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. Keeping that in mind, here is one S&P 500 stock that is leading the market forward and two best left off your watchlist.

Two Stocks to Sell:

GoDaddy (GDDY)

Market Cap: $20.22 billion

Known for its memorable Super Bowl commercials that put it on the map, GoDaddy (NYSE: GDDY) is a domain registrar and web services provider that helps entrepreneurs establish an online presence through domain registration, website building, hosting, and e-commerce tools.

Why Is GDDY Not Exciting?

1. Sales pipeline concerns usas its bookings growth averaged a subpar 8.1% over the last year due to intensifying competition
2. Projected sales growth of 6.9% for the next 12 months suggests sluggish demand
3. High servicing costs result in a relatively inferior gross margin of 64% that must be offset through increased usage

GoDaddy’s stock price of $145.90 implies a valuation ratio of 4.1x forward price-to-sales. Read our free research report to see why you should think twice about including GDDY in your portfolio.

Hormel Foods (HRL)

Market Cap: $15.9 billion

Best known for its SPAM brand, Hormel (NYSE: HRL) is a packaged foods company with products that span meat, poultry, shelf-stable foods, and spreads.

Why Are We Wary of HRL?

1. Declining unit sales over the past two years suggest it might have to lower prices to stimulate growth
2. Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 16.7%
3. Sales were less profitable over the last three years as its earnings per share fell by 6.5% annually, worse than its revenue declines

Hormel Foods is trading at $28.91 per share, or 16.7x forward P/E. Check out our free in-depth research report to learn more about why HRL doesn’t pass our bar.

One Stock to Watch:

Humana (HUM)

Market Cap: $35.42 billion

With over 80% of its revenue derived from federal government contracts, Humana (NYSE: HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.

Why Do We Like HUM?

1. Annual revenue growth of 11.8% over the last five years was above the sector average and underscores its products and services value to customers
2. Massive revenue base of $123.1 billion gives it meaningful leverage when negotiating reimbursement rates
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

At $295.75 per share, Humana trades at 19.8x 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

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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 Exlservice (+354% 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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