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. That said, here is one S&P 500 stock that could deliver good returns and two that may struggle.
Two Stocks to Sell:
Packaging Corporation of America (PKG)
Market Cap: $18.36 billion
Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.
Why Is PKG Not Exciting?
- Annual revenue growth of 6.2% over the last five years was below our standards for the industrials sector
- Efficiency has decreased over the last five years as its operating margin fell by 3.7 percentage points
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $207.49 per share, Packaging Corporation of America trades at 20.1x forward P/E. Check out our free in-depth research report to learn more about why PKG doesn’t pass our bar.
Kroger (KR)
Market Cap: $41.51 billion
With a sprawling network of over 2,400 locations offering digital pickup services, Kroger (NYSE: KR) operates supermarkets, pharmacies, and fuel centers across 35 states, offering customers groceries, household items, and private-label products.
Why Should You Sell KR?
- Limited expansion of stores suggests it’s prioritizing efficiency over growth at this stage
- Widely-available products (and therefore stiff competition) result in an inferior gross margin of 23.8% that must be offset through higher volumes
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
Kroger is trading at $67.62 per share, or 12.7x forward P/E. If you’re considering KR for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
ConocoPhillips (COP)
Market Cap: $148.2 billion
Operating the famous Prudhoe Bay field discovered in 1968 that transformed Alaska's economy, ConocoPhillips (NYSE: COP) explores for and produces crude oil, natural gas, and liquefied natural gas across North America, Europe, Asia, and Africa.
Why Are We Bullish on COP?
- Impressive 26.2% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Massive revenue base of $61.55 billion makes it a household name that influences purchasing decisions
- Strong free cash flow margin of 17.5% enables it to reinvest or return capital consistently
ConocoPhillips’s stock price of $121.56 implies a valuation ratio of 14x 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
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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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
