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:
General Motors (GM)
Market Cap: $71.59 billion
Founded in 1908 by William C. Durant, General Motors (NYSE: GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.
Why Are We Hesitant About GM?
- Annual sales growth of 2.8% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 12.1%
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 5 percentage points
General Motors’s stock price of $79.22 implies a valuation ratio of 6.6x forward P/E. Dive into our free research report to see why there are better opportunities than GM.
Bio-Techne (TECH)
Market Cap: $8.22 billion
With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ: TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.
Why Do We Avoid TECH?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Subscale operations are evident in its revenue base of $1.21 billion, meaning it has fewer distribution channels than its larger rivals
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Bio-Techne is trading at $52.25 per share, or 27.1x forward P/E. Read our free research report to see why you should think twice about including TECH in your portfolio.
One Stock to Buy:
Corpay (CPAY)
Market Cap: $22.81 billion
Formerly known as FLEETCOR until its 2024 rebrand, Corpay (NYSE: CPAY) provides specialized payment solutions for businesses to manage vehicle expenses, corporate payments, and lodging costs with enhanced control and reporting capabilities.
Why Is CPAY a Good Business?
- Annual revenue growth of 15.4% over the past five years was outstanding, reflecting market share gains this cycle
- Earnings per share have outperformed the peer group average over the last five years, increasing by 15.8% annually
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $349.01 per share, Corpay trades at 12.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
