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.
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:
Viatris (VTRS)
Market Cap: $12 billion
Created through the 2020 merger of Mylan and Pfizer's Upjohn division, Viatris (NASDAQ: VTRS) is a healthcare company that develops, manufactures, and distributes branded and generic medicines across more than 165 countries worldwide.
Why Do We Steer Clear of VTRS?
- Annual sales declines of 4.9% for the past two years show its products and services struggled to connect with the market during this cycle
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 12% annually
- Negative returns on capital show management lost money while trying to expand the business, and its falling returns suggest its earlier profit pools are drying up
Viatris is trading at $10.26 per share, or 4.4x forward P/E. Check out our free in-depth research report to learn more about why VTRS doesn’t pass our bar.
AIG (AIG)
Market Cap: $43.43 billion
With roots dating back to 1919 when it began as a small insurance agency in Shanghai, China, AIG (NYSE: AIG) is a global insurance organization that provides commercial and personal insurance solutions to businesses and individuals across more than 200 countries.
Why Do We Avoid AIG?
- Net premiums earned contracted by 6.6% annually over the last five years, showing unfavorable market dynamics this cycle
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 1% annually
- Book value per share stagnated over the last five years, limiting its ability to leverage its balance sheet to make additional investments
At $78.39 per share, AIG trades at 1x forward P/B. Read our free research report to see why you should think twice about including AIG in your portfolio.
One Stock to Buy:
Axon (AXON)
Market Cap: $59.27 billion
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Is AXON a Good Business?
- Products are seeing elevated demand as its unit sales averaged 28.8% growth over the past two years
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 46.5% annually, topping its revenue gains
- Improving returns on capital suggest its past investments are beginning to deliver value
Axon’s stock price of $754.60 implies a valuation ratio of 113.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
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 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
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