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 positioned to outperform.
Amazon (AMZN)
Market Cap: $2.60 trillion
Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ: AMZN) is the world’s largest online retailer and provider of cloud computing services.
Why Does AMZN Stand Out?
- Amazon revolutionized the way consumers shop. This isn’t the only tailwind to its impressive revenue growth, as its highly profitable AWS segment has also driven top-line momentum.
- The company’s best-in-class revenue growth coupled with modest operating leverage on its past infrastructure investments has led to elite EPS growth over a multi-year period.
- Though dominant, Amazon’s capital-intensive e-commerce business means its profitability is structurally lower than its pure-play tech peers. Can the company pull it up, or are we reaching a ceiling?
Amazon’s stock price of $242.95 implies a valuation ratio of 29.5x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
AppLovin (APP)
Market Cap: $160.8 billion
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ: APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
Why Will APP Beat the Market?
- Annual revenue growth of 30.4% over the past two years was outstanding, reflecting market share gains
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- APP is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
AppLovin is trading at $523.00 per share, or 20.2x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Keysight (KEYS)
Market Cap: $58.11 billion
Spun off from Hewlett-Packard in 2014, Keysight (NYSE: KEYS) offers electronic measurement products for use in various sectors.
Why Is KEYS on Our Radar?
- Offerings are mission-critical for businesses and result in a best-in-class gross margin of 63.3%
- Robust free cash flow margin of 21.2% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $315.48 per share, Keysight trades at 28.5x 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
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
