The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. That said, here are two S&P 500 stocks that could deliver good returns and one that may struggle.
One Stock to Sell:
Hartford (HIG)
Market Cap: $38.23 billion
Recognizable by its iconic stag logo that dates back to 1810, The Hartford (NYSE: HIG) provides property and casualty insurance, group benefits, and investment products to individuals and businesses across the United States.
Why Do We Think Twice About HIG?
- Scale presents growth limitations compared to smaller competitors, evidenced by its below-average 5.2% annualized growth in net premiums earned for the last two years
- Estimated sales growth of 2.6% for the next 12 months implies demand will slow from its two-year trend
- Scale is a double-edged sword because it limits the firm’s capital growth potential compared to its smaller competitors, as reflected in its below-average annual book value per share increases of 6.7% for the last five years
Hartford’s stock price of $141.14 implies a valuation ratio of 1.9x forward P/B. Read our free research report to see why you should think twice about including HIG in your portfolio.
Two Stocks to Buy:
Eli Lilly (LLY)
Market Cap: $1.10 trillion
Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE: LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.
Why Will LLY Beat the Market?
- Impressive 43.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Adjusted operating profits increased over the last two years as the company gained some leverage on its fixed costs and became more efficient
- Share repurchases over the last five years enabled its annual earnings per share growth of 31.4% to outpace its revenue gains
Eli Lilly is trading at $1,230 per share, or 29x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Synchrony Financial (SYF)
Market Cap: $25.44 billion
Powering over 73 million active accounts and partnerships with major brands like Amazon, PayPal, and Lowe's, Synchrony Financial (NYSE: SYF) provides credit cards, installment loans, and banking products through partnerships with retailers, healthcare providers, and digital platforms.
Why Are We Bullish on SYF?
- Earnings per share grew by 35.5% annually over the last two years and trumped its peers
- Annual tangible book value per share growth of 14.5% over the past five years was outstanding, reflecting strong capital accumulation this cycle
- ROE punches in at 21.5%, illustrating management’s expertise in identifying profitable investments
At $78.75 per share, Synchrony Financial trades at 8.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
