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.
Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. Keeping that in mind, here are two S&P 500 stocks that could deliver good returns and one that could be in trouble.
One Stock to Sell:
Bio-Techne (TECH)
Market Cap: $11.23 billion
With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ: TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.
Why Do We Pass on TECH?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Smaller revenue base of $1.21 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $72.45 per share, Bio-Techne trades at 36x forward P/E. If you’re considering TECH for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Veeva Systems (VEEV)
Market Cap: $33.1 billion
Originally named "Verticals onDemand" before rebranding in 2009, Veeva Systems (NYSE: VEEV) provides cloud software, data solutions, and consulting services that help life sciences companies develop and bring products to market more efficiently.
Why Do We Like VEEV?
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Highly efficient business model is illustrated by its impressive 28.8% operating margin, and its profits increased over the last year as it scaled
- VEEV is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Veeva Systems is trading at $202.46 per share, or 9x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
AutoZone (AZO)
Market Cap: $49.24 billion
Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE: AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.
Why Will AZO Outperform?
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 3.2% over the past two years
- Healthy operating margin of 19% shows it’s a well-run company with efficient processes
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
AutoZone’s stock price of $3,016 implies a valuation ratio of 17.9x 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 (+1,460% 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.
