The S&P 500 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.

Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. That said, here are two S&P 500 stocks that could deliver good returns and one best left off your watchlist.

One Stock to Sell:

Expeditors (EXPD)

Market Cap: $14.58 billion

Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services.

Why Do We Steer Clear of EXPD?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 21.2% annually over the last two years
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $107.51 per share, Expeditors trades at 19.6x forward price-to-earnings. If you’re considering EXPD for your portfolio, see our FREE research report to learn more.

Two Stocks to Buy:

Monolithic Power Systems (MPWR)

Market Cap: $23.39 billion

Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.

Why Are We Bullish on MPWR?

1. Impressive 10.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Monolithic Power Systems’s stock price of $514.45 implies a valuation ratio of 29.4x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free.

GE Aerospace (GE)

Market Cap: $178.9 billion

One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.

Why Is GE a Top Pick?

1. Annual revenue growth of 21.9% over the last two years was superb and indicates its market share increased during this cycle
2. Free cash flow margin grew by 13 percentage points over the last five years, giving the company more chips to play with
3. Rising returns on capital show management is finding more attractive investment opportunities

GE Aerospace is trading at $176.30 per share, or 31.9x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.