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3 S&P 500 Stocks to Consider Right Now

Oct 6, 2026 12:36 PM · YahooFinance

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.

Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ:LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.

Market share has increased this cycle as its 24.8% annual revenue growth over the last two years was exceptional

Highly efficient business model is illustrated by its impressive 33.8% operating margin, and it turbocharged its profits by achieving some fixed cost leverage

ROIC punches in at 64.2%, illustrating management's expertise in identifying profitable investments, and its rising returns show it's making even more lucrative bets

Lam Research's stock price of $346.39 implies a valuation ratio of 36.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free.

Serving both the DIY customer and professional mechanic, O'Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.

Why Will ORLY Beat the Market?

Comparable store sales rose by 4.9% on average over the past two years, demonstrating its ability to drive increased spending at existing locations

Disciplined cost controls and effective management resulted in a strong two-year operating margin of 19.4%

Industry-leading 42.2% return on capital demonstrates management's skill in finding high-return investments

O'Reilly is trading at $83.98 per share, or 24.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it's free.

Formed through a spinoff, Xylem (NYSE:XYL) manufactures and services engineered products across a wide variety of applications primarily in the water sector.

Annual revenue growth of 11.9% over the past five years was outstanding, reflecting market share gains this cycle

Share repurchases over the last two years enabled its annual earnings per share growth of 16.3% to outpace its revenue gains

Free cash flow margin jumped by 7.8 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $102.59 per share, Xylem trades at 17.4x forward P/E. Is now a good time to buy? Find out in our full research report, it's free.

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.


Original source: YahooFinance