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.
Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. That said, here is one S&P 500 stock that is leading the market forward and two best left off your watchlist.
Two stocks to sell:
Globe Life (GL)
Market cap: $12.33 billion
With roots dating back to 1900 and a rebranding from Torchmark Corporation in 2019, Globe Life (NYSE: GL) is an insurance holding company that offers life insurance, supplemental health insurance, and annuity products through various distribution channels.
Why Is GL Not Exciting?
- Sluggish 4.9% annualized growth in net premiums earned over the last five years indicates the firm trailed its insurance peers
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 12.6% annually
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 1.3% annually over the last five years
At $160.17 per share, Globe Life trades at 1.8x forward P/B. If you’re considering GL for your portfolio, see our FREE research report to learn more.
U.S. Bancorp (USB)
Market cap: $94.49 billion
With roots dating back to 1863 and a presence across 26 states primarily in the Midwest and West, U.S. Bancorp (NYSE: USB) is one of America's largest banks providing lending, deposit services, wealth management, payment processing, and merchant services to individuals and businesses.
Why Are We Hesitant About USB?
- Annual net interest income growth of 6.8% over the last five years lagged behind its banking peers as its large revenue base made it difficult to generate incremental demand
- Net interest margin of 2.8% reflects its high servicing and capital costs
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
U.S. Bancorp’s stock price of $61.02 implies a valuation ratio of 1.5x forward P/B. Check out our free in-depth research report to learn more about why USB doesn’t pass our bar.
One stock to watch:
Booking (BKNG)
Market cap: $113 billion
Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.
Why Does BKNG Stand Out?
- Platform is difficult to replicate at scale and results in a best-in-class gross margin of 87%
- Excellent EBITDA margin of 36.4% highlights the efficiency of its business model, and its rise over the last few years was fueled by some leverage on its fixed costs
- Robust free cash flow margin of 35.3% gives it many options for capital deployment
Booking is trading at $152.47 per share, or 10.4x forward EV/EBITDA. 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 Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
