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.
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 positioned to outperform and two that could be in trouble.
Two Stocks to Sell:
Expedia (EXPE)
Market Cap: $35.18 billion
Originally founded as a part of Microsoft, Expedia (NASDAQ: EXPE) is one of the world’s leading online travel agencies.
Why Are We Wary of EXPE?
- Choice to prioritize new users over monetization has resulted in weak growth in its average revenue per booking
- Estimated sales growth of 6.3% for the next 12 months implies demand will slow from its three-year trend
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
Expedia’s stock price of $293 implies a valuation ratio of 7.9x forward EV/EBITDA. To fully understand why you should be careful with EXPE, check out our full research report (it’s free).
SLB (SLB)
Market Cap: $80.44 billion
What began in 1926 with two brothers logging the first electrical measurements in a well, SLB (NYSE: SLB) provides technology and services to help oil and gas companies locate reservoirs, drill wells, and produce hydrocarbons.
Why Does SLB Worry Us?
- Gross margin of 21.4% reflects its high production costs and unfavorable asset base
SLB is trading at $54.31 per share, or 18.9x forward P/E. Dive into our free research report to see why there are better opportunities than SLB.
One Stock to Buy:
Blackstone (BX)
Market Cap: $101.4 billion
With over $1 trillion in assets under management and investments spanning real estate, private equity, credit, and hedge funds, Blackstone (NYSE: BX) is a global alternative asset manager that invests capital on behalf of pension funds, sovereign wealth funds, and other institutional investors.
Why Is BX a Good Business?
- Annual revenue growth of 21.2% over the past two years was outstanding, reflecting market share gains this cycle
- Additional sales over the last two years increased its profitability as the 24.2% annual growth in its earnings per share outpaced its revenue
At $126.74 per share, Blackstone trades at 20x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.
