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. 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:
Hershey (HSY)
Market Cap: $36.97 billion
Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE: HSY) is an iconic company known for its chocolate products.
Why Does HSY Worry Us?
- Falling unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 5.2 percentage points
- Incremental sales over the last three years were much less profitable as its earnings per share fell by 3.8% annually while its revenue grew
At $182.38 per share, Hershey trades at 29x forward P/E. To fully understand why you should be careful with HSY, check out our full research report (it’s free for active Edge members).
Deere (DE)
Market Cap: $128.4 billion
Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE: DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.
Why Do We Pass on DE?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 14.5% annually over the last two years
- Diminishing returns on capital suggest its earlier profit pools are drying up
- High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Deere’s stock price of $475.73 implies a valuation ratio of 29x forward P/E. Check out our free in-depth research report to learn more about why DE doesn’t pass our bar.
One Stock to Watch:
Uber (UBER)
Market Cap: $189.7 billion
Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE: UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.
Why Is UBER on Our Radar?
- Monthly Active Platform Consumers have increased by an average of 14.7% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 212% annually, topping its revenue gains
- Free cash flow margin increased by 15.7 percentage points over the last few years, giving the company more capital to invest or return to shareholders
Uber is trading at $91.43 per share, or 18.6x forward EV/EBITDA. 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
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 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-micro-cap company Kadant (+351% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
