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.
Identifying the best companies in the S&P 500 isn’t always easy, and that’s why we started StockStory. Keeping that in mind, here are three S&P 500 stocks leading the market forward.
Netflix (NFLX)
Market Cap: $513.4 billion
Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.
Why Will NFLX Outperform?
- Global Streaming Paid Memberships are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Share repurchases over the last three years enabled its annual earnings per share growth of 27.8% to outpace its revenue gains
- Free cash flow margin increased by 19.9 percentage points over the last few years, giving the company more capital to invest or return to shareholders
At $1,206 per share, Netflix trades at 34.8x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
W.W. Grainger (GWW)
Market Cap: $45.52 billion
Founded as a supplier of motors, W.W. Grainger (NYSE: GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.
Why Could GWW Be a Winner?
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 36.7% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities
W.W. Grainger is trading at $951.71 per share, or 22.2x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Visa (V)
Market Cap: $645.3 billion
Processing over 829 million transactions daily and connecting billions of cards to 150 million merchant locations worldwide, Visa (NYSE: V) operates one of the world's largest electronic payments networks, facilitating secure money movement across more than 200 countries through its VisaNet processing platform.
Why Is V a Top Pick?
- Annual revenue growth of 11.2% over the last five years beat the sector average and underscores the unique value of its offerings
- Share repurchases over the last five years enabled its annual earnings per share growth of 15.8% to outpace its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Visa’s stock price of $335.31 implies a valuation ratio of 27.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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