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. Keeping that in mind, here is one S&P 500 stock that is leading the market forward and two best left off your watchlist.
Two Stocks to Sell:
Akamai (AKAM)
Market Cap: $17.45 billion
With a massive distributed network spanning 4,100+ points of presence in nearly 130 countries, Akamai Technologies (NASDAQ: AKAM) provides a global distributed cloud platform that helps businesses deliver, secure, and optimize their digital experiences online.
Why Do We Think AKAM Will Underperform?
- Offerings struggled to generate meaningful interest as its average billings growth of 6.8% over the last year did not impress
- Gross margin of 58.3% is way below its competitors, leaving less money to invest in areas like marketing and R&D
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 25.3 percentage points over the next year
At $120.12 per share, Akamai trades at 4.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than AKAM.
International Flavors & Fragrances (IFF)
Market Cap: $19.23 billion
Responsible for the scents in your favorite perfumes and the flavors in your daily snacks, International Flavors & Fragrances (NYSE: IFF) creates and manufactures ingredients for food, beverages, personal care products, and pharmaceuticals used in countless consumer goods.
Why Do We Avoid IFF?
- Products aren’t resonating with the market as its revenue declined by 4.1% annually over the last three years
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Negative returns on capital show that some of its growth strategies have backfired
International Flavors & Fragrances is trading at $75.31 per share, or 16.9x forward P/E. If you’re considering IFF for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Wabtec (WAB)
Market Cap: $44.07 billion
Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.
Why Should You Buy WAB?
- 9.1% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
- Operating margin expanded by 4.3 percentage points over the last five years as it scaled and became more efficient
- Share buybacks catapulted its annual earnings per share growth to 19.9%, which outperformed its revenue gains over the last two years
Wabtec’s stock price of $259.83 implies a valuation ratio of 24.2x forward P/E. Is now the time to initiate a position? Find out in our full 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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
