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.
Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. That said, here are two S&P 500 stocks leading the market forward and one that may struggle.
One Stock to Sell:
AIG (AIG)
Market Cap: $38.94 billion
With roots dating back to 1919 when it began as a small insurance agency in Shanghai, China, AIG (NYSE: AIG) is a global insurance organization that provides commercial and personal insurance solutions to businesses and individuals across more than 200 countries.
Why Should You Dump AIG?
- Sales tumbled by 9.1% annually over the last five years, showing market trends are working against it during this cycle
- Net premiums earned contracted by 4.7% annually over the last five years, showing unfavorable market dynamics this cycle
- Flat book value per share over the last five years suggests it must find different ways to enhance shareholder value during this cycle
AIG is trading at $73.11 per share, or 0.9x forward P/B. To fully understand why you should be careful with AIG, check out our full research report (it’s free).
Two Stocks to Buy:
GE Aerospace (GE)
Market Cap: $338.7 billion
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
Why Is GE a Top Pick?
- Market share has increased this cycle as its 16.7% annual revenue growth over the last two years was exceptional
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 41.9% exceeded its revenue gains over the last two years
- Strong free cash flow margin of 17.2% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
GE Aerospace’s stock price of $324.45 implies a valuation ratio of 41.8x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Super Micro (SMCI)
Market Cap: $28.19 billion
Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ: SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications.
Why Are We Bullish on SMCI?
- Annual revenue growth of 68.9% over the last two years was superb and indicates its market share increased during this cycle
- Massive revenue base of $33.7 billion makes it a well-known name that influences purchasing decisions
- Earnings per share grew by 57.5% annually over the last five years and trumped its peers
At $49.20 per share, Super Micro trades at 15.3x forward P/E. Is now the time to initiate a position? 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
