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. That said, here is one S&P 500 stock that is leading the market forward and two best left off your watchlist.
Two Stocks to Sell:
Intel (INTC)
Market Cap: $204.9 billion
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is a leading manufacturer of computer processors and graphics chips.
Why Do We Pass on INTC?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 6.4% annually over the last five years
- Sales were less profitable over the last five years as its earnings per share fell by 40.7% annually, worse than its revenue declines
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 35.3 percentage points
Intel is trading at $41.67 per share, or 100.6x forward P/E. To fully understand why you should be careful with INTC, check out our full research report (it’s free).
PulteGroup (PHM)
Market Cap: $24.01 billion
Having delivered over 850,000 homes since its founding in 1950, PulteGroup (NYSE: PHM) is one of America's largest homebuilders, constructing single-family homes, townhouses, and condominiums for first-time, move-up, and active adult buyers across 46 markets in 25 states.
Why Are We Cautious About PHM?
- Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 8.2% declines over the past two years
- Forecasted revenue decline of 6.4% for the upcoming 12 months implies demand will fall off a cliff
- Flat earnings per share over the last two years underperformed the sector average
At $125.92 per share, PulteGroup trades at 11x forward P/E. If you’re considering PHM for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Cigna (CI)
Market Cap: $75.84 billion
With roots dating back to 1792 and serving millions of customers across the globe, The Cigna Group (NYSE: CI) provides healthcare services through its Evernorth Health Services and Cigna Healthcare segments, offering pharmacy benefits, specialty care, and medical plans.
Why Are We Fans of CI?
- Impressive 18.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Unparalleled scale of $267.8 billion in revenue enables it to spread administrative costs across a larger membership base
- Earnings per share grew by 8.1% annually over the last five years and topped the peer group average
Cigna’s stock price of $282.95 implies a valuation ratio of 9.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
