StockStory Picks Eli Lilly and Moody's, Flags Nordson Risks

StockStory has identified two S&P 500 constituents, Eli Lilly (NYSE:LLY) and Moody's (NYSE:MCO), as stocks suitable for long-term ownership, while recommending that investors avoid Nordson Corporation (NASDAQ:NDSN). The firm argues that while the S&P 500 (^GSPC) serves as a benchmark for strong businesses, individual companies within the index face distinct challenges such as stagnating growth, heavy debt, or disruptive competitors. StockStory positions its analysis as a method to separate winners from laggards among large-cap stocks that may be past their peak.

Nordson Corporation, which manufactures dispensing equipment and industrial adhesives, sealants, and coatings, is the primary stock StockStory advises against. The company, founded in 1954, has a market cap of $18.28 billion. The firm notes that Nordson's organic revenue growth has fallen short of its benchmarks over the past two years, suggesting the company may need to improve its products, pricing, or go-to-market strategy. Additionally, anticipated sales growth of 6.4% for the next year implies shaky demand, while waning returns on capital indicate that previous profit engines are losing steam. At a share price of $328.50, Nordson trades at 25.8 times its forward earnings per share.

In contrast, Eli Lilly (NYSE:LLY) is highlighted for its exceptional performance. Founded in 1876 by a Civil War veteran and pharmacist, the pharmaceutical giant has a market cap of $1.05 trillion. It discovers, develops, and manufactures products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases. StockStory points to a 43.1% annual revenue growth over the last two years as evidence of increasing market share. The company's adjusted operating margin expanded by 18.7 percentage points over the same period as it scaled and became more efficient. Performance over the past five years was further boosted by share buybacks, which allowed earnings per share to grow faster than revenue. With a stock price of $1,177, Eli Lilly carries a valuation ratio of 29.3 times forward earnings.

Moody's (NYSE:MCO), founded in 1900 during America's railroad boom to provide reliable information on bond risks, is the second recommended stock. With a market cap of $80.4 billion, the firm provides credit ratings, risk assessment tools, and analytical solutions. StockStory cites Moody's above-market 11.6% annual sales growth over the last two years as proof that its offerings resonate with customers. Share repurchases have increased shareholder returns, with annual earnings per share growth of 21.3% exceeding revenue gains over the same two-year period. The company demonstrates industry-leading skill in finding high-return investments with a 59.9% return on equity. Moody's trades at $463.53 per share, or 25.9 times forward earnings.

StockStory also promotes its AI-driven stock selection system, claiming it identified Palantir prior to a 1,662% rise from October 2022 to February 2026. The firm states it similarly picked AppLovin before a 753% gain from February 2024 to February 2026 and Nvidia ahead of a 1,178% increase from January 2023 to February 2026. The system generates six new names weekly that pass specific tests.