2 S&P 500 Stocks on Our Watchlist and 1 We Avoid

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.

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 leading the market forward and one that could be in trouble.

One Stock to Sell:

Verisk (VRSK)

Market Cap: $30.31 billion

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Why Are We Cautious About VRSK?

1. 2% annual revenue growth over the last five years was slower than its business services peers
2. Earnings growth underperformed the sector average over the last five years as its EPS grew by just 7.2% annually

Verisk’s stock price of $217.12 implies a valuation ratio of 29.4x forward P/E. Read our free research report to see why you should think twice about including VRSK in your portfolio.

Two Stocks to Watch:

DoorDash (DASH)

Market Cap: $88.19 billion

Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NYSE:DASH) operates an on-demand food delivery platform.

Why Are We Bullish on DASH?

1. Has the opportunity to boost monetization through new features and premium offerings as its orders have grown by 20% annually over the last two years
2. Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 1,009% outpaced its revenue gains
3. Free cash flow margin expanded by 12.6 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends

At $204.08 per share, DoorDash trades at 26.4x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

TJX (TJX)

Market Cap: $166.4 billion

Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE:TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.

Why Is TJX Interesting?

1. Comparable store sales rose by 4% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
2. Massive revenue base of $58.98 billion makes up for its weaker gross margin and makes it a household name that influences purchasing decisions
3. ROIC punches in at 27.9%, illustrating management’s expertise in identifying profitable investments, and its returns are growing as it capitalizes on even better market opportunities

TJX is trading at $149.61 per share, or 29.4x 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

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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.