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

While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.

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 could deliver good returns and two that may struggle.

Two Stocks to Sell:

Wynn Resorts (WYNN)

Market Cap: $10.03 billion

Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ:WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services.

Why Do We Think WYNN Will Underperform?

1. Sales trends were unexciting over the last two years as its 2.3% annual growth was below the typical consumer discretionary company
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 10.2% for the last two years
3. High net-debt-to-EBITDA ratio of 6× could force the company to raise capital on unfavorable terms if market conditions deteriorate

Wynn Resorts’s stock price of $97.94 implies a valuation ratio of 22x forward P/E. Dive into our free research report to see why there are better opportunities than WYNN.

Packaging Corporation of America (PKG)

Market Cap: $20.72 billion

Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.

Why Do We Think Twice About PKG?

1. Weak unit sales over the past two years suggest it might have to lower prices to accelerate growth
2. Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 5.2 percentage points
3. Waning returns on capital imply its previous profit engines are losing steam

At $233.64 per share, Packaging Corporation of America trades at 21.1x forward P/E. Check out our free in-depth research report to learn more about why PKG doesn’t pass our bar.

One Stock to Watch:

Intuit (INTU)

Market Cap: $80.64 billion

Originally named after its founding product "Intuitive for the first-time user," Intuit (NASDAQ:INTU) provides financial management software and services including TurboTax, QuickBooks, Credit Karma, and Mailchimp to help consumers and small businesses manage their finances.

Why Are We Fans of INTU?

1. Software platform has product-market fit given the rapid recovery of its customer acquisition costs
2. Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 27.5%, and its operating leverage amplified its profits over the last year
3. Robust free cash flow margin of 36.9% gives it many options for capital deployment

Intuit is trading at $293.36 per share, or 3.3x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free.

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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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.