1 S&P 500 Stock for Long-Term Investors and 2 We Turn Down

1 S&P 500 Stock for Long-Term Investors and 2 We Turn Down

Anthony Lee

Mon, February 23, 2026 at 1:48 PM GMT+9 3 min read

In this article:

^GSPC

+0.69%

YUM

+0.37%

ICE

-0.06%

WSM

+1.92%

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.

Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. Keeping that in mind, here is one S&P 500 stock that is positioned to outperform and two that may struggle.

Two Stocks to Sell:

Williams-Sonoma (WSM)

Market Cap: $25.65 billion

Started in 1956 as a store specializing in French cookware, Williams-Sonoma (NYSE:WSM) is a specialty retailer of higher-end kitchenware, home goods, and furniture.

Why Are We Cautious About WSM?

Store closures and disappointing same-store sales suggest demand is sluggish and it’s rightsizing its operations

Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand

Earnings per share lagged its peers over the last three years as they only grew by 3.3% annually

At $215.01 per share, Williams-Sonoma trades at 23.8x forward P/E. Check out our free in-depth research report to learn more about why WSM doesn’t pass our bar.

Intercontinental Exchange (ICE)

Market Cap: $87.46 billion

Starting as an energy trading platform in 2000 before acquiring the iconic New York Stock Exchange in 2013, Intercontinental Exchange (NYSE:ICE) operates global financial exchanges, clearing houses, and provides data services and mortgage technology solutions to financial institutions and corporations.

Why Is ICE Not Exciting?

Incremental sales over the last five years were less profitable as its 9% annual earnings per share growth lagged its revenue gains

Intercontinental Exchange is trading at $154.00 per share, or 20.2x forward P/E. Dive into our free research report to see why there are better opportunities than ICE.

One Stock to Watch:

Yum! Brands (YUM)

Market Cap: $45.15 billion

Spun off as an independent company from PepsiCo, Yum! Brands (NYSE:YUM) is a multinational corporation that owns KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill.

Why Could YUM Be a Winner?

Rapidly increasing restaurant base reflects a desire to sell in new markets and scale quickly

Healthy operating margin of 31.6% shows it’s a well-run company with efficient processes

YUM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Yum! Brands’s stock price of $163.33 implies a valuation ratio of 24.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Story Continues  

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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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