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 leading the market forward and one that could be in trouble.
One Stock to Sell:
Keurig Dr Pepper (KDP)
Market Cap: $42.85 billion
Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ: KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.
Why Do We Think Twice About KDP?
- Free cash flow margin has stayed in place over the last year
- ROIC of 5.7% reflects management’s challenges in identifying attractive investment opportunities
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Keurig Dr Pepper is trading at $31.52 per share, or 12.9x forward P/E. Read our free research report to see why you should think twice about including KDP in your portfolio.
Two Stocks to Watch:
AMD (AMD)
Market Cap: $823.1 billion
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ: AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Does AMD Stand Out?
- Annual revenue growth of 25.4% over the last five years was superb and indicates its market share increased during this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 65.5%
- Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 22.6% annually
At $503.99 per share, AMD trades at 44.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Omnicom Group (OMC)
Market Cap: $21.91 billion
With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE: OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.
Why Will OMC Beat the Market?
- Market share has increased this cycle as its 21.6% annual revenue growth over the last two years was exceptional
- Massive revenue base of $22.37 billion makes it a well-known name that influences purchasing decisions
- Free cash flow margin jumped by 5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Omnicom Group’s stock price of $79.86 implies a valuation ratio of 7.9x forward P/E. 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
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is 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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
