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. Keeping that in mind, here is one S&P 500 stock that could deliver good returns and two that may struggle.
Two Stocks to Sell:
onsemi (ON)
Market Cap: $45.54 billion
Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ: ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.
Why Are We Cautious About ON?
- Sales tumbled by 13.8% annually over the last two years, showing market trends are working against its favor during this cycle
- Projected sales growth of 9.8% for the next 12 months suggests sluggish demand
- Gross margin of 39% is below its competitors, leaving less money to invest in areas like marketing and R&D
At $115.79 per share, onsemi trades at 32.5x forward P/E. If you’re considering ON for your portfolio, see our FREE research report to learn more.
GE HealthCare (GEHC)
Market Cap: $29.22 billion
Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ: GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.
Why Is GEHC Not Exciting?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.7% over the last two years was below our standards for the healthcare sector
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
GE HealthCare’s stock price of $64.01 implies a valuation ratio of 12.9x forward P/E. Read our free research report to see why you should think twice about including GEHC in your portfolio.
One Stock to Buy:
Synchrony Financial (SYF)
Market Cap: $24.16 billion
Powering over 73 million active accounts and partnerships with major brands like Amazon, PayPal, and Lowe's, Synchrony Financial (NYSE: SYF) provides credit cards, installment loans, and banking products through partnerships with retailers, healthcare providers, and digital platforms.
Why Should You Buy SYF?
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 37.9% annually
- Annual tangible book value per share growth of 15.9% over the past five years was outstanding, reflecting strong capital accumulation this cycle
- ROE punches in at 22.2%, illustrating management’s expertise in identifying profitable investments
Synchrony Financial is trading at $71.82 per share, or 7.5x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 meeting near-term momentum - both boxes checked at the same time.
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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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
