1 S&P 500 Stock for Long-Term Investors and 2 Facing Challenges

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. Keeping that in mind, here is one S&P 500 stock that is positioned to outperform and two that may struggle.

Two Stocks to Sell:

VeriSign (VRSN)

Market Cap: $21.84 billion

As the silent guardian of the internet's roadmap, VeriSign (NASDAQ:VRSN) operates the authoritative registry for .com and .net domain names, enabling websites to be found reliably when users type web addresses.

Why Is VRSN Not Exciting?

1. Muted 4.8% annual revenue growth over the last two years shows its demand lagged behind its software peers
2. Projected sales growth of 4.9% for the next 12 months suggests sluggish demand
3. Operating margin was unchanged over the last year, suggesting it failed to gain leverage on its fixed costs

VeriSign is trading at $230.95 per share, or 12.9x forward price-to-sales. To fully understand why you should be careful with VRSN, check out our full research report (it’s free for active Edge members).

MetLife (MET)

Market Cap: $52.64 billion

Founded in 1863 by a group of New York businessmen during the Civil War era, MetLife (NYSE:MET) is a global financial services company that provides insurance, annuities, employee benefits, and asset management services to individuals and businesses worldwide.

Why Is MET Risky?

1. Net premiums earned contracted by 1.9% annually over the last two years, showing unfavorable market dynamics this cycle
2. Earnings per share lagged its peers over the last two years as they only grew by 13.6% annually
3. Annual book value per share declines of 13% for the past five years show its capital management struggled during this cycle

At $79.85 per share, MetLife trades at 2.1x forward P/B. Read our free research report to see why you should think twice about including MET in your portfolio.

One Stock to Watch:

Humana (HUM)

Market Cap: $34.35 billion

With over 80% of its revenue derived from federal government contracts, Humana (NYSE:HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.

Why Are We Fans of HUM?

1. 12.9% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
2. Dominant market position is represented by its $123 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
3. ROIC punches in at 48.9%, illustrating management’s expertise in identifying profitable investments

Humana’s stock price of $284.20 implies a valuation ratio of 19.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. 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 Tecnoglass (+1,754% 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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