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 is one S&P 500 stock that is positioned to outperform and two best left off your watchlist.
Two Stocks to Sell:
Procter & Gamble (PG)
Market Cap: $334.3 billion
Founded by candle maker William Procter and soap maker James Gamble, Procter & Gamble (NYSE:PG) is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.
Why Is PG Not Exciting?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Anticipated sales growth of 2% for the next year implies demand will be shaky
- Static operating margin over the last year shows it couldn’t become more efficient
Procter & Gamble is trading at $144.06 per share, or 20.8x forward P/E. Dive into our free research report to see why there are better opportunities than PG.
Avery Dennison (AVY)
Market Cap: $13.01 billion
Founded as Kum Kleen Products, Avery Dennison (NYSE:AVY) is a manufacturer of adhesive materials, display graphics, and packaging products, serving various industries.
Why Does AVY Give Us Pause?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Estimated sales growth of 2.3% for the next 12 months is soft and implies weaker demand
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 2.9% annually
Avery Dennison’s stock price of $171.11 implies a valuation ratio of 16.3x forward P/E. To fully understand why you should be careful with AVY, check out our full research report (it’s free).
One Stock to Buy:
Bloom Energy (BE)
Market Cap: $81.75 billion
Working in stealth mode for eight years, Bloom Energy (NYSE:BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.
What Makes BE Stand Out?
- Annual revenue growth of 53.1% over the last two years was superb and indicates its market share increased during this cycle
- Free cash flow turned positive over the last five years, showing the company has crossed a key inflection point
- Historical investments are beginning to pay off as its returns on capital are growing
At $278.70 per share, Bloom Energy trades at 78.1x 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
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.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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.