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. Keeping that in mind, here are two S&P 500 stocks positioned to outperform and one that could be in trouble.
One Stock to Sell:
News Corp (NWSA)
Market Cap: $15.02 billion
Established in 2013 after a restructuring, News Corp (NASDAQ: NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.
Why Are We Out on NWSA?
- Sales were flat over the last five years, indicating it’s failed to expand its business
- Poor free cash flow margin of 7.1% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Stagnant returns on capital show management has failed to improve the company’s business quality
At $26.28 per share, News Corp trades at 22.1x forward P/E. Check out our free in-depth research report to learn more about why NWSA doesn’t pass our bar.
Two Stocks to Buy:
Howmet (HWM)
Market Cap: $105.9 billion
Inventing the first forged aluminum truck wheel, Howmet (NYSE: HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Why Will HWM Outperform?
- Market share has increased this cycle as its 12.3% annual revenue growth over the last five years was exceptional
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 43.7% exceeded its revenue gains over the last two years
- Free cash flow margin expanded by 13.2 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Howmet is trading at $266.10 per share, or 47.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Moody's (MCO)
Market Cap: $77.18 billion
Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE: MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.
Why Do We Love MCO?
- Solid 12.4% annual revenue growth over the last two years indicates its offerings solve complex business issues
- Share buybacks catapulted its annual earnings per share growth to 22.5%, which outperformed its revenue gains over the last two years
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Moody’s stock price of $442.32 implies a valuation ratio of 26.3x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
