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. Keeping that in mind, here are two S&P 500 stocks positioned to outperform and one that could be in trouble.
One Stock to Sell:
Moderna (MRNA)
Market Cap: $78.76 billion
Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ: MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases.
Why Do We Avoid MRNA?
- Sales tumbled by 20.5% annually over the last five years, showing market trends are working against it during this cycle
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 24.5% annually, worse than its revenue
- Free cash flow margin shrank by 95.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Moderna is trading at $197.55 per share, or 38.7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MRNA.
Two Stocks to Watch:
Marvell Technology (MRVL)
Market Cap: $220.9 billion
Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.
Why Do We Like MRVL?
- Market share has increased this cycle as its 33.8% annual revenue growth over the last two years was exceptional
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 60.8%
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
Marvell Technology’s stock price of $252.40 implies a valuation ratio of 48x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Yum! Brands (YUM)
Market Cap: $37.74 billion
Spun off as an independent company from PepsiCo, Yum! Brands (NYSE: YUM) is a multinational corporation that owns KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill.
Why Is YUM Interesting?
- Aggressive expansion of new stores reflects an offensive push to quickly grow and sell in markets where it has few or no locations
- Healthy operating margin of 31% shows it’s a well-run company with efficient processes
- Strong free cash flow margin of 19.3% enables it to reinvest or return capital consistently
At $137.65 per share, Yum! Brands trades at 21.6x forward P/E. Is now the right time to buy? Find out 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.
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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.
