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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. That said, here is one S&P 500 stock that is leading the market forward and two best left off your watchlist.

Two Stocks to Sell:

Charter (CHTR)

Market Cap: $56.63 billion

Operating as Spectrum, Charter (NASDAQ:CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.

Why Does CHTR Give Us Pause?

1. Sluggish trends in its internet subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped

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

3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Charter’s stock price of $408.17 implies a valuation ratio of 10.6x forward P/E. If you’re considering CHTR for your portfolio, see our FREE research report to learn more.

AT&T (T)

Market Cap: $195.9 billion

Founded by Alexander Graham Bell, AT&T (NYSE:T) is a multinational telecomm conglomerate providing a range of communications and internet services.

Why Is T Risky?

1. Sales tumbled by 7.3% annually over the last five years, showing consumer trends are working against its favor

2. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 9% annually, worse than its revenue

3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $27.29 per share, AT&T trades at 13.1x forward P/E. Dive into our free research report to see why there are better opportunities than T.

One Stock to Buy:

O'Reilly (ORLY)

Market Cap: $77.78 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.

Why Should You Buy ORLY?

1. Comparable store sales rose by 4.5% on average over the past two years, demonstrating its ability to drive increased spending at existing locations

2. Unique assortment of products and pricing power result in a best-in-class gross margin of 51.3%

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