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.
Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. That said, here is one S&P 500 stock that is positioned to outperform and two that could be in trouble.
Two Stocks to Sell:
eBay (EBAY)
Market Cap: $35.54 billion
Originally known as the first online auction site, eBay (NASDAQ: EBAY) is one of the world’s largest online marketplaces.
Why Are We Wary of EBAY?
- Likely needs to improve its platform or increase its marketing budget for penetration to accelerate as its active buyers were flat over the last two years
- Projected sales growth of 4.2% for the next 12 months suggests sluggish demand
- Costs have risen faster than its revenue over the last few years, causing its EBITDA margin to decline by 5.7 percentage points
eBay’s stock price of $77.75 implies a valuation ratio of 11.2x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than EBAY.
Ralph Lauren (RL)
Market Cap: $17.38 billion
Originally founded as a necktie company, Ralph Lauren (NYSE: RL) is an iconic American fashion brand known for its classic and sophisticated style.
Why Is RL Not Exciting?
- Muted 2.8% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4.6%
Ralph Lauren is trading at $286 per share, or 21.3x forward P/E. Read our free research report to see why you should think twice about including RL in your portfolio.
One Stock to Buy:
Coinbase (COIN)
Market Cap: $98.59 billion
Widely regarded as the face of crypto, Coinbase (NASDAQ: COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Why Will COIN Outperform?
- 58.2% annual increases in its average revenue per user over the last two years show its platform is resonating with power users
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 64.5% outpaced its revenue gains
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
At $384.26 per share, Coinbase trades at 30x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 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-micro-cap company Tecnoglass (+1,754% 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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