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 is one S&P 500 stock that is leading the market forward and two that could be in trouble.
Two Stocks to Sell:
Warner Bros. Discovery (WBD)
Market Cap: $72.56 billion
Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ:WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.
Why Should You Sell WBD?
- The company has faced growth challenges as its 5.7% annual revenue increases over the last five years fell short of other consumer discretionary companies
- Poor free cash flow margin of 8.4% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Improving returns on capital suggest management is identifying more profitable investments
Warner Bros. Discovery is trading at $28.62 per share, or 156.7x forward P/E. Read our free research report to see why you should think twice about including WBD in your portfolio.
CBRE (CBRE)
Market Cap: $43.94 billion
Established in 1906, CBRE (NYSE:CBRE) is one of the largest commercial real estate services firms in the world.
Why Do We Avoid CBRE?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 11.8% over the last five years was below our standards for the consumer discretionary sector
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.5% for the last two years
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
CBRE’s stock price of $150.60 implies a valuation ratio of 18.9x forward P/E. If you’re considering CBRE for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
State Street (STT)
Market Cap: $53 billion
Dating back to 1792 when Boston's Long Wharf was the center of global shipping and trade, State Street (NYSE:STT) provides custody, investment management, and other financial services to institutional investors like pension funds, asset managers, and central banks worldwide.
Why Do We Like STT?
- Share repurchases over the last two years enabled its annual earnings per share growth of 25.2% to outpace its revenue gains
- Acceptable return on equity suggests management generated shareholder value by investing in profitable projects
At $192.62 per share, State Street trades at 13.3x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.