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. Keeping that in mind, here is one S&P 500 stock that is positioned to outperform and two best left off your watchlist.

Market Cap: $29.95 billion

One of the largest homebuilders in America, Lennar (NYSE:LEN) is known for constructing affordable, move-up, and retirement homes across a range of markets and communities.

Why Do We Pass on LEN?

Backlog has dropped by 15.1% on average over the past two years, suggesting it’s losing orders as competition picks up

Free cash flow margin shrank by 9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Eroding returns on capital suggest its historical profit centers are aging

At $121.32 per share, Lennar trades at 18.1x forward P/E. Dive into our free research report to see why there are better opportunities than LEN.

Market Cap: $35.58 billion

Originally spun off from Hewlett-Packard in 1999 as its measurement and analytical division, Agilent Technologies (NYSE:A) provides analytical instruments, software, services, and consumables for laboratory workflows in life sciences, diagnostics, and applied chemical markets.

Why Is A Not Exciting?

Flat sales over the last two years suggest it must find different ways to grow during this cycle

Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth

Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3.9 percentage points

Agilent is trading at $125.81 per share, or 21.2x forward P/E. If you’re considering A for your portfolio, see our FREE research report to learn more.

Market Cap: $101.7 billion

With over $1 trillion in assets under management and investments spanning real estate, private equity, credit, and hedge funds, Blackstone (NYSE:BX) is a global alternative asset manager that invests capital on behalf of pension funds, sovereign wealth funds, and other institutional investors.

Why Is BX Interesting?

Annual revenue growth of 16.4% over the last two years was superb and indicates its market share increased during this cycle

Incremental sales over the last two years boosted profitability as its annual earnings per share growth of 18.7% outstripped its revenue performance

Blackstone’s stock price of $129.75 implies a valuation ratio of 20.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check 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 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.