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. That said, here are three S&P 500 stocks leading the market forward.
Meta (META)
Market Cap: $1.50 trillion
Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ: META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.
Why Is META a Top Pick?
- 13.3% annual increases in its average revenue per user over the last two years show its platform is resonating with power users
- Excellent EBITDA margin of 59.9% highlights the efficiency of its business model, and its operating leverage amplified its profits over the last few years
- META is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Meta is trading at $597.70 per share, or 13.5x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Netflix (NFLX)
Market Cap: $491.7 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 Beat the Market?
- 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
- Highly efficient business model is illustrated by its impressive 27% EBITDA margin, and its profits increased over the last few years as it scaled
- Free cash flow margin increased by 18.6 percentage points over the last few years, giving the company more capital to invest or return to shareholders
At $1,158 per share, Netflix trades at 35.7x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Philip Morris (PM)
Market Cap: $273 billion
Founded in 1847, Philip Morris International (NYSE: PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.
Why Are We Backing PM?
- Products are seeing elevated demand as its unit sales averaged 3% growth over the past two years
- Differentiated product offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 64.8%
- Strong free cash flow margin of 25.7% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
Philip Morris’s stock price of $175.49 implies a valuation ratio of 23.4x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
