2 S&P 500 Stocks to Target This Week and 1 We Find Risky

The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.

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 that could deliver good returns and one that could be in trouble.

One Stock to Sell:

A. O. Smith (AOS)

Market Cap: $8.30 billion

Credited with the invention of the glass-lined water heater, A.O. Smith (NYSE:AOS) manufactures water heating and treatment products for various industries.

Why Do We Think Twice About AOS?

1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. Waning returns on capital imply its previous profit engines are losing steam

A. O. Smith’s stock price of $60.23 implies a valuation ratio of 15.7x forward P/E. To fully understand why you should be careful with AOS, check out our full research report (it’s free).

Two Stocks to Buy:

Wabtec (WAB)

Market Cap: $45.06 billion

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and related software for the railway industry.

Why Do We Love WAB?

1. 9.1% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
2. Operating margin expanded by 4.3 percentage points over the last five years as it scaled and became more efficient
3. Share buybacks catapulted its annual earnings per share growth to 19.9%, which outperformed its revenue gains over the last two years

Wabtec is trading at $265.77 per share, or 25.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Accenture (ACN)

Market Cap: $110.6 billion

With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE:ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.

Why Is ACN a Good Business?

1. Annual revenue growth of 9.6% over the past five years was outstanding, reflecting market share gains this cycle
2. Unparalleled revenue scale of $72.11 billion gives it an edge in distribution
3. Free cash flow margin expanded by 5.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

At $179.00 per share, Accenture trades at 12.2x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.