The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.
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 is leading the market forward and two best left off your watchlist.
Two Stocks to Sell:
GoDaddy (GDDY)
Market Cap: $20.22 billion
Known for its memorable Super Bowl commercials that put it on the map, GoDaddy (NYSE: GDDY) is a domain registrar and web services provider that helps entrepreneurs establish an online presence through domain registration, website building, hosting, and e-commerce tools.
Why Is GDDY Not Exciting?
- Sales pipeline concerns usas its bookings growth averaged a subpar 8.1% over the last year due to intensifying competition
- Projected sales growth of 6.9% for the next 12 months suggests sluggish demand
- High servicing costs result in a relatively inferior gross margin of 64% that must be offset through increased usage
GoDaddy’s stock price of $145.90 implies a valuation ratio of 4.1x forward price-to-sales. Read our free research report to see why you should think twice about including GDDY in your portfolio.
Hormel Foods (HRL)
Market Cap: $15.9 billion
Best known for its SPAM brand, Hormel (NYSE: HRL) is a packaged foods company with products that span meat, poultry, shelf-stable foods, and spreads.
Why Are We Wary of HRL?
- Declining unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 16.7%
- Sales were less profitable over the last three years as its earnings per share fell by 6.5% annually, worse than its revenue declines
Hormel Foods is trading at $28.91 per share, or 16.7x forward P/E. Check out our free in-depth research report to learn more about why HRL doesn’t pass our bar.
One Stock to Watch:
Humana (HUM)
Market Cap: $35.42 billion
With over 80% of its revenue derived from federal government contracts, Humana (NYSE: HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.
Why Do We Like HUM?
- Annual revenue growth of 11.8% over the last five years was above the sector average and underscores its products and services value to customers
- Massive revenue base of $123.1 billion gives it meaningful leverage when negotiating reimbursement rates
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $295.75 per share, Humana trades at 19.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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