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.
Even in the S&P 500, only a few stocks will consistently outperform, which is why we built StockStory. Keeping that in mind, here are three S&P 500 stocks leading the market forward.
Copart (CPRT)
Market Cap: $28.66 billion
Starting as a single salvage yard in California in 1982, Copart (NASDAQ: CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.
Why Are We Backing CPRT?
- Impressive 13.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
- CPRT 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 has even more resources to invest or distribute
- Industry-leading 31.8% return on capital demonstrates management’s skill in finding high-return investments
Copart’s stock price of $30.93 implies a valuation ratio of 18.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Coherent (COHR)
Market Cap: $73.75 billion
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE: COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Why Does COHR Catch Our Eye?
- Impressive 19.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Projected revenue growth of 34.9% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings per share grew by 82.4% annually over the last two years and trumped its peers
Coherent is trading at $369.85 per share, or 56.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Ares (ARES)
Market Cap: $28.34 billion
With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE: ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.
Why Will ARES Beat the Market?
- Impressive 23.2% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 21.3% annually
At $123.58 per share, Ares trades at 20.8x forward P/E. Is now the right time to buy? See for yourself in our comprehensive 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 meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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.
