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.
Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. Keeping that in mind, here are two S&P 500 stocks that could deliver good returns and one best left off your watchlist.
One Stock to Sell:
Qualcomm (QCOM)
Market Cap: $169.3 billion
Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ: QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.
Why Are We Wary of QCOM?
- Annual revenue growth of 8.6% over the last two years was above the sector average and underscores its products and services value to customers
- Forecasted revenue decline of 2.8% for the upcoming 12 months implies demand will fall off a cliff
- Efficiency has decreased over the last five years as its operating margin fell by 12.7 percentage points
Qualcomm is trading at $158.15 per share, or 17.3x forward P/E. If you’re considering QCOM for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Boeing (BA)
Market Cap: $166.3 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 Is BA Interesting?
- Average unit sales growth of 60.4% over the past two years reflects steady demand for its products
- Estimated revenue growth of 12.3% for the next 12 months implies its momentum over the last two years will continue
- Additional sales over the last two years increased its profitability as the 48.1% annual growth in its earnings per share outpaced its revenue
Boeing’s stock price of $211.26 implies a valuation ratio of 176.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Leidos (LDOS)
Market Cap: $17.37 billion
Formed through the split of IT services company SAIC, Leidos (NYSE: LDOS) offers technology and engineering solutions such as military training systems for the defense, civil, and health markets.
Why Does LDOS Stand Out?
- Average backlog growth of 15.9% over the past two years shows it has a steady sales pipeline that will drive future orders
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.8% exceeded its revenue gains over the last two years
- Free cash flow margin expanded by 6.5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $138.67 per share, Leidos trades at 11.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
