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.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. That said, here is one S&P 500 stock that could deliver good returns and two that may struggle.
Two Stocks to Sell:
Wynn Resorts (WYNN)
Market Cap: $10.03 billion
Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ: WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services.
Why Do We Think WYNN Will Underperform?
- Sales trends were unexciting over the last two years as its 2.3% annual growth was below the typical consumer discretionary company
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 10.2% for the last two years
- High net-debt-to-EBITDA ratio of 6× could force the company to raise capital on unfavorable terms if market conditions deteriorate
Wynn Resorts’s stock price of $97.94 implies a valuation ratio of 22x forward P/E. Dive into our free research report to see why there are better opportunities than WYNN.
Packaging Corporation of America (PKG)
Market Cap: $20.72 billion
Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.
Why Do We Think Twice About PKG?
- Weak unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 5.2 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
At $233.64 per share, Packaging Corporation of America trades at 21.1x forward P/E. Check out our free in-depth research report to learn more about why PKG doesn’t pass our bar.
One Stock to Watch:
Intuit (INTU)
Market Cap: $80.64 billion
Originally named after its founding product "Intuitive for the first-time user," Intuit (NASDAQ: INTU) provides financial management software and services including TurboTax, QuickBooks, Credit Karma, and Mailchimp to help consumers and small businesses manage their finances.
Why Are We Fans of INTU?
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 27.5%, and its operating leverage amplified its profits over the last year
- Robust free cash flow margin of 36.9% gives it many options for capital deployment
Intuit is trading at $293.36 per share, or 3.3x forward price-to-sales. Is now a good time to buy? See for yourself in our full 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
