2 S&P 500 Stocks with Competitive Advantages and 1 Facing Challenges

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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 may struggle.

One Stock to Sell:

Hartford (HIG)

Market Cap: $34.98 billion

Recognizable by its iconic stag logo that dates back to 1810, The Hartford (NYSE: HIG) provides property and casualty insurance, group benefits, and investment products to individuals and businesses across the United States.

Why Are We Wary of HIG?

  1. Large revenue base constrains its growth potential, as seen in its unexciting 6.5% annualized increases in net premiums earned over the last two years fell below our expectations for the insurance sector
  2. Sales are projected to tank by 27.6% over the next 12 months as demand evaporates
  3. Sizable asset base leads to capital growth challenges as its 6.8% annual book value per share increases over the last five years fell short of other insurance companies

Hartford’s stock price of $127.37 implies a valuation ratio of 1.8x forward P/B. If you’re considering HIG for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Amgen (AMGN)

Market Cap: $186.6 billion

Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.

Why Does AMGN Stand Out?

  1. Offerings and unique value proposition resonate with customers, as seen in its above-market 12.3% annual sales growth over the last two years
  2. Economies of scale give it more fixed cost leverage than its smaller competitors
  3. Robust free cash flow margin of 27.7% gives it many options for capital deployment

Amgen is trading at $347 per share, or 5x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

ConocoPhillips (COP)

Market Cap: $144.8 billion

Operating the famous Prudhoe Bay field discovered in 1968 that transformed Alaska's economy, ConocoPhillips (NYSE: COP) explores for and produces crude oil, natural gas, and liquefied natural gas across North America, Europe, Asia, and Africa.

Why Do We Love COP?

  1. Annual revenue growth of 8% over the last ten years was superb and indicates its market share increased during this cycle
  2. Dominant market position is represented by its $60.5 billion in revenue and gives it fixed cost leverage when sales grow
  3. Strong free cash flow margin of 17.3% enables it to reinvest or return capital consistently

At $118.86 per share, ConocoPhillips trades at 11.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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