1 S&P 500 Stock with Impressive Fundamentals and 2 That Underwhelm

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. Keeping that in mind, here is one S&P 500 stock that is leading the market forward and two that may struggle.

Two Stocks to Sell:

Skyworks Solutions (SWKS)

Market Cap: $9.34 billion

Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.

Why Is SWKS Risky?

1. Annual sales declines of 6.6% for the past two years show its products and services struggled to connect with the market during this cycle
2. Forecasted revenue decline of 8.1% for the upcoming 12 months implies demand will fall even further
3. Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 18.7 percentage points

Skyworks Solutions is trading at $62.70 per share, or 13.8x forward P/E. To fully understand why you should be careful with SWKS, check out our full research report (it’s free).

CoStar (CSGP)

Market Cap: $19.07 billion

With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ:CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K.

Why Is CSGP Not Exciting?

1. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 3.8% annually
2. Free cash flow margin shrank by 17.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $45.28 per share, CoStar trades at 38.5x forward P/E. If you’re considering CSGP for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Hubbell (HUBB)

Market Cap: $27.86 billion

A respected player in the electrical segment, Hubbell (NYSE:HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.

Why Are We Backing HUBB?

1. 9.7% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
2. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 17.6%, and its operating leverage amplified its profits over the last five years
3. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 19.2% annually, topping its revenue gains

Hubbell’s stock price of $524.12 implies a valuation ratio of 26.4x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. 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.