1 S&P 500 Stock Worth Investigating and 2 We Brush Off

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.

Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. That said, here is one S&P 500 stock that is positioned to outperform and two best left off your watchlist.

Two Stocks to Sell:

Darden (DRI)

Market Cap: $23.13 billion

Founded in 1968 as Red Lobster, Darden (NYSE:DRI) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Why Do We Think Twice About DRI?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 6.4% for the last six years
2. Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
3. Gross margin of 21.6% is below its competitors, leaving less money for marketing and promotions

At $198.20 per share, Darden trades at 18x forward P/E. Dive into our free research report to see why there are better opportunities than DRI.

Ford (F)

Market Cap: $55.03 billion

Established to make automobiles accessible to a broader segment of the population, Ford (NYSE:F) designs, manufactures, and sells a variety of automobiles, trucks, and electric vehicles.

Why Do We Avoid F?

1. Flat vehicles sold over the past two years suggest it might have to lower prices to accelerate growth
2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 22.5% annually
3. High net-debt-to-EBITDA ratio of 9× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Ford is trading at $13.75 per share, or 10.7x forward P/E. To fully understand why you should be careful with F, check out our full research report (it’s free).

One Stock to Watch:

Cincinnati Financial (CINF)

Market Cap: $25.35 billion

Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ:CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states.

Why Does CINF Catch Our Eye?

1. Market penetration was impressive this cycle as its net premiums earned expanded by 12.1% annually over the last two years
2. Share repurchases over the last five years enabled its annual earnings per share growth of 21.6% to outpace its revenue gains
3. Impressive 20.8% annual book value per share growth over the last two years indicates it’s building equity value this cycle

Cincinnati Financial’s stock price of $162.52 implies a valuation ratio of 1.6x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

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 9 Market-Beating Stocks. 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).

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