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.
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 leading the market forward.
AppLovin (APP)
Market Cap: $103.1 billion
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ:APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
Why Should You Buy APP?
- Annual revenue growth of 31.4% over the past two years was outstanding, reflecting market share gains
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $309.63 per share, AppLovin trades at 11.8x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
McDonald's (MCD)
Market Cap: $175.7 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 Does MCD Stand Out?
- Rapid rollout of new restaurants to capitalize on market opportunities makes sense given its strong same-store sales performance
- Asset-lite franchise model is reflected in its superior unit economics and a best-in-class gross margin of 57.2%
- MCD is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
McDonald's is trading at $248.94 per share, or 18.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Hewlett Packard Enterprise (HPE)
Market Cap: $80.66 billion
Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE:HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.
Why Is HPE a Good Business?
- ARR growth averaged 48.5% over the past two years, showing customers are willing to take multi-year bets on its offerings
- Dominant market position is represented by its $41.87 billion in revenue and gives it fixed cost leverage when sales grow
- Additional sales over the last two years increased its profitability as the 28.5% annual growth in its earnings per share outpaced its revenue
Hewlett Packard Enterprise’s stock price of $60.89 implies a valuation ratio of 13.4x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.