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. That said, here are two S&P 500 stocks that could deliver good returns and one best left off your watchlist.
One Stock to Sell:
Rockwell Automation (ROK)
Market Cap: $50.05 billion
One of the first companies to address industrial automation, Rockwell Automation (NYSE: ROK) sells products that help customers extract more efficiency from their machinery.
Why Is ROK Not Exciting?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Projected sales growth of 5.3% for the next 12 months suggests sluggish demand
- Diminishing returns on capital suggest its earlier profit pools are drying up
Rockwell Automation is trading at $450.20 per share, or 31.3x forward P/E. To fully understand why you should be careful with ROK, check out our full research report (it’s free).
Two Stocks to Watch:
Jabil (JBL)
Market Cap: $32.4 billion
With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE: JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.
Why Will JBL Outperform?
- Annual revenue growth of 11.6% over the last two years was superb and indicates its market share increased during this cycle
- Dominant market position is represented by its $35.95 billion in revenue and gives it fixed cost leverage when sales grow
- Share repurchases over the last two years enabled its annual earnings per share growth of 24.4% to outpace its revenue gains
Jabil’s stock price of $308.99 implies a valuation ratio of 17x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Allstate (ALL)
Market Cap: $56.71 billion
Born from a Sears, Roebuck & Co. initiative during the Great Depression with its famous "You're in good hands" slogan, Allstate (NYSE: ALL) is one of America's largest personal property and casualty insurers, offering protection for autos, homes, and personal property.
Why Do We Like ALL?
- Pre-tax profits and efficiency rose over the last two years as it benefited from some fixed cost leverage
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 83.7% exceeded its revenue gains over the last two years
- Annual book value per share growth of 40.9% over the last two years was superb and indicates its capital strength increased during this cycle
At $223.49 per share, Allstate trades at 1.7x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
