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.
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.
Lam Research (LRCX)
Market Cap: $366.6 billion
Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ: LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.
Why Do We Love LRCX?
- Market share has increased this cycle as its 24.8% annual revenue growth over the last two years was exceptional
- Highly efficient business model is illustrated by its impressive 33.8% operating margin, and its operating leverage amplified its profits over the last five years
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are growing as it capitalizes on even better market opportunities
At $292 per share, Lam Research trades at 30.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Fair Isaac Corporation (FICO)
Market Cap: $24.25 billion
Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation (NYSE: FICO) develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.
Why Should You Buy FICO?
- Share buybacks catapulted its annual earnings per share growth to 33.8%, which outperformed its revenue gains over the last two years
- Strong free cash flow margin of 35.8% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
- Returns on capital are growing as management capitalizes on its market opportunities
Fair Isaac Corporation is trading at $1,123 per share, or 22x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
ConocoPhillips (COP)
Market Cap: $146.8 billion
Operating the famous Prudhoe Bay field discovered in 1968 that transformed Alaska's economy, ConocoPhillips (NYSE: COP) explores for and produces crude oil, natural gas, and liquefied natural gas across North America, Europe, Asia, and Africa.
Why Are We Bullish on COP?
- Market share has increased this cycle as its 8% annual revenue growth over the last ten years was exceptional
- Massive revenue base of $60.5 billion makes it a household name that influences purchasing decisions
- Robust free cash flow margin of 17.3% gives it many options for capital deployment
ConocoPhillips’s stock price of $121.67 implies a valuation ratio of 12x forward P/E. Is now the time to initiate a position? 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 (+1,460% 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.
