The biggest companies in the world call the S&P 500 (^GSPC) home, but only a handful are still growing rapidly. Some of these industry leaders are executing exceptionally well and rewarding shareholders.
Not every big company is a great investment, and we’re here to help you find the best opportunities. Keeping that in mind, here are three S&P 500 stocks that could deliver good returns.
Yum! Brands (YUM)
Market Cap: $41.05 billion
Spun off as an independent company from PepsiCo, Yum! Brands (NYSE: YUM) is a multinational corporation that owns KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill.
Why Could YUM Be a Winner?
- Rapidly increasing restaurant base reflects a desire to sell in new markets and scale quickly
- Highly efficient business model is illustrated by its impressive 31.4% operating margin
- Strong free cash flow margin of 19.1% enables it to reinvest or return capital consistently
Yum! Brands is trading at $148.90 per share, or 21.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Broadridge (BR)
Market Cap: $17.22 billion
Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE: BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.
Why Do We Like BR?
- Annual revenue growth of 8.7% over the last five years beat the sector average and underscores the unique value of its offerings
- Free cash flow margin grew by 10.7 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are growing as management capitalizes on its market opportunities
At $147.96 per share, Broadridge trades at 14.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Morgan Stanley (MS)
Market Cap: $337.2 billion
Founded in 1924 during the post-WWI economic boom by former JP Morgan partners, Morgan Stanley (NYSE: MS) is a global financial services firm that provides investment banking, wealth management, and investment management services to corporations, governments, institutions, and individuals.
Why Is MS on Our Radar?
- Annual revenue growth of 17.7% over the last two years was superb and indicates its market share increased during this cycle
- Share buybacks catapulted its annual earnings per share growth to 39.7%, which outperformed its revenue gains over the last two years
- ROE punches in at 13.1%, illustrating management’s expertise in identifying profitable investments
Morgan Stanley’s stock price of $213.82 implies a valuation ratio of 16.4x forward P/E. Is now a good time to buy? See for yourself in our full 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.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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.
