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 are two S&P 500 stocks leading the market forward and one that may struggle.
One Stock to Sell:
Dollar Tree (DLTR)
Market Cap: $21.23 billion
A treasure hunt because there’s no guarantee of consistent product selection, Dollar Tree (NASDAQ:DLTR) is a discount retailer that sells general merchandise and select packaged food at extremely low prices.
Why Are We Cautious About DLTR?
- Annual sales declines of 11.9% for the past three years show its products struggled to connect with the market
- Gross margin of 36.5% is below its competitors, leaving less money for marketing and promotions
- ROIC of 6.9% reflects management’s challenges in identifying attractive investment opportunities
At $113.43 per share, Dollar Tree trades at 16.7x forward P/E. If you’re considering DLTR for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
BNY (BNY)
Market Cap: $101.4 billion
Tracing its roots back to 1784 when it was founded by Alexander Hamilton, BNY (NYSE:BNY) is a global financial institution that provides asset servicing, wealth management, and investment services to institutions, corporations, and high-net-worth individuals.
Why Is BNY Interesting?
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Annual tangible book value per share growth of 13.3% over the last two years was superb and indicates its capital strength increased during this cycle
BNY is trading at $150.26 per share, or 15.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Progressive (PGR)
Market Cap: $118.1 billion
Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE:PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.
What Makes PGR Stand Out?
- Market share has increased this cycle as its 15.9% annual revenue growth over the last two years was exceptional
- Market penetration was impressive this cycle as its net premiums earned expanded by 14.9% annually over the last two years
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Progressive’s stock price of $204.25 implies a valuation ratio of 3.4x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.