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.
Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. That said, here is one S&P 500 stock that is leading the market forward and two that may struggle.
Two Stocks to Sell:
STERIS (STE)
Market Cap: $22.51 billion
With a mission critical role in preventing healthcare-associated infections, STERIS (NYSE: STE) provides infection prevention products, sterilization services, and medical equipment that help healthcare facilities and life science companies maintain sterile environments.
Why Are We Cautious About STE?
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
STERIS is trading at $228.84 per share, or 22.9x forward P/E. To fully understand why you should be careful with STE, check out our full research report (it’s free).
Everest Group (EG)
Market Cap: $14.05 billion
Rebranded from Everest Re in 2023 to reflect its evolution beyond just reinsurance, Everest Group (NYSE: EG) underwrites property and casualty reinsurance and insurance worldwide, serving insurance companies, corporations, and other clients across six continents.
Why Do We Think Twice About EG?
- Estimated sales growth of 2.4% for the next 12 months implies demand will slow from its two-year trend
- Earnings per share fell by 24.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Projected book value per share decline of 100% for the next 12 months points to tough credit quality challenges ahead
At $330.27 per share, Everest Group trades at 0.9x forward P/B. Check out our free in-depth research report to learn more about why EG doesn’t pass our bar.
One Stock to Watch:
Centene (CNC)
Market Cap: $14.93 billion
Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE: CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.
Why Does CNC Stand Out?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 15.5% annual sales growth over the last five years
- Dominant market position is represented by its $169.3 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 14.8% annually
Centene’s stock price of $30.03 implies a valuation ratio of 3.9x 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
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. 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 Kadant (+351% 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
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