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.
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 positioned to outperform.
Seagate (STX)
Market Cap: $180.1 billion
One of two remaining major hard drive manufacturers after decades of industry consolidation, Seagate (NASDAQ: STX) manufactures hard disk drives and solid state drives that store data in data centers, cloud systems, and consumer devices.
What Makes STX Stand Out?
- Market share has increased this cycle as its 36.4% annual revenue growth over the last two years was exceptional
- Operating margin expanded by 16.8 percentage points over the last five years as it scaled and became more efficient
- Free cash flow margin grew by 14.5 percentage points over the last five years, giving the company more chips to play with
Seagate is trading at $790.60 per share, or 23.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Alphabet (GOOGL)
Market Cap: $4.24 trillion
Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ: GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube.
Why Will GOOGL Beat the Market?
- Alphabet’s dominant Google Search sits on the pantheon of the best businesses ever. This is reflected in its robust long-term revenue growth and elite operating margin.
- The company’s profit margins have become even higher over time, speaking to its scale advantages and operating efficiency not only in its core Search business but also in Google Cloud Platform and YouTube.
- Revenue growth and increasing operating margins are the key ingredients for strong EPS growth. Google has these, and when also factoring in its share repurchases, you can see why EPS has exploded over the long term.
Alphabet’s stock price of $347.88 implies a valuation ratio of 25.9x forward price-to-earnings. Is now the right time to buy? See for yourself in our full research report, it’s free.
Charles Schwab (SCHW)
Market Cap: $196.5 billion
Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE: SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.
Why Are We Bullish on SCHW?
- Annual revenue growth of 18.6% 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 40.3% exceeded its revenue gains over the last two years
- ROE punches in at 15.6%, illustrating management’s expertise in identifying profitable investments
At $113.80 per share, Charles Schwab trades at 15.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
