The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning. Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. That said, here is one S&P 500 stock that is positioned to outperform and two that may struggle.
Two Stocks to Sell:
FOX (FOXA)
Market Cap: $25.3 billion
Founded in 1915, Fox (NASDAQ:FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.
Why Should You Sell FOXA?
- Sizable revenue base leads to growth challenges as its 4.5% annual revenue increases over the last two years fell short of other consumer discretionary companies
- Forecasted revenue decline of 2.6% for the upcoming 12 months implies demand will fall off a cliff
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 4.5 percentage points
At $59.37 per share, FOX trades at 13.9x forward P/E. If you’re considering FOXA for your portfolio, see our FREE research report to learn more.
MSCI (MSCI)
Market Cap: $44.47 billion
Originally known as Morgan Stanley Capital International before becoming independent in 2007, MSCI (NYSE:MSCI) provides critical decision support tools, indexes, and analytics that help global investors understand risk and return factors and build more effective investment portfolios.
Why Is MSCI Not Exciting?
- Negative return on equity shows management lost money while trying to expand the business
MSCI’s stock price of $575.10 implies a valuation ratio of 31.9x forward P/E. To fully understand why you should be careful with MSCI, check out our full research report (it’s free).
One Stock to Buy:
GE Aerospace (GE)
Market Cap: $282.6 billion
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
Why Do We Love GE?
- Market share has increased this cycle as its 13.9% annual revenue growth over the last two years was exceptional
- GE is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
- Rising returns on capital show management is finding more attractive investment opportunities
GE Aerospace is trading at $267.50 per share, or 45.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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