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.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. Keeping that in mind, here is one S&P 500 stock that could deliver good returns and two best left off your watchlist.
Two Stocks to Sell:
Intel (INTC)
Market Cap: $609.2 billion
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is a leading manufacturer of computer processors and graphics chips.
Why Do We Think INTC Will Underperform?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.9% annually over the last five years
- Earnings per share decreased by more than its revenue over the last five years, partly because it diluted shareholders
- Cash burn makes us question whether it can achieve sustainable long-term growth
Intel is trading at $116.79 per share, or 68.9x forward P/E. To fully understand why you should be careful with INTC, check out our full research report (it’s free).
Church & Dwight (CHD)
Market Cap: $22.52 billion
Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE: CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.
Why Do We Think Twice About CHD?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.3%
- Earnings growth over the last three years fell short of the peer group average as its EPS only increased by 3.7% annually
Church & Dwight’s stock price of $94.96 implies a valuation ratio of 24.5x forward P/E. If you’re considering CHD for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Rollins (ROL)
Market Cap: $14.67 billion
Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE: ROL) provides pest and wildlife control services to residential and commercial customers.
Why Does ROL Catch Our Eye?
- Impressive 11.3% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Offerings are mission-critical for businesses and result in a best-in-class gross margin of 52.2%
- Strong free cash flow margin of 16.1% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
At $30.51 per share, Rollins trades at 25.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
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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.
