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 could be in trouble.
Two Stocks to Sell:
Hershey (HSY)
Market Cap: $38.3 billion
Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE:HSY) is an iconic company known for its chocolate products.
Why Does HSY Give Us Pause?
- Falling unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Efficiency has decreased over the last year as its operating margin fell by 4.4 percentage points
- Earnings per share were flat over the last three years and fell short of the peer group average
At $188.94 per share, Hershey trades at 33.4x forward P/E. Dive into our free research report to see why there are better opportunities than HSY.
Moderna (MRNA)
Market Cap: $10.69 billion
Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ:MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases.
Why Should You Sell MRNA?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 46.3% annually over the last two years
- Free cash flow margin shrank by 242.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Moderna is trading at $27.42 per share, or 5.7x forward price-to-sales. Check out our free in-depth research report to learn more about why MRNA doesn’t pass our bar.
One Stock to Watch:
PTC (PTC)
Market Cap: $25.73 billion
Used to design the Airbus A380 and Boeing 787 Dreamliner commercial airplanes, PTC’s (NASDAQ:PTC) software-as-service platform helps engineers and designers create and test products before manufacturing.
Why Does PTC Stand Out?
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Excellent operating margin of 30% highlights the efficiency of its business model, and its profits increased over the last year as it scaled
- PTC is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
PTC’s stock price of $214.79 implies a valuation ratio of 9.3x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
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