3 S&P 500 Stocks on Our Watchlist Kayode Omotosho Tue, October 13, 2026 at 8:35 AM EDT 3 min read ^GSPC -0.06% MU -3.88% APA +2.09% CAT -0.14% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
The S&P 500 (^GSPC) is full of established businesses, but only some continue to outperform the market. A few standout companies are thriving thanks to strong fundamentals and sustained competitive advantages.
Not every big company is a great investment, and we're here to help you find the best opportunities. Keeping that in mind, here are three S&P 500 stocks positioned to outperform.
Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NASDAQ:MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.
Market share has increased this cycle as its 130% annual revenue growth over the last two years was exceptional
Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 65.6% outpaced its revenue gains
Robust free cash flow margin of 35.5% gives it many options for capital deployment, and its improved cash conversion implies it's becoming a less capital-intensive business
Micron's stock price of $975.45 implies a valuation ratio of 5.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free.
With its iconic yellow machinery working on construction sites, Caterpillar (NYSE:CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.
Offerings and unique value proposition resonate with customers, as seen in its above-market 10.2% annual sales growth over the last five years
Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Free cash flow margin expanded by 6.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Caterpillar is trading at $796.97 per share, or 27.8x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free.
Operating in three continents with a history stretching back to 1954, APA Corporation (NASDAQ:APA) explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the U.S., Egypt, and the U.K. North Sea.
Solid 4.9% annual revenue growth over the last ten years indicates its offerings solve complex business issues
Enormous revenue base of $8.37 billion provides significant leverage in supplier negotiations
Attractive asset base leads to wonderful unit economics and a top-tier gross margin of 67.7%
At $46.85 per share, APA Corporation trades at 8.4x forward P/E. Is now the right time to buy? Find out in our full research report, it's free.
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
