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.
Identifying the best companies in the S&P 500 isn’t always easy, and that’s why we started StockStory. Keeping that in mind, here are three S&P 500 stocks that could deliver good returns.
Axon (AXON)
Market Cap: $33.11 billion
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Will AXON Beat the Market?
- ARR growth averaged 39.4% over the past two years, showing customers are willing to take multi-year bets on its offerings
- Operating margin expanded by 17.2 percentage points over the last five years as it scaled and became more efficient
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 28.8% annually
Axon is trading at $413.10 per share, or 54.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Rollins (ROL)
Market Cap: $25.99 billion
Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE: ROL) provides pest and wildlife control services to residential and commercial customers.
Why Are We Backing ROL?
- Impressive 11.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Offerings are mission-critical for businesses and lead to a best-in-class gross margin of 52.3%
- ROL is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety
Rollins’s stock price of $53.94 implies a valuation ratio of 42.9x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Universal Health Services (UHS)
Market Cap: $10.79 billion
With a network spanning 39 states and three countries, Universal Health Services (NYSE: UHS) operates acute care hospitals and behavioral health facilities across the United States, United Kingdom, and Puerto Rico.
Why Are We Fans of UHS?
- Economies of scale give it some operating leverage when demand rises
- Share repurchases over the last five years enabled its annual earnings per share growth of 14.3% to outpace its revenue gains
- Free cash flow margin grew by 4.7 percentage points over the last five years, giving the company more chips to play with
At $176.35 per share, Universal Health Services trades at 7.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.
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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
