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 leading the market forward and one that could be in trouble.
One Stock to Sell:
RTX (RTX)
Market Cap: $248.1 billion
Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a variety of products and services to the aerospace and defense industries.
Why Do We Think Twice About RTX?
- Estimated sales growth of 5.9% for the next 12 months implies demand will slow from its two-year trend
- Underwhelming 4.7% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $185.74 per share, RTX trades at 26.9x forward P/E. If you’re considering RTX for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
KLA Corporation (KLAC)
Market Cap: $315 billion
Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ: KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.
Why Should You Buy KLAC?
- Market share has increased this cycle as its 15.2% annual revenue growth over the last five years was exceptional
- Healthy operating margin of 40% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage
- Robust free cash flow margin of 30.5% gives it many options for capital deployment
KLA Corporation’s stock price of $261.11 implies a valuation ratio of 54.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Boeing (BA)
Market Cap: $174.7 billion
One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE: BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.
Why Should BA Be on Your Watchlist?
- Products are seeing elevated demand as its unit sales averaged 69.7% growth over the past two years
- Projected revenue growth of 10.6% for the next 12 months suggests its momentum from the last two years will persist
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 47.6% outpaced its revenue gains
Boeing is trading at $222.97 per share, or 570.3x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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 (+1,326% 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.
