Financial News

1 S&P 500 Stock with Exciting Potential and 2 We Turn Down

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The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.

Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. Keeping that in mind, here is one S&P 500 stock that is leading the market forward and two that may struggle.

Two Stocks to Sell:

Lowe's (LOW)

Market Cap: $151.7 billion

Founded in North Carolina as Lowe's North Wilkesboro Hardware, the company is a home improvement retailer that sells everything from paint to tools to building materials.

Why Does LOW Worry Us?

  1. Annual sales growth of 2.6% over the last six years lagged behind its consumer retail peers as its large revenue base made it difficult to generate incremental demand
  2. Recent store closures and weak same-store sales point to soft demand and an operational restructuring
  3. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience

Lowe’s stock price of $271.57 implies a valuation ratio of 21.1x forward P/E. If you’re considering LOW for your portfolio, see our FREE research report to learn more.

Hewlett Packard Enterprise (HPE)

Market Cap: $32.23 billion

Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE: HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.

Why Does HPE Give Us Pause?

  1. Sizable revenue base leads to growth challenges as its 4.2% annual revenue increases over the last five years fell short of other business services companies
  2. Earnings per share fell by 7.5% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
  3. Underwhelming 2.9% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $24.49 per share, Hewlett Packard Enterprise trades at 10.8x forward P/E. Dive into our free research report to see why there are better opportunities than HPE.

One Stock to Buy:

Interactive Brokers (IBKR)

Market Cap: $27.82 billion

Founded in 1977 and known for its sophisticated trading technology and global reach across 150+ exchanges in 34 countries, Interactive Brokers (NASDAQ: IBKR) is a global electronic broker that provides low-cost trading and investment services across stocks, options, futures, forex, bonds, and other financial instruments.

Why Is IBKR a Good Business?

  1. Impressive 22.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
  2. Additional sales over the last five years increased its profitability as the 27.4% annual growth in its earnings per share outpaced its revenue
  3. Impressive 20.2% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle

Interactive Brokers is trading at $62.60 per share, or 31.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

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 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 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 Comfort Systems (+782% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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