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 are two S&P 500 stocks that could deliver good returns and one best left off your watchlist.
One stock to sell:
International Paper (IP)
Market Cap: $17.84 billion
Established in 1898, International Paper (NYSE: IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.
Why Are We Out on IP?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 2.5% over the last five years was below our standards for the industrials sector
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 16% annually
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
International Paper’s stock price of $33.84 implies a valuation ratio of 14.9x forward P/E. Read our free research report to see why you should think twice about including IP in your portfolio.
Two stocks to buy:
Axon (AXON)
Market Cap: $33.68 billion
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Is AXON a Top Pick?
- ARR trends over the past two years show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Market share will likely rise over the next 12 months as its expected revenue growth of 32% is robust
- Earnings per share grew by 23.2% annually over the last two years and trumped its peers
At $414.90 per share, Axon trades at 45.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Mastercard (MA)
Market Cap: $554.7 billion
Recognizable by its iconic "Priceless" advertising campaign that has run in over 120 countries, Mastercard (NYSE: MA) operates a global payments network that connects consumers, financial institutions, merchants, and businesses, enabling electronic transactions and providing payment solutions.
Why Should You Buy MA?
- Annual revenue growth of 16.1% over the last five years was superb and indicates its market share increased during this cycle
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 182% return on equity demonstrates management’s skill in finding high-return investments
Mastercard is trading at $633.87 per share, or 29.2x 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
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.
