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. Keeping that in mind, here are three S&P 500 stocks that could deliver good returns.
TJX (TJX)
Market Cap: $175 billion
Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE: TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.
Why Does TJX Catch Our Eye?
- Same-store sales growth averaged 3.9% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Dominant market position is represented by its $60.37 billion in revenue, which compensates for its subpar gross margin
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are growing as it capitalizes on even better market opportunities
At $158.46 per share, TJX trades at 31.3x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Insulet (PODD)
Market Cap: $15.35 billion
Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ: PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.
Why Should You Buy PODD?
- Average constant currency growth of 25.9% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
- Free cash flow margin increased by 30.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Rising returns on capital show management is finding more attractive investment opportunities
Insulet is trading at $218.55 per share, or 34.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Corpay (CPAY)
Market Cap: $19.95 billion
Formerly known as FLEETCOR until its 2024 rebrand, Corpay (NYSE: CPAY) provides specialized payment solutions for businesses to manage vehicle expenses, corporate payments, and lodging costs with enhanced control and reporting capabilities.
Why Is CPAY a Good Business?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 13.6% annual sales growth over the last five years
- Earnings per share have outperformed the peer group average over the last five years, increasing by 14% annually
- Industry-leading 31.1% return on equity demonstrates management’s skill in finding high-return investments
Corpay’s stock price of $293.21 implies a valuation ratio of 11.2x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% 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.
