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. Keeping that in mind, here are two S&P 500 stocks positioned to outperform and one that may struggle.
One Stock to Sell:
STERIS (STE)
Market Cap: $20.9 billion
With a mission critical role in preventing healthcare-associated infections, STERIS (NYSE:STE) provides infection prevention products, sterilization services, and medical equipment that help healthcare facilities and life science companies maintain sterile environments.
Why Are We Cautious About STE?
- Annual revenue growth of 7.4% over the last two years was below our standards for the healthcare sector
- Adjusted operating margin failed to increase over the last five years, indicating the company couldn’t optimize its expenses
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $214.45 per share, STERIS trades at 18.4x forward P/E. To fully understand why you should be careful with STE, check out our full research report (it’s free).
Two Stocks to Buy:
Airbnb (ABNB)
Market Cap: $97.79 billion
Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ:ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Why Will ABNB Outperform?
- Nights and Experiences Booked have grown by 9.3% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Healthy EBITDA margin of 35.6% shows it’s a well-run company with efficient processes, and its operating leverage amplified its profits over the last few years
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Airbnb’s stock price of $166.09 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.
EQT (EQT)
Market Cap: $33.05 billion
The largest natural gas producer in the United States by daily volume, EQT (NYSE:EQT) produces natural gas and natural gas liquids from wells drilled in the Appalachian Basin.
Why Will EQT Beat the Market?
- Impressive 15.3% annual revenue growth over the last ten years indicates it’s winning market share this cycle
- EBITDA margin expanded by 20.6 percentage points over the last five years as it scaled and became more efficient
- Robust free cash flow margin of 30.8% gives it many options for capital deployment
EQT is trading at $52.63 per share, or 17.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.