The S&P 500 (^GSPC) is packed with companies that have built dominant market positions, making it a core index for investors. A select few continue to innovate and expand, setting themselves up for long-term success.
Identifying the best companies in the S&P 500 isn’t always easy, and that’s why we started StockStory. Keeping that in mind, here are three S&P 500 stocks positioned to outperform.
Nvidia (NVDA)
Market Cap: $4.96 trillion
Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ: NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.
Why Will NVDA Outperform?
- Annual revenue growth of 78.3% over the past two years was outstanding, reflecting market share gains this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 81.5% exceeded its revenue gains over the last five years
- NVDA is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
Nvidia’s stock price of $207.82 implies a valuation ratio of 21.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Gilead Sciences (GILD)
Market Cap: $156.3 billion
From its groundbreaking work in developing the first single-tablet regimens for HIV treatment, Gilead Sciences (NASDAQ: GILD) develops and markets innovative medicines for life-threatening diseases including HIV, viral hepatitis, COVID-19, and cancer.
Why Are We Positive on GILD?
- Economies of scale give it more fixed cost leverage than its smaller competitors
- Adjusted operating profits increased over the last two years as the company gained some leverage on its fixed costs and became more efficient
- Robust free cash flow margin of 33% gives it many options for capital deployment
At $124.82 per share, Gilead Sciences trades at 5.1x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Ameriprise Financial (AMP)
Market Cap: $40.49 billion
Founded in 1894 and spun off from American Express in 2005, Ameriprise Financial (NYSE: AMP) provides financial planning, wealth management, asset management, and insurance products to help individuals and institutions achieve their financial goals.
Why Is AMP a Top Pick?
- Share buybacks catapulted its annual earnings per share growth to 23.9%, which outperformed its revenue gains over the last five years
- Annual tangible book value per share growth of 18.7% over the last two years was superb and indicates its capital strength increased during this cycle
- ROE punches in at 63.7%, illustrating management’s expertise in identifying profitable investments
Ameriprise Financial is trading at $471.38 per share, or 10.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as ServiceNow (+163% 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.
