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.

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 positioned to outperform.

Altria (MO)

Market Cap: $111.8 billion

Best known for its Marlboro brand of cigarettes, Altria (NYSE: MO) offers tobacco and nicotine products.

Why Does MO Stand Out?

1. Differentiated product offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 93.6%
2. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 54.1%
3. MO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it’s becoming even less capital-intensive

Altria’s stock price of $67.14 implies a valuation ratio of 11.7x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Wabtec (WAB)

Market Cap: $48.62 billion

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.

Why Will WAB Outperform?

1. Operating margin expanded by 4 percentage points over the last five years as it scaled and became more efficient
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Robust free cash flow margin of 12.2% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety

At $286.79 per share, Wabtec trades at 25x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Raymond James (RJF)

Market Cap: $30.73 billion

Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE: RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.

Why Could RJF Be a Winner?

1. 10.8% annual revenue growth over the last two years was better than the sector average, highlighting the value of its products and services
2. Performance over the past five years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

Raymond James is trading at $159.74 per share, or 11.5x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.