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. Keeping that in mind, here is one S&P 500 stock that is leading the market forward and two best left off your watchlist.
Two Stocks to Sell:
GoDaddy (GDDY)
Market Cap: $15.88 billion
Known for its memorable Super Bowl commercials that put it on the map, GoDaddy (NYSE: GDDY) is a domain registrar and web services provider that helps entrepreneurs establish an online presence through domain registration, website building, hosting, and e-commerce tools.
Why Should You Sell GDDY?
- Average bookings growth of 7.8% over the last year was mediocre and suggests fewer customers signed long-term contracts
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 6.5%
- Gross margin of 63.6% is below its competitors, leaving less money to invest in areas like marketing and R&D
GoDaddy’s stock price of $117.51 implies a valuation ratio of 3.2x forward price-to-sales. Check out our free in-depth research report to learn more about why GDDY doesn’t pass our bar.
Carnival (CCL)
Market Cap: $42.06 billion
Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE: CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.
Why Do We Pass on CCL?
- Demand for its offerings was relatively low as its number of passenger cruise days has underwhelmed
- Low free cash flow margin of 7.6% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Negative returns on capital show management lost money while trying to expand the business
Carnival is trading at $32.05 per share, or 12.8x forward P/E. Dive into our free research report to see why there are better opportunities than CCL.
One Stock to Watch:
Match Group (MTCH)
Market Cap: $7.69 billion
Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ: MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.
Why Could MTCH Be a Winner?
- Customer spending is rising as the company has focused on monetization over the last two years, leading to 7.9% annual growth in its average revenue per user
- Highly efficient business model is illustrated by its impressive 35.7% EBITDA margin
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $32.53 per share, Match Group trades at 8.5x forward EV/EBITDA. Is now a good time to buy? See for yourself 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
