The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning. Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. That said, here is one S&P 500 stock that is positioned to outperform and two that may struggle.
Two Stocks to Sell:
Lowe's (LOW)
Market Cap: $114.6 billion
Founded in North Carolina as Lowe's North Wilkesboro Hardware, the company is a home improvement retailer that sells everything from paint to tools to building materials.
Why Are We Hesitant About LOW?
- Sales tumbled by 2.6% annually over the last three years, showing consumer trends are working against it
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Gross margin of 33.3% is below its competitors, leaving less money for marketing and promotions
At $204.04 per share, Lowe's trades at 16x forward P/E. To fully understand why you should be careful with LOW, check out our full research report (it’s free).
PACCAR (PCAR)
Market Cap: $69 billion
Founded more than a century ago, PACCAR (NASDAQ: PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
Why Is PCAR Not Exciting?
- Sales tumbled by 11.4% annually over the last two years, showing market trends are working against it during this cycle
- Earnings per share have contracted by 30.2% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
PACCAR is trading at $131.19 per share, or 21x forward P/E. If you’re considering PCAR for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
McKesson (MCK)
Market Cap: $95.31 billion
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE: MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Are We Bullish on MCK?
- Annual revenue growth of 14.3% over the last two years beat the sector average and underscores the unique value of its offerings
- Enormous revenue base of $403.4 billion gives it economies of scale and advantages over new entrants due to the industry’s regulatory complexity
- Share repurchases over the last five years enabled its annual earnings per share growth of 17.9% to outpace its revenue gains
McKesson’s stock price of $827.03 implies a valuation ratio of 18.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
