1 S&P 500 Stock with Promising Prospects and 2 We Avoid
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.
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 leading the market forward and two that could be in trouble.
Two Stocks to Sell:
3M (MMM)
Market Cap: $84.74 billion
Producers of the first asthma inhaler, 3M Company (NYSE:MMM) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.
Why Do We Avoid MMM?
- 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
- Projected sales growth of 3.7% for the next 12 months suggests sluggish demand
- Earnings per share have contracted by 1.6% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
At $161.26 per share, 3M trades at 18.8x forward P/E.
Ball (BALL)
Market Cap: $17.24 billion
Started with a $200 loan in 1880, Ball (NYSE:BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.
Why Should You Sell BALL?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.1% annually over the last two years
- Gross margin of 21.4% reflects its high production costs
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.1% for the last five years
Ball’s stock price of $64.79 implies a valuation ratio of 16.3x forward P/E.
One Stock to Watch:
Goldman Sachs (GS)
Market Cap: $267.4 billion
Founded in 1869 as a small commercial paper business in New York City, Goldman Sachs (NYSE:GS) is a global financial institution that provides investment banking, securities, asset management, and consumer banking services to corporations, governments, and individuals.
Why Is GS on Our Radar?
- Solid 12.3% annual revenue growth over the last two years indicates its offering’s solve complex business issues
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 49.9% exceeded its revenue gains over the last two years
- ROE of 12.7% shows management can invest its resources competently
Goldman Sachs is trading at $870.22 per share, or 14.7x forward P/E. Is now a good time to buy?
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 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests.
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).
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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