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.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. Keeping that in mind, here is one S&P 500 stock that is leading the market forward and two best left off your watchlist.
Two Stocks to Sell:
Snap-on (SNA)
Market Cap: $17.41 billion
Founded in 1920, Snap-on (NYSE: SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military.
Why Do We Avoid SNA?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Free cash flow margin dropped by 4.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Snap-on’s stock price of $333.81 implies a valuation ratio of 17.4x forward P/E. If you’re considering SNA for your portfolio, see our FREE research report to learn more.
KeyCorp (KEY)
Market Cap: $19.98 billion
Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE: KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.
Why Are We Cautious About KEY?
- Muted 2.4% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Efficiency ratio worsened by 33.8 percentage points over the last four years as its sales cratered
- Sales were less profitable over the last five years as its earnings per share fell by 13.5% annually, worse than its revenue declines
KeyCorp is trading at $18.27 per share, or 1.2x forward P/B. Read our free research report to see why you should think twice about including KEY in your portfolio.
One Stock to Watch:
Autodesk (ADSK)
Market Cap: $61.4 billion
Founded in 1982 by John Walker and growing into one of the industry's behemoths, Autodesk (NASDAQ: ADSK) makes computer-aided design (CAD) software for engineering, construction, and architecture companies.
Why Do We Like ADSK?
- Average billings growth of 23.1% over the last year enhances its liquidity and shows there is steady demand for its products
- Software is difficult to replicate at scale and results in a best-in-class gross margin of 92%
- Healthy operating margin of 20.3% shows it’s a well-run company with efficient processes
At $287 per share, Autodesk trades at 8.7x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking 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-small-cap company Comfort Systems (+782% 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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