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.
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 is positioned to outperform and two that may struggle.
Two Stocks to Sell:
Brown-Forman (BF.B)
Market Cap: $13.07 billion
Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE: BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.
Why Does BF.B Fall Short?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Forecasted revenue decline of 3.7% for the upcoming 12 months implies demand will fall off a cliff
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 6 percentage points
At $27.50 per share, Brown-Forman trades at 14.6x forward P/E. Dive into our free research report to see why there are better opportunities than BF.B.
Bank of America (BAC)
Market Cap: $386.1 billion
Tracing its roots back to 1784 and now serving approximately 67 million consumer and small business clients, Bank of America (NYSE: BAC) is a global financial institution that provides banking, investing, asset management, and risk management products and services to individuals, businesses, and governments.
Why Are We Hesitant About BAC?
- Annual sales growth of 2.1% over the last two years lagged behind its banking peers as its large revenue base made it difficult to generate incremental demand
- Scale is a double-edged sword because it limits the firm’s growth potential compared to its smaller competitors, as reflected in its below-average annual net interest income increases of 4.8% for the last five years
- Inferior net interest margin of 2% means it must compensate for lower profitability through increased loan originations
Bank of America is trading at $52.22 per share, or 1.4x forward P/B. Check out our free in-depth research report to learn more about why BAC doesn’t pass our bar.
One Stock to Watch:
Republic Services (RSG)
Market Cap: $70.78 billion
Processing several million tons of recyclables annually, Republic (NYSE: RSG) provides waste management services for residences, companies, and municipalities.
Why Could RSG Be a Winner?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 9.8% annual sales growth over the last five years
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 18.8%, and its rise over the last five years was fueled by some leverage on its fixed costs
- Robust free cash flow margin of 13.5% gives it many options for capital deployment
Republic Services’s stock price of $226.71 implies a valuation ratio of 31.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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