ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

3 S&P 500 Stocks with Solid Fundamentals

LDOS Cover Image

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. Keeping that in mind, here are three S&P 500 stocks that could deliver good returns.

Leidos (LDOS)

Market Cap: $20 billion

Formed through the split of IT services company SAIC, Leidos (NYSE: LDOS) offers technology and engineering solutions such as military training systems for the defense, civil, and health markets.

Why Do We Like LDOS?

  1. Sales pipeline is in good shape as its backlog averaged 20.2% growth over the past two years
  2. Operating margin improvement of 3.9 percentage points over the last five years demonstrates its ability to scale efficiently
  3. Share buybacks catapulted its annual earnings per share growth to 28.2%, which outperformed its revenue gains over the last two years

At $159.15 per share, Leidos trades at 12.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

W. R. Berkley (WRB)

Market Cap: $24.71 billion

Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE: WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.

Why Is WRB Interesting?

  1. Net premiums earned expanded by 12.4% annually over the last five years, demonstrating exceptional market penetration this cycle
  2. Share repurchases over the last five years enabled its annual earnings per share growth of 33% to outpace its revenue gains
  3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

W. R. Berkley is trading at $65.82 per share, or 2.3x forward P/B. Is now a good time to buy? See for yourself in our full research report, it’s free.

Devon Energy (DVN)

Market Cap: $30.76 billion

With operations spanning from the oil-rich Delaware Basin to the Bakken formation of North Dakota, Devon Energy (NYSE: DVN) explores for and produces oil, natural gas, and natural gas liquids from wells drilled across the United States.

Why Should You Buy DVN?

  1. Annual revenue growth of 27.8% over the past five years was outstanding, reflecting market share gains this cycle
  2. Unparalleled revenue scale of $17.02 billion gives it advantageous pricing and terms with suppliers
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Devon Energy’s stock price of $49.49 implies a valuation ratio of 10x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  209.77
-0.80 (-0.38%)
AAPL  255.92
+0.29 (0.11%)
AMD  217.50
+7.29 (3.47%)
BAC  49.38
+0.11 (0.22%)
GOOG  294.46
-0.44 (-0.15%)
META  574.46
-4.77 (-0.82%)
MSFT  373.46
+4.09 (1.11%)
NVDA  177.39
+1.64 (0.93%)
ORCL  146.38
+1.15 (0.79%)
TSLA  360.59
-20.67 (-5.42%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.