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 are two S&P 500 stocks leading the market forward and one that may struggle.
One Stock to Sell:
Chubb (CB)
Market Cap: $132.4 billion
Dating back to when a Civil War veteran created a frost-proof water meter, Chubb Limited (NYSE: CB) provides commercial and personal property and casualty insurance, reinsurance, and life insurance products to a diverse client base across 54 countries.
Why Does CB Give Us Pause?
- Outsized scale creates growth headwinds as its 6.8% annualized net premiums earned increases over the last two years underperformed other financial institutions
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Earnings per share lagged its peers over the last two years as they only grew by 16.9% annually
Chubb is trading at $343.83 per share, or 1.6x forward P/B. If you’re considering CB for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Netflix (NFLX)
Market Cap: $342.4 billion
Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.
Why Will NFLX Beat the Market?
- Global Streaming Paid Memberships are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Excellent EBITDA margin of 31.2% highlights the efficiency of its business model, and its operating leverage amplified its profits over the last few years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 50% exceeded its revenue gains over the last three years
At $80.97 per share, Netflix trades at 19.2x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
ResMed (RMD)
Market Cap: $34.13 billion
Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE: RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use.
Why Are We Fans of RMD?
- Constant currency growth averaged 8.9% over the past two years, showing it can expand globally regardless of the macroeconomic environment
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin jumped by 23.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
ResMed’s stock price of $236.94 implies a valuation ratio of 19.5x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is 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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
