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. That said, here is one S&P 500 stock that could deliver good returns and two that may struggle.

Two stocks to sell:

Norwegian Cruise Line (NCLH)

Market cap: $8.00 billion

With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE: NCLH) is a premier global cruise company.

Why Do We Avoid NCLH?

1. Performance surrounding its passenger cruise days has lagged its peers
2. Projected 2 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Norwegian Cruise Line’s stock price of $17.33 implies a valuation ratio of 14.3x forward P/E. To fully understand why you should be careful with NCLH, check out our full research report (it’s free).

Deere (DE)

Market cap: $179.5 billion

Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE: DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.

Why Is DE Risky?

1. Annual sales declines of 7.4% for the past two years show its products and services struggled to connect with the market during this cycle
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. Waning returns on capital imply its previous profit engines are losing steam

At $668.30 per share, Deere trades at 31.8x forward P/E. Dive into our free research report to see why there are better opportunities than DE.

One stock to buy:

Meta (META)

Market cap: $1.59 trillion

Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ: META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.

Why Are We Bullish on META?

1. Monetization efforts are paying off as its average revenue per user has grown by 21.9% annually over the last two years
2. Excellent EBITDA margin of 59.8% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
3. Share repurchases over the last three years enabled its annual earnings per share growth of 38% to outpace its revenue gains

Meta is trading at $618.25 per share, or 9.3x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks we like even more

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.