2 S&P 500 Stocks to Target This Week and 1 Facing Headwinds

The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.

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 are two S&P 500 stocks positioned to outperform and one best left off your watchlist.

One Stock to Sell:

Dollar Tree (DLTR)

Market Cap: $23.03 billion

A treasure hunt because there’s no guarantee of consistent product selection, Dollar Tree (NASDAQ:DLTR) is a discount retailer that sells general merchandise and select packaged food at extremely low prices.

Why Do We Think DLTR Will Underperform?

1. Annual sales declines of 11.9% for the past three years show its products struggled to connect with the market
2. Conservative approach to adding new stores shows management is focused on improving existing location performance
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up

Dollar Tree is trading at $115.33 per share, or 18.1x forward P/E. Dive into our free research report to see why there are better opportunities than DLTR.

Two Stocks to Buy:

Howmet (HWM)

Market Cap: $100.3 billion

Inventing the first forged aluminum truck wheel, Howmet (NYSE:HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.

Why Is HWM a Top Pick?

1. Impressive 11.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Free cash flow margin grew by 12.3 percentage points over the last five years, giving the company more chips to play with

Howmet’s stock price of $251.51 implies a valuation ratio of 54.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Dell (DELL)

Market Cap: $97.07 billion

Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE:DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.

Why Are We Bullish on DELL?

1. Annual revenue growth of 13.3% over the past two years was outstanding, reflecting market share gains this cycle
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Rising returns on capital show management is finding more attractive investment opportunities

At $145.75 per share, Dell trades at 11.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

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 Kadant (+351% five-year return). Find your next big winner with StockStory today.