The S&P 500 represents a diverse collection of over 500 companies spanning multiple sectors, with many running profitable and well-established operations backed by solid fundamentals that merit serious consideration from investors. This breadth presents compelling opportunities for those prepared to look beyond the most widely followed stocks through careful analysis.
Using Validea’s robust analytical platform that combines 22 distinct investment approaches, we’ve pinpointed ten S&P 500 stocks displaying strong fundamental qualities that look especially appealing given their current market prices. Our framework draws from proven strategies developed by investing masters including Warren Buffett’s emphasis on lasting competitive moats and strong returns on capital, Peter Lynch’s focus on reasonable pricing relative to growth potential, and Benjamin Graham’s principle of maintaining adequate safety margins.
Though these companies might not generate the same media buzz as prominent technology giants, they excel in key areas that matter most for long-term wealth building. They produce reliable cash flows, maintain healthy balance sheets, hold defendable competitive positions, and trade at attractive prices compared to their underlying business value. These qualities position them well to generate steady returns for investors who prioritize fundamental strength and take a patient, value-oriented approach.
Here are the top 10 most fundamentally sound stocks within the index using our guru models as of June of 2025.
| Ticker | Company Name | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Price/ Cash Flow | Dividend Yield |
|---|---|---|---|---|---|---|---|---|---|
| PHM | PULTEGROUP INC | $103.42 | $20,728 | 7.3 | 1.2 | 47 | 1.7 | 6.8 | 0.8% |
| RJF | RAYMOND JAMES FINANCIAL INC | $147.73 | $29,805 | 14.2 | 1.9 | 76 | 2.5 | 12.6 | 1.3% |
| XOM | EXXON MOBIL CORP | $109.31 | $471,126 | 14.5 | 1.4 | 51 | 1.8 | 8.0 | 3.6% |
| MRK | MERCK & CO INC | $80.32 | $201,686 | 11.7 | 3.2 | 27 | 4.2 | 9.1 | 3.9% |
| LULU | LULULEMON ATHLETICA INC | $252.28 | $30,235 | 17.1 | 2.8 | 38 | 7.4 | 13.3 | 0.0% |
| NVR | NVR INC | $7,296.57 | $21,334 | 15.0 | 2.0 | 50 | 5.4 | 13.3 | 0.0% |
| CVX | CHEVRON CORP | $144.78 | $252,890 | 16.6 | 1.3 | 47 | 1.7 | 7.7 | 4.6% |
| EIX | EDISON INTERNATIONAL | $49.61 | $19,088 | 7.0 | 1.1 | 30 | 1.3 | 3.4 | 6.4% |
| JPM | JPMORGAN CHASE & CO | $268.15 | $745,214 | 13.2 | 4.1 | 82 | 2.3 | 11.2 | 1.8% |
| WFC | WELLS FARGO & CO | $74.93 | $243,836 | 13.5 | 3.0 | 79 | 1.5 | 9.2 | 2.1% |
Further Research
