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 could deliver good returns and two that could be in trouble.
Two Stocks to Sell:
Caesars Entertainment (CZR)
Market Cap: $5.27 billion
Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ:CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties.
Why Are We Cautious About CZR?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 10% annually while its revenue grew
- High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Caesars Entertainment’s stock price of $25.45 implies a valuation ratio of 31x forward P/E. Read our free research report to see why you should think twice about including CZR in your portfolio.
Delta (DAL)
Market Cap: $34.07 billion
One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE:DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.
Why Should You Dump DAL?
- Performance surrounding its revenue passenger miles has lagged its peers
- Estimated sales growth of 1.9% for the next 12 months implies demand will slow from its two-year trend
- Underwhelming 5.7% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $52.53 per share, Delta trades at 8.8x forward P/E. If you’re considering DAL for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
AbbVie (ABBV)
Market Cap: $348.3 billion
Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE:ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.
Why Could ABBV Be a Winner?
- Unparalleled scale of $58.33 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
- Strong free cash flow margin of 36.6% enables it to reinvest or return capital consistently
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
AbbVie is trading at $196.78 per share, or 14.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
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.
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