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 are two S&P 500 stocks positioned to outperform and one best left off your watchlist.
One Stock to Sell:
Tyson Foods (TSN)
Market Cap: $18.53 billion
Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.
Why Do We Avoid TSN?
- Annual sales growth of 1.1% over the last three years lagged behind its consumer staples peers as its large revenue base made it difficult to generate incremental demand
- Gross margin of 7.4% is an output of its commoditized products
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
At $52.25 per share, Tyson Foods trades at 14.4x forward P/E. To fully understand why you should be careful with TSN, check out our full research report (it’s free for active Edge members).
Two Stocks to Watch:
Tractor Supply (TSCO)
Market Cap: $29.87 billion
Started as a mail-order tractor parts business, Tractor Supply (NASDAQ: TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer.
Why Are We Fans of TSCO?
- Rapidly increasing store base reflects a desire to sell in new markets and scale quickly
- Free cash flow margin expanded by 2.6 percentage points over the last year, providing additional flexibility for investments and share buybacks/dividends
- Industry-leading 32.7% return on capital demonstrates management’s skill in finding high-return investments
Tractor Supply is trading at $56.31 per share, or 24.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Charles Schwab (SCHW)
Market Cap: $172.2 billion
Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE: SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.
Why Is SCHW Interesting?
- Annual revenue growth of 17.8% over the last five years was superb and indicates its market share increased during this cycle
- Earnings per share have outperformed the peer group average over the last five years, increasing by 14.5% annually
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Charles Schwab’s stock price of $94.85 implies a valuation ratio of 17.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
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 9 Market-Beating Stocks. 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
