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.
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:
eBay (EBAY)
Market Cap: $40.25 billion
Originally known as the first online auction site, eBay (NASDAQ: EBAY) is one of the world’s largest online marketplaces.
Why Does EBAY Give Us Pause?
- Competition may be pulling attention away from its platform as its 1.2% average growth in active buyers was choppy
- Anticipated sales growth of 8.4% for the next year implies demand will be shaky
- Expenses have increased as a percentage of revenue over the last few years as its EBITDA margin fell by 3.2 percentage points
eBay is trading at $90.02 per share, or 12x forward EV/EBITDA. Check out our free in-depth research report to learn more about why EBAY doesn’t pass our bar.
Molson Coors (TAP)
Market Cap: $7.90 billion
Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE: TAP) is a global brewing giant with a rich history dating back more than two centuries.
Why Should You Sell TAP?
- Shrinking unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 36.1 percentage points
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up
At $41.74 per share, Molson Coors trades at 8.7x forward P/E. To fully understand why you should be careful with TAP, check out our full research report (it’s free).
One Stock to Buy:
Progressive (PGR)
Market Cap: $120.2 billion
Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE: PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.
Why Should You Buy PGR?
- Market penetration was impressive this cycle as its net premiums earned expanded by 18% annually over the last two years
- Additional sales over the last two years increased its profitability as the 72.1% annual growth in its earnings per share outpaced its revenue
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Progressive’s stock price of $208.22 implies a valuation ratio of 3.2x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
