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 positioned to outperform and two that may struggle.
Two Stocks to Sell:
F5 (FFIV)
Market Cap: $16.99 billion
Initially started as a hardware appliances company in the late 1990s, F5 (NASDAQ: FFIV) makes software that helps large enterprises ensure their web applications are always available by distributing network traffic and protecting them from cyberattacks.
Why Does FFIV Fall Short?
- Annual revenue growth of 3.5% over the last three years was well below our standards for the software sector
- Challenges in acquiring and retaining long-term customers were reflected in its average ARR declines of 8.3% over the last year
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.6%
F5’s stock price of $295.75 implies a valuation ratio of 5.7x forward price-to-sales. To fully understand why you should be careful with FFIV, check out our full research report (it’s free).
Globe Life (GL)
Market Cap: $10.23 billion
With roots dating back to 1900 and a rebranding from Torchmark Corporation in 2019, Globe Life (NYSE: GL) is an insurance holding company that offers life insurance, supplemental health insurance, and annuity products through various distribution channels.
Why Are We Hesitant About GL?
- Muted 4.3% annual net premiums earned growth over the last two years shows its business lagged behind its insurance peers
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 18.7% annually
- Muted 1.3% annual book value per share growth over the last five years shows its capital generation lagged behind its insurance peers
At $123.89 per share, Globe Life trades at 1.7x forward P/B. If you’re considering GL for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Cigna (CI)
Market Cap: $87.17 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 Does CI Stand Out?
- Market share has increased this cycle as its 18.1% annual revenue growth over the last two years was exceptional
- Massive revenue base of $255.3 billion gives it meaningful leverage when negotiating reimbursement rates
- Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 9.1% annually
Cigna is trading at $326.31 per share, or 10.6x 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
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
