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.
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 is positioned to outperform and two best left off your watchlist.
Two Stocks to Sell:
Molson Coors (TAP)
Market Cap: $8.95 billion
Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE: TAP) is a global brewing giant with a rich history dating back more than two centuries.
Why Do We Think TAP Will Underperform?
- Falling unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 33.7 percentage points
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up
At $45.24 per share, Molson Coors trades at 8.4x forward P/E. If you’re considering TAP for your portfolio, see our FREE research report to learn more.
Builders FirstSource (BLDR)
Market Cap: $10.59 billion
Headquartered in Irving, TX, Builders FirstSource (NYSE: BLDR) is a construction materials manufacturer that offers a variety of lumber and lumber-related building products.
Why Does BLDR Give Us Pause?
- Sales tumbled by 4.9% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share have dipped by 24.8% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Diminishing returns on capital suggest its earlier profit pools are drying up
Builders FirstSource is trading at $97.88 per share, or 15.9x forward P/E. Check out our free in-depth research report to learn more about why BLDR doesn’t pass our bar.
One Stock to Watch:
Match Group (MTCH)
Market Cap: $7.44 billion
Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ: MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.
Why Are We Fans of MTCH?
- Customer spending is rising as the company has focused on monetization over the last two years, leading to 7.9% annual growth in its average revenue per user
- Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 35.7%
- MTCH is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
Match Group’s stock price of $31.51 implies a valuation ratio of 6.1x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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).
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-small-cap company Comfort Systems (+782% 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.
