1 S&P 500 Stock with Impressive Fundamentals and 2 We Question

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. Keeping that in mind, here is one S&P 500 stock that is leading the market forward and two that could be in trouble.

Two Stocks to Sell:

onsemi (ON)

Market Cap: $20.35 billion

Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ:ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.

Why Does ON Fall Short?

1. Sales tumbled by 12.5% annually over the last two years, showing market trends are working against its favor during this cycle
2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
3. Gross margin of 42.5% reflects its high production costs

onsemi’s stock price of $49.77 implies a valuation ratio of 19.1x forward P/E. If you’re considering ON for your portfolio, see our FREE research report to learn more.

NVR (NVR)

Market Cap: $22.72 billion

Known for its unique land acquisition strategy, NVR (NYSE:NVR) is a respected homebuilder and mortgage company in the United States.

Why Does NVR Give Us Pause?

1. Sales pipeline suggests its future revenue growth may not meet our standards as its average backlog growth of 1.3% for the past two years was weak
2. Sales are projected to tank by 6.9% over the next 12 months as demand evaporates
3. Diminishing returns on capital suggest its earlier profit pools are drying up

NVR is trading at $7,907 per share, or 18.5x forward P/E. Dive into our free research report to see why there are better opportunities than NVR.

One Stock to Buy:

AMD (AMD)

Market Cap: $261.7 billion

Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.

Why Do We Love AMD?

1. Annual revenue growth of 31.1% over the last five years was superb and indicates its market share increased during this cycle
2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 22.4%
3. Earnings per share have massively outperformed its peers over the last five years, increasing by 32% annually

At $160.58 per share, AMD trades at 32.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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-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

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