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.
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 positioned to outperform.
McDonald's (MCD)
Market Cap: $238.3 billion
With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s (NYSE: MCD) is a fast-food behemoth known for its convenience and broken ice cream machines.
Why Could MCD Be a Winner?
- Fast expansion of new restaurants indicates an aggressive approach to attacking untapped market opportunities
- Highly-profitable franchise model results in strong unit economics and a best-in-class gross margin of 57.1%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
McDonald’s stock price of $334.38 implies a valuation ratio of 24.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Corning (GLW)
Market Cap: $124.6 billion
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE: GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Why Is GLW on Our Radar?
- 9.9% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Projected revenue growth of 15.2% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings per share have massively outperformed its peers over the last two years, increasing by 22% annually
Corning is trading at $146.56 per share, or 44.9x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Incyte (INCY)
Market Cap: $20.07 billion
Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ: INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.
Why Are We Positive On INCY?
- Annual revenue growth of 18% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin expanded by 7.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $100.38 per share, Incyte trades at 13.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).
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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
