYSE: XOM) explores for and produces crude oil and natural gas, refines and sells petroleum products, and manufactures petrochemicals.

Why Do We Like XOM?

  1. Massive revenue base of $332.2 billion makes it a household name that influences purchasing decisions
  2. EBITDA profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
  3. Free cash flow margin of 10.6% is higher than many in the industry, giving it breathing room and optionality

ExxonMobil is trading at $160.45 per share, or 17.7x 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

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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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