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 could deliver good returns and two best left off your watchlist.
Two Stocks to Sell:
eBay (EBAY)
Market Cap: $50.81 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?
- Competition may be pulling attention away from its platform as its 1.3% average growth in active buyers was choppy
- Anticipated sales growth of 5.8% for the next year implies demand will be shaky
- Expenses have increased as a percentage of revenue over the last few years as its EBITDA margin fell by 6.7 percentage points
eBay is trading at $114.46 per share, or 15x forward EV/EBITDA. If you’re considering EBAY for your portfolio, see our FREE research report to learn more.
West Pharmaceutical Services (WST)
Market Cap: $21.51 billion
Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE: WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.
Why Do We Think Twice About WST?
- Sales trends were unexciting over the last two years as its 4.9% annual growth was below the typical healthcare company
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 5.8 percentage points
- Eroding returns on capital suggest its historical profit centers are aging
West Pharmaceutical Services’s stock price of $307.50 implies a valuation ratio of 34.7x forward P/E. Read our free research report to see why you should think twice about including WST in your portfolio.
One Stock to Buy:
Hubbell (HUBB)
Market Cap: $24.88 billion
A respected player in the electrical segment, Hubbell (NYSE: HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.
Why Will HUBB Beat the Market?
- Solid 10.2% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Share buybacks catapulted its annual earnings per share growth to 19.7%, which outperformed its revenue gains over the last five years
- Free cash flow margin expanded by 7.2 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $470.85 per share, Hubbell trades at 23.7x forward P/E. Is now a good time to buy? Find out in our full 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 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 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.
