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 is one S&P 500 stock that could deliver good returns and two best left off your watchlist.
Two Stocks to Sell:
Hilton (HLT)
Market Cap: $72.53 billion
Founded in 1919, Hilton Worldwide (NYSE: HLT) is a global hospitality company with a portfolio of hotel brands.
Why Do We Think HLT Will Underperform?
- Revenue per room has disappointed over the past two years due to weaker trends in its daily rates and occupancy levels
- Subpar operating margin of 22.1% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Free cash flow margin is not anticipated to grow over the next year
Hilton’s stock price of $318.42 implies a valuation ratio of 35.2x forward P/E. If you’re considering HLT for your portfolio, see our FREE research report to learn more.
Gilead Sciences (GILD)
Market Cap: $163.4 billion
From its groundbreaking work in developing the first single-tablet regimens for HIV treatment, Gilead Sciences (NASDAQ: GILD) develops and markets innovative medicines for life-threatening diseases including HIV, viral hepatitis, COVID-19, and cancer.
Why Are We Wary of GILD?
- The company has faced growth challenges as its 3.6% annual revenue increases over the last five years fell short of other healthcare companies
- Free cash flow margin shrank by 7.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Diminishing returns on capital suggest its earlier profit pools are drying up
Gilead Sciences is trading at $132.70 per share, or 15.3x forward P/E. Dive into our free research report to see why there are better opportunities than GILD.
One Stock to Buy:
Quanta (PWR)
Market Cap: $111.4 billion
A construction engineering services company, Quanta (NYSE: PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Will PWR Outperform?
- Average backlog growth of 21.2% over the past two years shows it has a steady sales pipeline that will drive future orders
- Market share will likely rise over the next 12 months as its expected revenue growth of 18.7% is robust
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 26% annually
At $743.60 per share, Quanta trades at 51.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth 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.
