1 S&P 500 Stock on Our Buy List and 2 Facing Challenges

1 S&P 500 Stock on Our Buy List and 2 Facing Challenges

Jabin Bastian

Thu, February 12, 2026 at 1:34 PM GMT+9 3 min read

In this article:

•                                       StockStory Top Pick 
  

  MCO

  -1.61%

 ^GSPC  

 -0.00%  

 

 

 TROW  

 -2.95%  

 

 

 GIS  

 +0.72%  

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:

General Mills (GIS)

Market Cap: $26.15 billion

Best known for its portfolio of powerhouse breakfast cereal brands, General Mills (NYSE:GIS) is a packaged foods company that has also made a mark in cereals, baking products, and snacks.

Why Do We Think Twice About GIS?

Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth

Sales are projected to be flat over the next 12 months and imply weak demand

Free cash flow margin shrank by 4.6 percentage points over the last year, suggesting the company is consuming more capital to stay competitive

General Mills’s stock price of $48.96 implies a valuation ratio of 13.1x forward P/E. To fully understand why you should be careful with GIS, check out our full research report (it’s free).

T. Rowe Price (TROW)

Market Cap: $20.5 billion

Founded in 1937 by Thomas Rowe Price Jr., who pioneered the growth stock investing approach, T. Rowe Price (NASDAQ:TROW) is an investment management firm that offers mutual funds, advisory services, and retirement planning solutions to individuals and institutions.

Why Are We Cautious About TROW?

Sales trends were unexciting over the last five years as its 3.5% annual growth was below the typical financials company

Earnings per share were flat over the last five years while its revenue grew, showing its incremental sales were less profitable

At $93.65 per share, T. Rowe Price trades at 9.6x forward P/E. If you’re considering TROW for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Moody’s (MCO)

Market Cap: $73.54 billion

Founded in 1900 during America’s railroad boom when investors needed reliable information on bond risks, Moody’s (NYSE:MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.

Why Are We Backing MCO?

14.5% annual revenue growth over the last two years surpassed the sector average as its products resonated with customers

Share repurchases have amplified shareholder returns as its annual earnings per share growth of 22.3% exceeded its revenue gains over the last two years

Stellar return on equity showcases management’s ability to surface highly profitable business ventures

 






Story Continues  

Moody’s is trading at $414.25 per share, or 26x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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