1 S&P 500 Stock with Promising Prospects and 2 We Question

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. That said, here is one S&P 500 stock that is positioned to outperform and two that may struggle.

Two Stocks to Sell:

FOX (FOXA)

Market Cap: $27.17 billion

Founded in 1915, Fox (NASDAQ:FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.

Why Do We Think FOXA Will Underperform?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 5.4% for the last five years
2. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 5.4 percentage points
3. Returns on capital are increasing as management makes relatively better investment decisions

FOX’s stock price of $54.23 implies a valuation ratio of 9.2x forward P/E. If you’re considering FOXA for your portfolio, see our FREE research report to learn more.

Biogen (BIIB)

Market Cap: $29.52 billion

Founded in 1978 and pioneering treatments for some of medicine's most complex challenges, Biogen (NASDAQ:BIIB) develops and markets therapies for neurological conditions, including multiple sclerosis, Alzheimer's disease, spinal muscular atrophy, and rare diseases.

Why Are We Hesitant About BIIB?

1. Sales tumbled by 4.6% annually over the last five years, showing market trends are working against it during this cycle
2. Sales were less profitable over the last five years as its earnings per share fell by 11.4% annually, worse than its revenue declines
3. Waning returns on capital imply its previous profit engines are losing steam

Biogen is trading at $210 per share, or 16x forward P/E. To fully understand why you should be careful with BIIB, check out our full research report (it’s free).

One Stock to Watch:

GE Vernova (GEV)

Market Cap: $243.7 billion

Born from the energy business of industrial giant General Electric in a 2023 spin-off, GE Vernova (NYSE:GEV) designs, manufactures, and services power generation equipment and grid technologies to help customers build more reliable and sustainable electric systems.

Why Does GEV Catch Our Eye?

1. Exciting sales outlook for the upcoming 12 months calls for 20.4% growth, an acceleration from its two-year trend
2. Earnings growth has trumped its peers over the last one years as its EPS has compounded at 223% annually
3. Free cash flow margin increased by 41.9 percentage points over the last four years, giving the company more capital to invest or return to shareholders

At $1,138 per share, GE Vernova trades at 63.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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.