The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.
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 that could be in trouble.
Two Stocks to Sell:
Take-Two (TTWO)
Market Cap: $44.79 billion
Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ: TTWO) is one of the world’s largest video game publishers.
Why Are We Wary of TTWO?
- Estimated sales growth of 5.9% for the next 12 months implies demand will slow from its three-year trend
- Earnings per share fell by 487% annually over the last three years while its revenue grew, partly because it diluted shareholders
- Cash burn makes us question whether it can achieve sustainable long-term growth
Take-Two’s stock price of $242.78 implies a valuation ratio of 46.9x forward EV/EBITDA. To fully understand why you should be careful with TTWO, check out our full research report (it’s free for active Edge members).
Estée Lauder (EL)
Market Cap: $38.04 billion
Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE: EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men’s grooming.
Why Is EL Not Exciting?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Overall productivity fell over the last year as its plummeting sales were accompanied by a decline in its operating margin
- Sales were less profitable over the last three years as its earnings per share fell by 36.9% annually, worse than its revenue declines
At $106.00 per share, Estée Lauder trades at 46.1x forward P/E. Check out our free in-depth research report to learn more about why EL doesn’t pass our bar.
One Stock to Watch:
Molina Healthcare (MOH)
Market Cap: $8.58 billion
Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE: MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.
Why Does MOH Stand Out?
- Annual revenue growth of 19.3% over the past five years was outstanding, reflecting market share gains this cycle
- Scale advantages are evident in its $44.55 billion revenue base, which provides operating leverage when demand is strong
- Earnings per share grew by 5.8% annually over the last five years and slightly topped the peer group average
Molina Healthcare is trading at $168.85 per share, or 13.4x forward P/E. Is now a good time to buy? Find out in our full 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 5 Strong Momentum Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% 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
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