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1 S&P 500 Stock Worth Your Attention and 2 We Question

KO Cover Image

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 could deliver good returns and two that may struggle.

Two Stocks to Sell:

IQVIA (IQV)

Market Cap: $28.8 billion

Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE: IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.

Why Are We Cautious About IQV?

  1. Annual sales growth of 2.8% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
  2. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
  3. Free cash flow margin dropped by 3.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $176.72 per share, IQVIA trades at 13.5x forward P/E. If you’re considering IQV for your portfolio, see our FREE research report to learn more.

Bristol-Myers Squibb (BMY)

Market Cap: $122.1 billion

With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE: BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.

Why Does BMY Worry Us?

  1. The company has faced growth challenges as its 2.6% annual revenue increases over the last five years fell short of other healthcare companies
  2. Sales are projected to tank by 5.8% over the next 12 months as demand evaporates
  3. Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 10.3 percentage points

Bristol-Myers Squibb is trading at $59.55 per share, or 9.6x forward P/E. Read our free research report to see why you should think twice about including BMY in your portfolio.

One Stock to Watch:

Coca-Cola (KO)

Market Cap: $333.9 billion

A pioneer and behemoth in carbonated soft drinks, Coca-Cola (NYSE: KO) is a storied beverage company best known for its flagship soda.

Why Is KO on Our Radar?

  1. Unparalleled brand awareness is evident in its $48.06 billion revenue base, which gives it advantageous terms because retailers must stock its products
  2. Products command premium prices and result in a best-in-class gross margin of 61.3%
  3. Healthy operating margin of 25% shows it’s a well-run company with efficient processes, and its rise over the last year was fueled by some leverage on its fixed costs

Coca-Cola’s stock price of $77.40 implies a valuation ratio of 24.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

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.

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