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 positioned to outperform and two that could be in trouble.
Two Stocks to Sell:
Viatris (VTRS)
Market Cap: $13.75 billion
Created through the 2020 merger of Mylan and Pfizer's Upjohn division, Viatris (NASDAQ: VTRS) is a healthcare company that develops, manufactures, and distributes branded and generic medicines across more than 165 countries worldwide.
Why Do We Steer Clear of VTRS?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.4% annually over the last two years
- Earnings per share fell by 13.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Negative returns on capital show management lost money while trying to expand the business, and its shrinking returns suggest its past profit sources are losing steam
Viatris’s stock price of $11.96 implies a valuation ratio of 4.9x forward P/E. Dive into our free research report to see why there are better opportunities than VTRS.
Allstate (ALL)
Market Cap: $53.62 billion
Born from a Sears, Roebuck & Co. initiative during the Great Depression with its famous "You're in good hands" slogan, Allstate (NYSE: ALL) is one of America's largest personal property and casualty insurers, offering protection for autos, homes, and personal property.
Why Does ALL Fall Short?
- Estimated sales growth of 2.5% for the next 12 months implies demand will slow from its two-year trend
- Combined ratio failed to improve over the last five years, indicating the firm couldn’t optimize its expenses
- Sizable asset base leads to capital growth challenges as its 3.2% annual book value per share increases over the last five years fell short of other insurance companies
Allstate is trading at $205.50 per share, or 2x forward P/B. If you’re considering ALL for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Broadcom (AVGO)
Market Cap: $1.56 trillion
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ: AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Why Do We Love AVGO?
- Impressive 33.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Offerings are difficult to replicate at scale and result in a best-in-class gross margin of 76.4%
- AVGO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $330.70 per share, Broadcom trades at 32.3x 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 6 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-small-cap company Exlservice (+354% 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.
