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. That said, here is one S&P 500 stock that could deliver good returns and two that may struggle.
Two stocks to sell:
Norwegian Cruise Line (NCLH)
Market cap: $8.00 billion
With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE: NCLH) is a premier global cruise company.
Why Do We Avoid NCLH?
- Performance surrounding its passenger cruise days has lagged its peers
- Projected 2 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Norwegian Cruise Line’s stock price of $17.33 implies a valuation ratio of 14.3x forward P/E. To fully understand why you should be careful with NCLH, check out our full research report (it’s free).
Deere (DE)
Market cap: $179.5 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 Is DE Risky?
- Annual sales declines of 7.4% for the past two years show its products and services struggled to connect with the market during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Waning returns on capital imply its previous profit engines are losing steam
At $668.30 per share, Deere trades at 31.8x forward P/E. Dive into our free research report to see why there are better opportunities than DE.
One stock to buy:
Meta (META)
Market cap: $1.59 trillion
Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ: META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.
Why Are We Bullish on META?
- Monetization efforts are paying off as its average revenue per user has grown by 21.9% annually over the last two years
- Excellent EBITDA margin of 59.8% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
- Share repurchases over the last three years enabled its annual earnings per share growth of 38% to outpace its revenue gains
Meta is trading at $618.25 per share, or 9.3x 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
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
