3 S&P 500 Stocks We Steer Clear Of

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.

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 are three S&P 500 stocks that don’t make the cut and some better choices instead.

F5 (FFIV)

Market Cap: $14.81 billion

Originally named after the F5 tornado, the most powerful on the meteorological scale, F5 (NASDAQ:FFIV) provides security and delivery solutions that protect applications across cloud, data center, and edge environments for large organizations.

Why Is FFIV Risky?

1. Customers were hesitant to make long-term commitments to its software as its ARR averaged 7.1% declines over the last year
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4.5%
3. Static operating margin over the last year shows it couldn’t become more efficient

F5’s stock price of $262.75 implies a valuation ratio of 5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than FFIV.

Hasbro (HAS)

Market Cap: $14.25 billion

Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ:HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.

Why Are We Out on HAS?

1. Annual revenue declines of 3% over the last five years indicate problems with its market positioning
2. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 8.1% annually
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $101.79 per share, Hasbro trades at 18.8x forward P/E. If you’re considering HAS for your portfolio, see our FREE research report to learn more.

United Airlines (UAL)

Market Cap: $35.38 billion

Founded in 1926, United Airlines Holdings (NASDAQ:UAL) operates a global airline network, providing passenger and cargo air transportation services across domestic and international routes.

Why Do We Pass on UAL?

1. Number of revenue passenger miles has disappointed over the past two years, indicating weak demand for its offerings
2. Operating margin of 8.4% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
3. Free cash flow margin is projected to show no improvement next year

United Airlines is trading at $109.38 per share, or 8.5x forward P/E. Read our free research report to see why you should think twice about including UAL in your portfolio.

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).

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.