1 S&P 500 Stock to Own for Decades and 2 We Avoid

The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.

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 is one S&P 500 stock that is leading the market forward and two that may struggle.

Two Stocks to Sell:

CoStar (CSGP)

Market Cap: $37.98 billion

With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ:CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K.

Why Do We Think Twice About CSGP?

1. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 3.7% annually
2. 13.8 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
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $88.95 per share, CoStar trades at 83.6x forward P/E. If you’re considering CSGP for your portfolio, see our FREE research report to learn more.

AIG (AIG)

Market Cap: $44.33 billion

With roots dating back to 1919 when it began as a small insurance agency in Shanghai, China, AIG (NYSE:AIG) is a global insurance organization that provides commercial and personal insurance solutions to businesses and individuals across more than 200 countries.

Why Is AIG Risky?

1. Insurance offerings face significant market challenges this cycle as net premiums earned contracted by 6.6% annually over the last five years
2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 1% annually
3. Book value per share stagnated over the last five years, limiting its ability to leverage its balance sheet to make additional investments

AIG’s stock price of $80.69 implies a valuation ratio of 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than AIG.

One Stock to Buy:

Chipotle (CMG)

Market Cap: $59.05 billion

Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE:CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.

Why Are We Bullish on CMG?

1. Fast expansion of new restaurants to reach markets with few or no locations is justified by its same-store sales growth
2. Same-store sales growth over the past two years shows it’s successfully drawing diners into its restaurants
3. Massive revenue base of $11.58 billion makes it a household name that influences purchasing decisions

Chipotle is trading at $44.07 per share, or 33.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% 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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