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華爾街日報2 S&P 500 Stocks with Competitive Advantages and 1 We Avoid
While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
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 are two S&P 500 stocks leading the market forward and one that may struggle.
One Stock to Sell:
Pfizer (PFE)
Market Cap: $143.1 billion
With roots dating back to 1849 when two German immigrants opened a fine chemicals business in Brooklyn, Pfizer (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines for a wide range of diseases and conditions.
Why Do We Think Twice About PFE?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- 26.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $25.17 per share, Pfizer trades at 8.6x forward P/E. If you’re considering PFE for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Ross Stores (ROST)
Market Cap: $60.38 billion
Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ:ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.
Why Is ROST on Our Radar?
- Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
- Comparable store sales rose by 3.4% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Ross Stores is trading at $186.60 per share, or 26.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Arthur J. Gallagher (AJG)
Market Cap: $67.6 billion
Founded in 1927 and operating in approximately 130 countries through direct operations and correspondent networks, Arthur J. Gallagher (NYSE:AJG) provides insurance brokerage, reinsurance, consulting, and third-party claims settlement services to businesses and individuals worldwide.
Why Is AJG a Good Business?
- Impressive 16% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings per share grew by 18.7% annually over the last five years, massively outpacing its peers
- Robust free cash flow margin of 18.9% gives it many options for capital deployment
Arthur J. Gallagher’s stock price of $263.25 implies a valuation ratio of 19.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. 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-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.