1 S&P 500 Stock for Long-Term Investors and 2 to Ignore

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 is one S&P 500 stock that is leading the market forward and two best left off your watchlist.

Two Stocks to Sell:

Charter (CHTR)

Market Cap: $56.63 billion

Operating as Spectrum, Charter (NASDAQ:CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.

Why Does CHTR Give Us Pause?

1. Sluggish trends in its internet subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Sales are projected to be flat over the next 12 months and imply weak demand
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Charter’s stock price of $408.17 implies a valuation ratio of 10.6x forward P/E. To fully understand why you should be careful with CHTR, check out our full research report (it’s free).

AT&T (T)

Market Cap: $195.9 billion

Founded by Alexander Graham Bell, AT&T (NYSE:T) is a multinational telecomm conglomerate providing a range of communications and internet services.

Why Is T Risky?

1. Sales tumbled by 7.3% annually over the last five years, showing consumer trends are working against its favor
2. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 9% annually, worse than its revenue
3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $27.29 per share, AT&T trades at 13.1x forward P/E. Dive into our free research report to see why there are better opportunities than T.

One Stock to Buy:

O'Reilly (ORLY)

Market Cap: $77.78 billion

Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.

Why Should You Buy ORLY?

1. Comparable store sales rose by 4.5% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
2. Unique assortment of products and pricing power result in a best-in-class gross margin of 51.3%
3. ORLY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

O'Reilly is trading at $1,363 per share, or 29.9x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.