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.

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 is leading the market forward and two that could be in trouble.

Two Stocks to Sell:

Dayforce (DAY)

Market Cap: $9.34 billion

Founded in 1992 as Ceridian, an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Dayforce (NYSE: DAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses.

Why Are We Cautious About DAY?

1. 18.7% annual revenue growth over the last three years was slower than its software peers
2. Gross margin of 50.3% is way below its competitors, leaving less money to invest in areas like marketing and R&D
3. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 3.4 percentage points

Dayforce is trading at $58.39 per share, or 4.8x forward price-to-sales. Check out our free in-depth research report to learn more about why DAY doesn’t pass our bar.

PNC Financial Services Group (PNC)

Market Cap: $77.53 billion

Tracing its roots back to 1852 when Pittsburgh's industrial boom demanded stronger financial institutions, PNC (NYSE: PNC) is a diversified financial institution that provides retail banking, corporate banking, and asset management services through a coast-to-coast branch network.

Why Does PNC Fall Short?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual net interest income increases of 6.9% for the last five years
2. Projected tangible book value per share decline of 5.3% for the next 12 months points to tough credit quality challenges ahead
3. Annual interest expenses are high relative to its profits, increasing the probability of its failure to meet certain borrowing obligations

PNC Financial Services Group’s stock price of $198.78 implies a valuation ratio of 1.4x forward P/B. If you’re considering PNC for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Booking (BKNG)

Market Cap: $187.9 billion

Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.

Why Is BKNG a Good Business?

1. Has the opportunity to boost monetization through new features and premium offerings as its room nights booked have grown by 9.7% annually over the last two years
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 51.8% exceeded its revenue gains over the last three years
3. Strong free cash flow margin of 33.1% enables it to reinvest or return capital consistently

At $5,784 per share, Booking trades at 20.7x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2024 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 5 Growth Stocks for this month. 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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