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.
Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. That said, here are two S&P 500 stocks leading the market forward and one best left off your watchlist.
One Stock to Sell:
Halliburton (HAL)
Market Cap: $29.86 billion
Behind nearly every oil and gas well drilled worldwide, Halliburton (NYSE: HAL) provides drilling, completion, and production services that help oil and gas companies extract hydrocarbons from underground reservoirs.
Why Are We Wary of HAL?
- Costly operations and weak unit economics result in an inferior gross margin of 16.8% that must be offset through higher production volumes
At $35.77 per share, Halliburton trades at 14.1x forward P/E. Read our free research report to see why you should think twice about including HAL in your portfolio.
Two Stocks to Buy:
Coherent (COHR)
Market Cap: $59.8 billion
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE: COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Why Is COHR a Good Business?
- Annual revenue growth of 23% over the last two years was superb and indicates its market share increased during this cycle
- Projected revenue growth of 49.4% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings per share grew by 83.7% annually over the last two years, massively outpacing its peers
Coherent’s stock price of $305.65 implies a valuation ratio of 31.3x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Insulet (PODD)
Market Cap: $9.15 billion
Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ: PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.
Why Are We Bullish on PODD?
- Steady constant currency growth over the past two years shows the company can pursue its global ambitions, even in uncertain economic times
- Free cash flow margin grew by 19.9 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are growing as management capitalizes on its market opportunities
Insulet is trading at $132.50 per share, or 19.5x 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
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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% 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.
