The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.
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 best left off your watchlist.
Two Stocks to Sell:
Hasbro (HAS)
Market Cap: $11.91 billion
Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.
Why Do We Avoid HAS?
- Products and services have few die-hard fans as sales have declined by 2.5% annually over the last five years
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 7.4% annually
- Stagnant returns on capital show management has failed to improve the company’s business quality
Hasbro’s stock price of $85.50 implies a valuation ratio of 14.5x forward P/E. Check out our free in-depth research report to learn more about why HAS doesn’t pass our bar.
W.W. Grainger (GWW)
Market Cap: $61.38 billion
Founded as a supplier of motors, W.W. Grainger (NYSE: GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.
Why Does GWW Fall Short?
- The company has faced growth challenges as its 5.1% annual revenue increases over the last two years fell short of other industrials companies
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 1.3% annually
W.W. Grainger is trading at $1,299 per share, or 27.7x forward P/E. Dive into our free research report to see why there are better opportunities than GWW.
One Stock to Buy:
Charles Schwab (SCHW)
Market Cap: $154.5 billion
Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE: SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.
Why Is SCHW a Top Pick?
- Impressive 15.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share buybacks catapulted its annual earnings per share growth to 33.9%, which outperformed its revenue gains over the last two years
- ROE punches in at 14.9%, illustrating management’s expertise in identifying profitable investments
At $88.28 per share, Charles Schwab trades at 13.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.
