1 S&P 500 Stock for Long-Term Investors 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.

Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. That said, here is one S&P 500 stock that could deliver good returns and two that may struggle.

Two Stocks to Sell:

Verizon (VZ)

Market Cap: $188.1 billion

Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE:VZ) is a telecom giant providing a range of communications and internet services.

Why Should You Dump VZ?

1. Customer growth was choppy over the past two years, suggesting that increasing competition is causing challenges in landing new contracts
2. Free cash flow margin is projected to show no improvement next year
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Verizon is trading at $44.43 per share, or 9.1x forward P/E. Read our free research report to see why you should think twice about including VZ in your portfolio.

FactSet (FDS)

Market Cap: $9.23 billion

Founded in 1978 when financial data was still primarily delivered through paper reports, FactSet (NYSE:FDS) provides financial data, analytics, and technology solutions that investment professionals use to research, analyze, and manage their portfolios.

Why Are We Cautious About FDS?

1. Annual revenue growth of 5.5% over the last two years was below our standards for the financials sector
2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 8.1% annually

At $247.83 per share, FactSet trades at 14.3x forward P/E. Check out our free in-depth research report to learn more about why FDS doesn’t pass our bar.

One Stock to Buy:

Humana (HUM)

Market Cap: $22.52 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 Will HUM Outperform?

1. Annual revenue growth of 12.8% over the last two years beat the sector average and underscores the unique value of its offerings
2. Enormous revenue base of $126.3 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Humana’s stock price of $186.71 implies a valuation ratio of 14.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.