
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.
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 are two S&P 500 stocks positioned to outperform and one that could be in trouble.
One Stock to Sell:
Qualcomm (QCOM)
Market Cap: $142.9 billion
Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ:QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.
Why Does QCOM Worry Us?
- Forecasted revenue decline of 5% for the upcoming 12 months implies demand will fall off a cliff
Qualcomm is trading at $136.02 per share, or 13.1x forward P/E. Dive into our free research report to see why there are better opportunities than QCOM.
Two Stocks to Watch:
Expedia (EXPE)
Market Cap: $30.68 billion
Originally founded as a part of Microsoft, Expedia (NASDAQ:EXPE) is one of the world’s leading online travel agencies.
Why Are We Fans of EXPE?
- Prominent and differentiated platform culminates in a best-in-class gross margin of 89.8%
- Excellent EBITDA margin of 22.6% highlights the efficiency of its business model, and its rise over the last few years was fueled by some leverage on its fixed costs
- Share repurchases over the last three years enabled its annual earnings per share growth of 33% to outpace its revenue gains
Expedia’s stock price of $250.86 implies a valuation ratio of 8.7x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Elevance Health (ELV)
Market Cap: $75.2 billion
Formerly known as Anthem until its 2022 rebranding, Elevance Health (NYSE:ELV) is one of America's largest health insurers, serving approximately 47 million medical members through its network-based managed care plans.
Why Does ELV Stand Out?
- Products and services resonate with customers, evidenced by its respectable 9.9% annualized sales growth over the last five years
- Massive revenue base of $198.3 billion gives it meaningful leverage when negotiating reimbursement rates
- Industry-leading 26.6% return on capital demonstrates management’s skill in finding high-return investments
At $346 per share, Elevance Health trades at 12.6x 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
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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.