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 could deliver good returns and two that could be in trouble.
Two Stocks to Sell:
Hasbro (HAS)
Market Cap: $13.41 billion
Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.
Why Do We Pass on HAS?
- Annual revenue declines of 3.5% over the last five years indicate problems with its market positioning
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 2.7% annually
Hasbro is trading at $95.59 per share, or 15.8x forward P/E. Read our free research report to see why you should think twice about including HAS in your portfolio.
Live Nation (LYV)
Market Cap: $42.97 billion
Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE: LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.
Why Are We Out on LYV?
- Annual sales growth of 5.1% over the last two years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
- Subpar operating margin of 3.6% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 1.8 percentage points
At $183.98 per share, Live Nation trades at 131.5x forward P/E. Check out our free in-depth research report to learn more about why LYV doesn’t pass our bar.
One Stock to Watch:
United Rentals (URI)
Market Cap: $72.5 billion
Owning the largest rental fleet in the world, United Rentals (NYSE: URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.
Why Does URI Stand Out?
- Annual revenue growth of 13.8% over the past five years was outstanding, reflecting market share gains this cycle
- Excellent operating margin of 26.1% highlights the efficiency of its business model
- Share repurchases over the last five years enabled its annual earnings per share growth of 19.5% to outpace its revenue gains
United Rentals’s stock price of $1,169 implies a valuation ratio of 22x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.
