2 S&P 500 Stocks for Long-Term Investors and 1 We Avoid

2 S&P 500 Stocks for Long-Term Investors and 1 We Avoid

Kayode Omotosho

Wed, February 18, 2026 at 1:33 PM GMT+9 4 min read

In this article:

•                                       StockStory Top Pick 
  

  TTD

  -2.13%

  ORLY

  -4.20%

 ^GSPC  

 +0.10%  

 

 

 RF-PE  

 +0.78%  

 

 

 RF-PF  

 +0.66%  

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. Keeping that in mind, here are two S&P 500 stocks positioned to outperform and one that may struggle.

One Stock to Sell:

Regions Financial (RF)

Market Cap: $25.85 billion

Tracing its roots back to 1971 and operating in a region known as the “heart of Dixie,” Regions Financial (NYSE:RF) is a financial holding company that provides banking services, wealth management, and specialty financial solutions across the South, Midwest, and Texas.

Why Does RF Worry Us?

Muted 5.1% annual net interest income growth over the last five years shows its demand lagged behind its banking peers

Net interest margin dropped by 38.2 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market

Earnings per share lagged its peers over the last two years as they only grew by 2.2% annually

Regions Financial is trading at $29.72 per share, or 1.4x forward P/B. To fully understand why you should be careful with RF, check out our full research report (it’s free).

Two Stocks to Buy:

The Trade Desk (TTD)

Market Cap: $12.22 billion

Built as an alternative to “walled garden” advertising ecosystems, The Trade Desk (NASDAQ:TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.

Why Are We Backing TTD?

Average billings growth of 20.1% over the last year enhances its liquidity and shows there is steady demand for its products

Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently

Excellent operating margin of 18.9% highlights the efficiency of its business model, and its rise over the last year was fueled by some leverage on its fixed costs

At $25.23 per share, The Trade Desk trades at 4x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

O’Reilly (ORLY)

Market Cap: $77.96 billion

Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.

La historia continúa  

Why Will ORLY Outperform?

Locations open for at least a year are seeing increased demand as same-store sales have averaged 3.8% growth over the past two years

Healthy operating margin of 19.5% shows it’s a well-run company with efficient processes

Industry-leading 42.5% return on capital demonstrates management’s skill in finding high-return investments

O’Reilly’s stock price of $92.96 implies a valuation ratio of 29.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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