1 S&P 500 Stock Worth Investigating and 2 Facing Headwinds

September 15, 2025 at 00:32 AM EDT

CCL Cover Image

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 could deliver good returns and two that may struggle.

Two Stocks to Sell:

Carnival (CCL)

Market Cap: $41.03 billion

Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE: CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.

Why Are We Hesitant About CCL?

Sizable revenue base leads to growth challenges as its 9% annual revenue increases over the last five years fell short of other consumer discretionary companies
Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its two-year trend
Push for growth has led to negative returns on capital, signaling value destruction

At $31.54 per share, Carnival trades at 15.8x forward P/E. Read our free research report to see why you should think twice about including CCL in your portfolio.

Jacobs Solutions (J)

Market Cap: $17.54 billion

With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE: J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions.

Why Do We Avoid J?

Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.5% annually over the last five years
Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 4% annually, worse than its revenue
Below-average returns on capital indicate management struggled to find compelling investment opportunities

Jacobs Solutions is trading at $146.70 per share, or 21.9x forward P/E. Dive into our free research report to see why there are better opportunities than J.

One Stock to Watch:

Zoetis (ZTS)

Market Cap: $65.68 billion

Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE: ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.

Why Are We Positive On ZTS?

Constant currency growth averaged 8.6% over the past two years, showing it can expand globally regardless of the macroeconomic environment
Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

Zoetis’s stock price of $149.05 implies a valuation ratio of 22.9x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

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 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-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

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