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.
Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. That said, here is one S&P 500 stock that is leading the market forward and two that could be in trouble.
Two Stocks to Sell:
NXP Semiconductors (NXPI)
Market Cap: $57.8 billion
Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.
Why Are We Cautious About NXPI?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.1% annually over the last two years
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 5.2%
- Free cash flow margin dropped by 8.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
NXP Semiconductors’s stock price of $229.65 implies a valuation ratio of 18.3x forward P/E. Read our free research report to see why you should think twice about including NXPI in your portfolio.
Williams-Sonoma (WSM)
Market Cap: $24.93 billion
Started in 1956 as a store specializing in French cookware, Williams-Sonoma (NYSE: WSM) is a specialty retailer of higher-end kitchenware, home goods, and furniture.
Why Are We Wary of WSM?
- Store closures and disappointing same-store sales suggest demand is sluggish and it’s rightsizing its operations
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Free cash flow margin shrank by 5.3 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
Williams-Sonoma is trading at $204 per share, or 23.7x forward P/E. Dive into our free research report to see why there are better opportunities than WSM.
One Stock to Watch:
Corpay (CPAY)
Market Cap: $22.64 billion
Formerly known as FLEETCOR until its 2024 rebrand, Corpay (NYSE: CPAY) provides specialized payment solutions for businesses to manage vehicle expenses, corporate payments, and lodging costs with enhanced control and reporting capabilities.
Why Are We Positive On CPAY?
- Decent 10.2% annual revenue growth over the last five years beat most of its peers, showing customers find value in its products and services
- Share repurchases over the last five years enabled its annual earnings per share growth of 11.6% to outpace its revenue gains
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $320.68 per share, Corpay trades at 14.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 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 Kadant (+351% 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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