3 S&P 500 Stocks to Sell Before the Losses Compound

Group 1: S&P 500 Overview - The S&P 500 provides exposure to 500 corporations across multiple sectors, allowing for risk diversification [1] - The long-term average annualized return for the S&P 500 is 10.32%, but nearly 200 companies are currently underperforming [1] - Investing in underperforming S&P 500 stocks has led to significant losses and missed opportunities in high-performing sectors like AI [1] Group 2: Nike (NKE) - Nike's stock has declined by 9% over the past five years and has a 30% year-to-date loss, losing market share to smaller competitors [2] - The company reported a 2% year-over-year revenue decline in Q4 of fiscal 2024, with only a 1% increase in revenue for the entire fiscal year [2][3] - CEO John Donahoe acknowledged challenges, with North American and European sales dropping year-over-year, while China sales increased by 3% [3] Group 3: Disney (DIS) - Disney's stock has decreased by 4% year-to-date and 37% over the past five years, with stagnant performance over the last decade [5] - Revenue grew by 4% year-over-year in Q3 of fiscal 2024, but the company's 33 P/E ratio appears excessive [5][6] - Disney Parks have been a revenue driver, but performance is slowing, and the value proposition is less appealing compared to cheaper alternatives [6] Group 4: Airbnb (ABNB) - Airbnb's stock has a 14% year-to-date loss, with rising prices making it more expensive than many hotels [7] - Revenue grew by 11% year-over-year in Q2, but net income dropped by 15% year-over-year, indicating potential challenges ahead [7] - The company faces competition from hotels and motels as consumers seek more affordable travel options [7]