The S&P 500 is home to America’s corporate giants – companies with massive scale, global reach, and market-moving influence. But while every S&P 500 member is large-cap by definition, they are not all created equal when it comes to fundamental strength.
At Validea, we score every S&P 500 stock using a multi-model system rooted in the principles of legendary investors like Warren Buffett and Peter Lynch. This composite approach looks across profitability, valuation, growth, quality, and more to identify companies with durable fundamentals – not just high share prices or momentum.
Below, we spotlight 10 companies that currently stand out across a range of fundamental metrics, signaling potential for long-term investors seeking quality at reasonable prices.
10 Fundamentally Attractive Stocks in the S&P 500
These companies combine strong earnings, healthy balance sheets, attractive valuations, and business model strength – ranking them at the top of Validea’s fundamentally-driven system.
| Ticker | Company | Price | Market Cap ($M) | P/E | P/S | P/B | P/CF | Dividend Yield |
|---|---|---|---|---|---|---|---|---|
| PHM | PulteGroup | $100.57 | $20,157 | 7.1 | 1.1 | 1.6 | 6.6 | 0.8% |
| RJF | Raymond James | $148.03 | $29,866 | 14.3 | 1.9 | 2.5 | 12.6 | 1.3% |
| XOM | Exxon Mobil | $103.52 | $446,171 | 13.7 | 1.3 | 1.7 | 7.6 | 3.8% |
| MRK | Merck & Co. | $77.59 | $194,831 | 11.3 | 3.1 | 4.0 | 8.8 | 4.1% |
| LULU | Lululemon | $321.20 | $38,592 | 21.8 | 3.6 | 9.4 | 17.1 | 0.0% |
| AMAT | Applied Materials | $161.83 | $129,868 | 19.7 | 4.6 | 6.9 | 18.1 | 1.0% |
| NVR | NVR Inc | $7,210.65 | $21,083 | 14.8 | 2.0 | 5.4 | 13.1 | 0.0% |
| CVX | Chevron | $137.83 | $240,750 | 15.8 | 1.3 | 1.6 | 7.3 | 4.8% |
| EIX | Edison International | $57.10 | $21,970 | 8.1 | 1.3 | 1.5 | 3.9 | 5.6% |
| JPM | JPMorgan Chase | $265.29 | $737,266 | 13.0 | 4.1 | 2.2 | 11.1 | 1.8% |
Where Do the Magnificent Seven Rank?
The MAG 7 Seven – Apple, Microsoft, Nvidia, Alphabet (Google), Amazon, Meta, and Tesla – are household names and top weightings in most index funds. But when scored on fundamentals, they don’t dominate the list:
- Microsoft (MSFT) – #116
- Apple (AAPL) – #164
- Alphabet (GOOGL) – #77
- Amazon (AMZN) – #147
- Meta (META) – #87
- Nvidia (NVDA) – #215
- Tesla (TSLA) – #295
These firms have immense scale and profitability, but also high valuations and, in some cases, declining growth momentum – factors that weigh on their overall fundamental profiles.
Leadership Changes Over Time
History teaches us that today’s market darlings aren’t guaranteed to stay on top. In 2000, the biggest companies were Cisco, GE, and Intel – none of which crack the top 20 today. In 2010, it was Exxon, Walmart, and Microsoft. Now, it’s a new set.
Market leadership rotates. Fundamentals fade and recover. Trends shift. Which is why evaluating stocks based on current fundamental quality – not past performance or brand recognition—is a powerful tool for long-term investors.
Final Takeaways
The S&P 500 contains a wealth of fundamentally sound, attractively valued companies that fly under the radar. By looking beyond the headlines and focusing on fundamental investment criteria, investors can uncover strong opportunities that are hiding in plain sight.
Further Research
If you’d like to explore these concepts more deeply, here are some helpful resources on Validea:
- 🔍 Validea Guru Stock Screener – Find stocks based on fundamental criteria from 22 proven strategies.
- 📊 Top-Rated S&P 500 Stocks – See the current top stocks in teh S&P 500 according to Validea’s fundamental models.
- 📈 Factor Scores on Stocks & Exchange Traded Funds – See how your stocks or ETFs rate based on popular investment factors (value, momentum, quality, volatility).
