The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning. Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.
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 could deliver good returns and two that may struggle.
Two Stocks to Sell:
Conagra (CAG)
Market Cap: $7.44 billion
Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE: CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.
Why Are We Out on CAG?
- Falling unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
Conagra is trading at $15.61 per share, or 9.2x forward P/E. Read our free research report to see why you should think twice about including CAG in your portfolio.
KeyCorp (KEY)
Market Cap: $20.78 billion
Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE: KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.
Why Does KEY Worry Us?
- Muted 2.9% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Net interest margin of 2.4% is well below other banks, signaling its loans aren’t very profitable
- Tangible book value per share was flat over the last five years, indicating it’s failed to build equity value this cycle
At $19.01 per share, KeyCorp trades at 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than KEY.
One Stock to Watch:
Electronic Arts (EA)
Market Cap: $50.2 billion
Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ: EA) is one of the world’s largest video game publishers.
Why Is EA Interesting?
- Marketing spend is minimal, showing it doesn’t need advertisements to acquire new users because of its well-known brand
- Healthy EBITDA margin of 35.3% shows it’s a well-run company with efficient processes
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
Electronic Arts’s stock price of $200.38 implies a valuation ratio of 16.4x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
