1 S&P 500 Stock to Own for Decades and 2 That Underwhelm

While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.

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 could deliver good returns and two best left off your watchlist.

Two Stocks to Sell:

General Dynamics (GD)

Market Cap: $91.2 billion

Creator of the famous M1 Abrahms tank, General Dynamics (NYSE:GD) develops aerospace, marine systems, combat systems, and information technology products.

Why Do We Think Twice About GD?

1. Backlog growth averaged a weak 3.4% over the past two years, suggesting it may need to tweak its product roadmap or go-to-market strategy
2. Estimated sales growth of 4% for the next 12 months implies demand will slow from its two-year trend
3. Free cash flow margin dropped by 1.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up

General Dynamics’s stock price of $341.35 implies a valuation ratio of 20.6x forward P/E. Dive into our free research report to see why there are better opportunities than GD.

Ball (BALL)

Market Cap: $13.09 billion

Started with a $200 loan in 1880, Ball (NYSE:BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.

Why Should You Dump BALL?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. High input costs result in an inferior gross margin of 21.5% that must be offset through higher volumes
3. Low free cash flow margin of -0.7% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Ball is trading at $49.58 per share, or 12.6x forward P/E. Read our free research report to see why you should think twice about including BALL in your portfolio.

One Stock to Buy:

Copart (CPRT)

Market Cap: $37.67 billion

Starting as a single salvage yard in California in 1982, Copart (NASDAQ:CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.

Why Will CPRT Outperform?

1. Annual revenue growth of 15.7% over the past five years was outstanding, reflecting market share gains this cycle
2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 18.1% annually, topping its revenue gains
3. CPRT is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business

At $39.43 per share, Copart trades at 22.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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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