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.
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.
Trane Technologies (TT)
Market Cap: $103 billion
With low-pressure heating systems as its first product, Trane (NYSE:TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.
Why Do We Love TT?
- Impressive 11.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 20.2% exceeded its revenue gains over the last two years
- ROIC punches in at 24.6%, illustrating management’s expertise in identifying profitable investments, and its rising returns show it’s making even more lucrative bets
Trane Technologies is trading at $465.72 per share, or 31.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Boston Scientific (BSX)
Market Cap: $110.8 billion
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE:BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Why Could BSX Be a Winner?
- Average organic revenue growth of 16.6% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 26% annually, topping its revenue gains
- Free cash flow margin grew by 6.2 percentage points over the last five years, giving the company more chips to play with
Boston Scientific’s stock price of $74.28 implies a valuation ratio of 21.4x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Zoetis (ZTS)
Market Cap: $53.46 billion
Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE:ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.
Why Does ZTS Stand Out?
- Steady constant currency growth over the past two years shows the company can pursue its global ambitions, even in uncertain economic times
- Strong free cash flow margin of 21.5% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $126.67 per share, Zoetis trades at 17.9x 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
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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.