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. Keeping that in mind, here are two S&P 500 stocks positioned to outperform and one that could be in trouble.

One Stock to Sell:

Hershey (HSY)

Market Cap: $42.15 billion

Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE: HSY) is an iconic company known for its chocolate products.

Why Do We Think Twice About HSY?

1. Declining unit sales over the past two years suggest it might have to lower prices to stimulate growth
2. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 13.5 percentage points
3. Incremental sales over the last three years were much less profitable as its earnings per share fell by 9.5% annually while its revenue grew

At $207.91 per share, Hershey trades at 24.5x forward P/E. Check out our free in-depth research report to learn more about why HSY doesn’t pass our bar.

Two Stocks to Buy:

Airbnb (ABNB)

Market Cap: $76.02 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 Do We Love ABNB?

1. Nights and Experiences Booked have grown by 9.1% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
2. Highly efficient business model is illustrated by its impressive 35.7% EBITDA margin
3. ABNB is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Airbnb is trading at $126.43 per share, or 14.1x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

Humana (HUM)

Market Cap: $21.93 billion

With over 80% of its revenue derived from federal government contracts, Humana (NYSE: HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.

Why Will HUM Outperform?

1. Solid 12.4% annual revenue growth over the last two years indicates its offering’s solve complex business issues
2. Enormous revenue base of $129.8 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
3. Industry-leading 33.1% return on capital demonstrates management’s skill in finding high-return investments

Humana’s stock price of $203.25 implies a valuation ratio of 19.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.