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.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. That said, here are two S&P 500 stocks that could deliver good returns and one that may struggle.
One Stock to Sell:
IQVIA (IQV)
Market Cap: $30.22 billion
Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE: IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.
Why Are We Hesitant About IQV?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 5.1% over the last two years was below our standards for the healthcare sector
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Free cash flow margin has shown no improvement over the last five years
At $181.03 per share, IQVIA trades at 13.9x forward P/E. Read our free research report to see why you should think twice about including IQV in your portfolio.
Two Stocks to Watch:
Ross Stores (ROST)
Market Cap: $76.7 billion
Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ: ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.
Why Are We Backing ROST?
- Same-store sales growth lends it the confidence to gradually expand its store base so it can reach more customers
- Same-store sales growth averaged 5.4% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Ross Stores is trading at $240.20 per share, or 2.9x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
United Rentals (URI)
Market Cap: $66.94 billion
Owning the largest rental fleet in the world, United Rentals (NYSE: URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.
Why Do We Like URI?
- Market share has increased this cycle as its 14.1% annual revenue growth over the last five years was exceptional
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 25.9%
- Share repurchases over the last five years enabled its annual earnings per share growth of 19.6% to outpace its revenue gains
United Rentals’s stock price of $1,068 implies a valuation ratio of 21.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
