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.
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 that could be in trouble.
One Stock to Sell:
Mondelez (MDLZ)
Market Cap: $79.18 billion
Founded as Nabisco in 1903, Mondelez (NASDAQ: MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.
Why Does MDLZ Worry Us?
- Declining unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Estimated sales growth of 2.6% for the next 12 months implies demand will slow from its three-year trend
- Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 3% annually
Mondelez’s stock price of $61.80 implies a valuation ratio of 19.3x forward P/E. To fully understand why you should be careful with MDLZ, check out our full research report (it’s free).
Two Stocks to Watch:
Waste Management (WM)
Market Cap: $85.27 billion
Headquartered in Houston, Waste Management (NYSE: WM) is a provider of comprehensive waste management services in North America.
Why Does WM Stand Out?
- Impressive 10.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Superior product capabilities and pricing power lead to a stellar gross margin of 39.1%
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 17.5%
At $213.41 per share, Waste Management trades at 25.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Visa (V)
Market Cap: $679 billion
Processing over 829 million transactions daily and connecting billions of cards to 150 million merchant locations worldwide, Visa (NYSE: V) operates one of the world's largest electronic payments networks, facilitating secure money movement across more than 200 countries through its VisaNet processing platform.
Why Should You Buy V?
- Solid 14.5% annual revenue growth over the last five years indicates its offerings solve complex business issues
- Share buybacks propelled its annual earnings per share growth to 18.8%, which outperformed its revenue gains over the last five years
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Visa is trading at $369.32 per share, or 25.7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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.
