While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. Keeping that in mind, here are two S&P 500 stocks that could deliver good returns and one that may struggle.
One Stock to Sell:
NVR (NVR)
Market Cap: $22.8 billion
Known for its unique land acquisition strategy, NVR (NYSE:NVR) is a respected homebuilder and mortgage company in the United States.
Why Does NVR Fall Short?
- New orders were hard to come by as its average backlog growth of 1.3% over the past two years underwhelmed
- Sales are projected to tank by 6.9% over the next 12 months as demand evaporates
- Eroding returns on capital suggest its historical profit centers are aging
NVR is trading at $7,910 per share, or 18.5x forward P/E. If you’re considering NVR for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
CrowdStrike (CRWD)
Market Cap: $110.1 billion
Founded by George Kurtz, the former CTO of the antivirus company McAfee, CrowdStrike (NASDAQ:CRWD) provides cybersecurity software that protects companies from breaches and helps them detect and respond to cyber attacks.
Why Does CRWD Catch Our Eye?
- Customers view its software as mission-critical to their operations as its ARR has averaged 26.1% growth over the last year
- Estimated revenue growth of 21.6% for the next 12 months implies its momentum over the last three years will continue
- CRWD is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
CrowdStrike’s stock price of $440.50 implies a valuation ratio of 21.8x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stryker (SYK)
Market Cap: $145.6 billion
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE:SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Why Is SYK on Our Radar?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 10.2% over the past two years
- Economies of scale give it some operating leverage when demand rises
- Earnings per share grew by 13.3% annually over the last five years, massively outpacing its peers
At $380.86 per share, Stryker trades at 27.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
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