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.
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 could deliver good returns and two that could be in trouble.
Two Stocks to Sell:
Conagra (CAG)
Market Cap: $8.16 billion
Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE:CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.
Why Do We Pass on CAG?
- Falling unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Projected sales decline of 2% for the next 12 months points to an even tougher demand environment ahead
- ROIC of 5.3% reflects management’s challenges in identifying attractive investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
Conagra’s stock price of $17.06 implies a valuation ratio of 9.6x forward P/E. Dive into our free research report to see why there are better opportunities than CAG.
CVS Health (CVS)
Market Cap: $96.01 billion
With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE:CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary.
Why Does CVS Fall Short?
- Annual sales growth of 6.4% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 2.9% annually while its revenue grew
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam
At $75.70 per share, CVS Health trades at 11.1x forward P/E. To fully understand why you should be careful with CVS, check out our full research report (it’s free for active Edge members).
One Stock to Buy:
Progressive (PGR)
Market Cap: $130.7 billion
Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE:PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.
Why Will PGR Outperform?
- Net premiums earned surged by 19.5% annually over the past two years, reflecting strong market share gains this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 93.9% annually, topping its revenue gains
- Impressive 44.7% annual book value per share growth over the last two years indicates it’s building equity value this cycle
Progressive is trading at $222.90 per share, or 3.7x forward P/B. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
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 Strong Momentum Stocks for this week. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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