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.
Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. That said, here is one S&P 500 stock that could deliver good returns and two that may struggle.
Two Stocks to Sell:
Keysight (KEYS)
Market Cap: $49.95 billion
Spun off from Hewlett-Packard in 2014, Keysight (NYSE:KEYS) offers electronic measurement products for use in various sectors.
Why Are We Cautious About KEYS?
- 3.1% annual revenue growth over the last two years was slower than its industrials peers
- Earnings per share have contracted by 2.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $290.00 per share, Keysight trades at 31.7x forward P/E. Dive into our free research report to see why there are better opportunities than KEYS.
Cincinnati Financial (CINF)
Market Cap: $24.66 billion
Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ:CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states.
Why Do We Think Twice About CINF?
- Earnings per share lagged its peers over the last two years as they only grew by 14.7% annually
- Estimated book value per share growth of 4.3% for the next 12 months implies profitability will slow from its two-year trend
Cincinnati Financial’s stock price of $158.42 implies a valuation ratio of 1.5x forward P/B. Read our free research report to see why you should think twice about including CINF in your portfolio.
One Stock to Watch:
ExxonMobil (XOM)
Market Cap: $669.6 billion
One of the successor companies to John D. Rockefeller's Standard Oil monopoly that was broken up in 1911, ExxonMobil (NYSE:XOM) explores for and produces crude oil and natural gas, refines and sells petroleum products, and manufactures petrochemicals.
Why Do We Like XOM?
- Massive revenue base of $332.2 billion makes it a household name that influences purchasing decisions
- EBITDA profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Free cash flow margin of 10.6% is higher than many in the industry, giving it breathing room and optionality
ExxonMobil is trading at $160.45 per share, or 17.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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.