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.
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 may struggle.
Two Stocks to Sell:
General Mills (GIS)
Market Cap: $26.15 billion
Best known for its portfolio of powerhouse breakfast cereal brands, General Mills (NYSE: GIS) is a packaged foods company that has also made a mark in cereals, baking products, and snacks.
Why Do We Think Twice About GIS?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Sales are projected to be flat over the next 12 months and imply weak demand
- Free cash flow margin shrank by 4.6 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
General Mills’s stock price of $48.96 implies a valuation ratio of 13.1x forward P/E. Check out our free in-depth research report to learn more about why GIS doesn’t pass our bar.
T. Rowe Price (TROW)
Market Cap: $20.5 billion
Founded in 1937 by Thomas Rowe Price Jr., who pioneered the growth stock investing approach, T. Rowe Price (NASDAQ: TROW) is an investment management firm that offers mutual funds, advisory services, and retirement planning solutions to individuals and institutions.
Why Are We Cautious About TROW?
- Sales trends were unexciting over the last five years as its 3.5% annual growth was below the typical financials company
- Earnings per share were flat over the last five years while its revenue grew, showing its incremental sales were less profitable
At $93.65 per share, T. Rowe Price trades at 9.6x forward P/E. To fully understand why you should be careful with TROW, check out our full research report (it’s free).
One Stock to Buy:
Moody's (MCO)
Market Cap: $73.54 billion
Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE: MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.
Why Are We Backing MCO?
- 14.5% annual revenue growth over the last two years surpassed the sector average as its products resonated with customers
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 22.3% exceeded its revenue gains over the last two years
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Moody's is trading at $414.25 per share, or 26x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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