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.
Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. That said, here is one S&P 500 stock that is positioned to outperform and two that may struggle.
Two Stocks to Sell:
Ball (BALL)
Market Cap: $16.37 billion
Started with a $200 loan in 1880, Ball (NYSE: BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.
Why Are We Out on BALL?
- Annual sales declines of 3.1% for the past two years show its products and services struggled to connect with the market during this cycle
- Gross margin of 21.4% reflects its high production costs
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Ball’s stock price of $61.54 implies a valuation ratio of 15.6x forward P/E. Check out our free in-depth research report to learn more about why BALL doesn’t pass our bar.
MetLife (MET)
Market Cap: $45.62 billion
Founded in 1863 by a group of New York businessmen during the Civil War era, MetLife (NYSE: MET) is a global financial services company that provides insurance, annuities, employee benefits, and asset management services to individuals and businesses worldwide.
Why Should You Sell MET?
- Large revenue base constrains its growth potential, as seen in its unexciting 2.8% annualized increases in net premiums earned over the last five years fell below our expectations for the insurance sector
- Earnings per share lagged its peers over the last two years as they only grew by 10.3% annually
- Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 12.3% annually over the last five years
MetLife is trading at $69.53 per share, or 1.6x forward P/B. If you’re considering MET for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Carvana (CVNA)
Market Cap: $66 billion
Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Why Should CVNA Be on Your Watchlist?
- Annual revenue growth of 14.3% over the last three years beat the sector average and underscores the popularity of its platform
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 39.7% outpaced its revenue gains
- Free cash flow margin grew by 17.9 percentage points over the last few years, giving the company more chips to play with
At $305.50 per share, Carvana trades at 26x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
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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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
