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.

Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. 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:

Tyson Foods (TSN)

Market Cap: $19.72 billion

Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.

Why Do We Think TSN Will Underperform?

1. Sizable revenue base leads to growth challenges as its 1.5% annual revenue increases over the last three years fell short of other consumer staples companies
2. Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 7% that must be offset through higher volumes
3. Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term

Tyson Foods’s stock price of $55.40 implies a valuation ratio of 14.8x forward P/E. Check out our free in-depth research report to learn more about why TSN doesn’t pass our bar.

Packaging Corporation of America (PKG)

Market Cap: $17.26 billion

Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.

Why Are We Out on PKG?

1. Annual revenue growth of 1.4% over the last two years was below our standards for the industrials sector
2. High input costs result in an inferior gross margin of 22.7% that must be offset through higher volumes
3. Earnings per share have contracted by 4.2% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance

At $194 per share, Packaging Corporation of America trades at 11.8x forward EV-to-EBITDA. If you’re considering PKG for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Applied Materials (AMAT)

Market Cap: $138.7 billion

Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ: AMAT) is the largest provider of semiconductor wafer fabrication equipment.

Why Are We Positive On AMAT?

1. Annual revenue growth of 12.7% over the last five years was superb and indicates its market share increased during this cycle
2. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 29.3%, and its profits increased over the last five years as it scaled
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

Applied Materials is trading at $172.73 per share, or 18.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 Tecnoglass (+1,754% 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.