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 is leading the market forward and two best left off your watchlist.
Two Stocks to Sell:
BNY (BNY)
Market Cap: $97.53 billion
Tracing its roots back to 1784 when it was founded by Alexander Hamilton, BNY (NYSE: BNY) is a global financial institution that provides asset servicing, wealth management, and investment services to institutions, corporations, and high-net-worth individuals.
Why Are We Cautious About BNY?
- Annual sales growth of 5.7% over the last five years lagged behind its financials peers as its large revenue base made it difficult to generate incremental demand
- Sizable asset base leads to capital growth challenges as its 4% annual tangible book value per share increases over the last five years fell short of other financials companies
- ROE of 9.6% reflects management’s challenges in identifying attractive investment opportunities
BNY’s stock price of $145.65 implies a valuation ratio of 16.5x forward P/E. Check out our free in-depth research report to learn more about why BNY doesn’t pass our bar.
Prudential (PRU)
Market Cap: $36.99 billion
Recognized by its iconic Rock of Gibraltar logo symbolizing strength and stability since 1896, Prudential Financial (NYSE: PRU) provides life insurance, annuities, retirement solutions, investment management, and other financial services to individual and institutional customers globally.
Why Should You Sell PRU?
- Insurance offerings faced market headwinds this cycle, reflected in stagnant net premiums earned over the last five years
- Book value per share tumbled by 9% annually over the last five years, showing insurance sector trends are working against it during this cycle
- 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Prudential is trading at $109.84 per share, or 1.1x forward P/B. Read our free research report to see why you should think twice about including PRU in your portfolio.
One Stock to Watch:
Teledyne (TDY)
Market Cap: $28.9 billion
Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE: TDY) offers digital imaging and instrumentation products for various industries.
Why Are We Fans of TDY?
- Annual revenue growth of 14.9% over the last five years was superb and indicates its market share increased during this cycle
- Operating margin expanded by 5.1 percentage points over the last five years as it scaled and became more efficient
- Free cash flow margin increased by 9.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $650 per share, Teledyne trades at 27.3x forward P/E. Is now a good time to buy? Find out in our full 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
