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 could deliver good returns and two that may struggle.
Two Stocks to Sell:
General Motors (GM)
Market Cap: $71.29 billion
Founded in 1908 by William C. Durant, General Motors (NYSE: GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.
Why Do We Think Twice About GM?
- Weak unit sales over the past two years imply it may need to invest in improvements to get back on track
- Projected sales decline of 1.1% for the next 12 months points to a tough demand environment ahead
- Gross margin of 12.2% is below its competitors, leaving less money to invest in areas like marketing and R&D
At $76.07 per share, General Motors trades at 6.9x forward P/E. Read our free research report to see why you should think twice about including GM in your portfolio.
Biogen (BIIB)
Market Cap: $26.6 billion
Founded in 1978 and pioneering treatments for some of medicine's most complex challenges, Biogen (NASDAQ: BIIB) develops and markets therapies for neurological conditions, including multiple sclerosis, Alzheimer's disease, spinal muscular atrophy, and rare diseases.
Why Are We Cautious About BIIB?
- Annual sales declines of 6.7% for the past five years show its products and services struggled to connect with the market during this cycle
- Forecasted revenue decline of 8.6% for the upcoming 12 months implies demand will fall off a cliff
- Earnings per share have dipped by 13.2% annually over the past five years, which is concerning because stock prices follow EPS over the long term
Biogen’s stock price of $181.33 implies a valuation ratio of 14.3x forward P/E. Dive into our free research report to see why there are better opportunities than BIIB.
One Stock to Watch:
Netflix (NFLX)
Market Cap: $458 billion
Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.
Why Does NFLX Stand Out?
- Global Streaming Paid Memberships are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Share repurchases over the last three years enabled its annual earnings per share growth of 29% to outpace its revenue gains
- Free cash flow margin expanded by 18.4 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Netflix is trading at $100.50 per share, or 2.7x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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
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