The S&P 500 (^GSPC) is full of established businesses, but only some continue to outperform the market. A few standout companies are thriving thanks to strong fundamentals and sustained competitive advantages.
Even in the S&P 500, only a few stocks will consistently outperform, which is why we built StockStory. That said, here are three S&P 500 stocks that could deliver good returns.
Palantir Technologies (PLTR)
Market Cap: $450.5 billion
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ: PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
Why Will PLTR Outperform?
- Average billings growth of 76.7% over the last year enhances its liquidity and shows there is steady demand for its products
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Strong free cash flow margin of 56.5% enables it to reinvest or return capital consistently
Palantir Technologies is trading at $188.01 per share, or 47.9x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Zebra (ZBRA)
Market Cap: $17.59 billion
Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ: ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.
Why Does ZBRA Stand Out?
- Core business can prosper without any help from acquisitions as its organic revenue growth averaged 13.8% over the past two years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 49.8% exceeded its revenue gains over the last two years
- Free cash flow margin increased by 4.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Zebra’s stock price of $377.55 implies a valuation ratio of 17.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
GE Vernova (GEV)
Market Cap: $253 billion
Born from the energy business of industrial giant General Electric in a 2023 spin-off, GE Vernova (NYSE: GEV) designs, manufactures, and services power generation equipment and grid technologies to help customers build more reliable and sustainable electric systems.
Why Is GEV a Top Pick?
- Impressive 10.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share buybacks catapulted its annual earnings per share growth to 169%, which outperformed its revenue gains over the last two years
- Free cash flow margin increased by 45.3 percentage points over the last four years, giving the company more capital to invest or return to shareholders
At $948.50 per share, GE Vernova trades at 45.7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
