2 S&P 500 Stocks with Exciting Potential and 1 We Brush Off

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 are two S&P 500 stocks that could deliver good returns and one best left off your watchlist.

One Stock to Sell:

Best Buy (BBY)

Market Cap: $13.64 billion

With humble beginnings as a stereo equipment seller, Best Buy (NYSE:BBY) now sells a broad selection of consumer electronics, appliances, and home office products.

Why Do We Steer Clear of BBY?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Commoditized inventory, bad unit economics, and high competition are reflected in its low gross margin of 22.5%
3. Poor expense management has led to an operating margin of 3% that is below the industry average

Best Buy’s stock price of $64.97 implies a valuation ratio of 9.8x forward P/E. If you’re considering BBY for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Teledyne (TDY)

Market Cap: $29.12 billion

Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE:TDY) offers digital imaging and instrumentation products for various industries.

Why Could TDY Be a Winner?

1. Market share has increased this cycle as its 14.7% annual revenue growth over the last five years was exceptional
2. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute

Teledyne is trading at $620.18 per share, or 26.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Marsh & McLennan (MRSH)

Market Cap: $91.27 billion

With roots dating back to 1871 and a presence in over 130 countries, Marsh & McLennan (NYSE:MMC) is a global professional services firm that helps organizations manage risk, strategy, and workforce challenges through its four specialized businesses.

Why Is MRSH a Top Pick?

1. Annual revenue growth of 9.4% over the past five years was outstanding, reflecting market share gains this cycle
2. Unparalleled revenue scale of $26.98 billion gives it an edge in distribution
3. MRSH 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 $186.00 per share, Marsh & McLennan trades at 18.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.