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 are two S&P 500 stocks that could deliver good returns and one best left off your watchlist.
One Stock to Sell:
Honeywell (HON)
Market Cap: $141.8 billion
Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ: HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.
Why Do We Avoid HON?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 4 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Honeywell’s stock price of $224.64 implies a valuation ratio of 20.4x forward P/E. Read our free research report to see why you should think twice about including HON in your portfolio.
Two Stocks to Buy:
Meta (META)
Market Cap: $1.54 trillion
Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ: META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.
Why Are We Bullish on META?
- Customers are spending more money on its platform as its average revenue per user has increased by 29.6% annually over the last two years
- Healthy EBITDA margin of 61.8% shows it’s a well-run company with efficient processes, and its operating leverage amplified its profits over the last few years
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
At $608.52 per share, Meta trades at 10.3x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
APA Corporation (APA)
Market Cap: $13.55 billion
Operating in three continents with a history stretching back to 1954, APA Corporation (NASDAQ: APA) explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the U.S., Egypt, and the U.K. North Sea.
Why Do We Love APA?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 3% annual sales growth over the last ten years
- Unparalleled revenue scale of $8.15 billion gives it advantageous pricing and terms with suppliers
- Strong free cash flow margin of 17.5% enables it to reinvest or return capital consistently
APA Corporation is trading at $38.31 per share, or 6.7x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
