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3 S&P 500 Stocks to Own for Decades
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. That said, here are three S&P 500 stocks positioned to outperform.
ServiceNow (NOW)
Market Cap: $203.7 billion
Founded by Fred Luddy, who coded the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE:NOW) is a software provider helping companies automate workflows across IT, HR, and customer service.
Why Will NOW Beat the Market?
- Growth in its current remaining performance obligations (cRPO) has averaged 22.3% over the last year, showing it has a steady sales pipeline that will drive future revenue
- Excellent operating margin highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
- Strong free cash flow margin of 32.1% enables it to reinvest or return capital consistently
ServiceNow’s stock price of $983.97 implies a valuation ratio of 15.1x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Trane Technologies (TT)
Market Cap: $93.64 billion
With low-pressure heating systems as its first product, Trane (NYSE:TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.
Why Do We Love TT?
- Annual revenue growth of 11.6% over the past two years was outstanding, reflecting market share gains this cycle
- Share repurchases over the last two years enabled its annual earnings per share growth of 23.7% to outpace its revenue gains
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its rising returns show it’s making even more lucrative bets
At $419.83 per share, Trane Technologies trades at 32.1x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Cencora (COR)
Market Cap: $57.52 billion
Formerly known as AmerisourceBergen until its 2023 rebranding, Cencora (NYSE:COR) is a global pharmaceutical distribution company that connects manufacturers with healthcare providers while offering logistics, data analytics, and consulting services.
Why Are We Bullish on COR?
- Unparalleled scale of $310.2 billion in revenue enables it to spread administrative costs across a larger membership base
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 14.5% exceeded its revenue gains over the last five years
- ROIC punches in at 57.3%, illustrating management’s expertise in identifying profitable investments
Cencora is trading at $298.14 per share, or 18.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.