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.
Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. 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:
Nordson (NDSN)
Market Cap: $18.28 billion
Founded in 1954, Nordson Corporation (NASDAQ: NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings.
Why Does NDSN Give Us Pause?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Anticipated sales growth of 6.4% for the next year implies demand will be shaky
- Waning returns on capital imply its previous profit engines are losing steam
At $328.50 per share, Nordson trades at 25.8x forward P/E. Check out our free in-depth research report to learn more about why NDSN doesn’t pass our bar.
Two Stocks to Buy:
Eli Lilly (LLY)
Market Cap: $1.05 trillion
Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE: LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.
Why Will LLY Outperform?
- Market share has increased this cycle as its 43.1% annual revenue growth over the last two years was exceptional
- Adjusted operating margin expanded by 18.7 percentage points over the last two years as it scaled and became more efficient
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Eli Lilly’s stock price of $1,177 implies a valuation ratio of 29.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Moody's (MCO)
Market Cap: $80.4 billion
Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE: MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.
Why Should You Buy MCO?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 11.6% annual sales growth over the last two years
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 21.3% exceeded its revenue gains over the last two years
- Industry-leading 59.9% return on equity demonstrates management’s skill in finding high-return investments
Moody's is trading at $463.53 per share, or 25.9x 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
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.
