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 could deliver good returns and two that could be in trouble.
Two Stocks to Sell:
Expedia (EXPE)
Market Cap: $27.52 billion
Originally founded as a part of Microsoft, Expedia (NASDAQ: EXPE) is one of the world’s leading online travel agencies.
Why Are We Cautious About EXPE?
- Decision to emphasize platform growth over monetization has contributed to 1.5% annual declines in its average revenue per booking
- Estimated sales growth of 5.3% for the next 12 months implies demand will slow from its three-year trend
- Expensive marketing campaigns hurt its profitability and make us wonder what would happen if it let up on the gas
Expedia is trading at $222.35 per share, or 8.9x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than EXPE.
RTX (RTX)
Market Cap: $211.8 billion
Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries.
Why Are We Wary of RTX?
- Estimated sales growth of 4.8% for the next 12 months implies demand will slow from its two-year trend
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 4.8% annually
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $158.70 per share, RTX trades at 25.6x forward P/E. To fully understand why you should be careful with RTX, check out our full research report (it’s free).
One Stock to Watch:
Match Group (MTCH)
Market Cap: $9.27 billion
Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ: MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.
Why Could MTCH Be a Winner?
- Customers are spending more money on its platform as its average revenue per user has increased by 8.9% annually over the last two years
- Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 36.3%
- Strong free cash flow margin of 26.4% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
Match Group’s stock price of $38.52 implies a valuation ratio of 7.8x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
