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.
Identifying the best companies in the S&P 500 isn’t always easy, and that’s why we started StockStory. That said, here are three S&P 500 stocks leading the market forward.
Carvana (CVNA)
Market cap: $56.05 billion
Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
What Makes CVNA Stand Out?
- Retail Units Sold are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Platform’s growing usage and its ability to increase unit spending by 10.7% annually showcases its high switching costs
- Share repurchases over the last three years enabled its annual earnings per share growth of 49.5% to outpace its revenue gains
At $77.58 per share, Carvana trades at 15.3x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Coca-Cola (KO)
Market cap: $412.1 billion
A pioneer and behemoth in carbonated soft drinks, Coca-Cola (NYSE: KO) is a storied beverage company best known for its flagship soda.
Why Do We Watch KO?
- Products are seeing elevated demand as its unit sales averaged 2.3% growth over the past two years
- Products command premium prices and lead to a best-in-class gross margin of 62%
- Strong free cash flow margin of 20.1% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
Coca-Cola’s stock price of $96.20 implies a valuation ratio of 27.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Omnicom Group (OMC)
Market cap: $23.88 billion
With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE: OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.
Why Should You Buy OMC?
- Market share has increased this cycle as its 26.7% annual revenue growth over the last two years was exceptional
- Massive revenue base of $24.76 billion makes it a well-known name that influences purchasing decisions
- Free cash flow margin increased by 6.2 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Omnicom Group is trading at $87.20 per share, or 7.6x 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
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
