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Wall Street JournalEN
2 S&P 500 Stocks Worth Investigating and 1 We Brush Off
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. Keeping that in mind, here are two S&P 500 stocks that could deliver good returns and one that may struggle.
One Stock to Sell:
Clorox (CLX)
Market Cap: $12.92 billion
Founded in 1913 with bleach as the sole product offering, Clorox (NYSE:CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.
Why Does CLX Fall Short?
- Sales tumbled by 1.3% annually over the last three years, showing consumer trends are working against its favor
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Sales are projected to tank by 1.3% over the next 12 months as its demand continues evaporating
Clorox is trading at $105.87 per share, or 16.4x forward P/E. To fully understand why you should be careful with CLX, check out our full research report (it’s free for active Edge members).
Two Stocks to Watch:
Airbnb (ABNB)
Market Cap: $71.85 billion
Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ:ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Why Will ABNB Beat the Market?
- Nights and Experiences Booked are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Excellent EBITDA margin of 36.4% highlights the efficiency of its business model, and its profits increased over the last few years as it scaled
- ABNB is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Airbnb’s stock price of $118.51 implies a valuation ratio of 15.9x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Incyte (INCY)
Market Cap: $19.91 billion
Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.
Why Do We Like INCY?
- Annual revenue growth of 15.5% over the last two years beat the sector average and underscores the unique value of its offerings
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 60.8% exceeded its revenue gains over the last five years
- Free cash flow margin increased by 5.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $101.41 per share, Incyte trades at 13.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).
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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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