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. Keeping that in mind, here are two S&P 500 stocks that could deliver good returns and one best left off your watchlist.
One Stock to Sell:
Archer-Daniels-Midland (ADM)
Market Cap: $33.65 billion
Transforming crops from the world's most productive agricultural regions into everyday essentials, Archer-Daniels-Midland (NYSE: ADM) processes and transports agricultural commodities like grains and oilseeds while manufacturing ingredients for food, beverages, feed, and industrial applications.
Why Does ADM Give Us Pause?
- Products have few die-hard fans as sales have declined by 7.5% annually over the last three years
- Gross margin of 6.5% is an output of its commoditized products
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
Archer-Daniels-Midland is trading at $70.16 per share, or 16.9x forward P/E. Read our free research report to see why you should think twice about including ADM in your portfolio.
Two Stocks to Watch:
Keurig Dr Pepper (KDP)
Market Cap: $35.38 billion
Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ: KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.
Why Does KDP Stand Out?
- Unit sales averaged 4.4% growth over the past two years and imply healthy demand for its products
- Exciting sales outlook for the upcoming 12 months calls for 57.3% growth, an acceleration from its three-year trend
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
At $26.19 per share, Keurig Dr Pepper trades at 11.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
AbbVie (ABBV)
Market Cap: $365.2 billion
Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE: ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.
Why Do We Like ABBV?
- Enormous revenue base of $61.16 billion gives it economies of scale and advantages over new entrants due to the industry’s regulatory complexity
- Strong free cash flow margin of 36.3% enables it to reinvest or return capital consistently
- Industry-leading 17% return on capital demonstrates management’s skill in finding high-return investments
AbbVie’s stock price of $206.10 implies a valuation ratio of 14.5x forward P/E. Is now the time to initiate a position? See for yourself 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 meeting 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 (+1,326% 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.
