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 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 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% |
Source: Validea
—
Originally Posted June 12 2025 – Ten Top S&P 500 Stocks – June 2025
Disclosure: Interactive Brokers Third Party
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Validea Capital Management and is being posted with its permission. The views expressed in this material are solely those of the author and/or Validea Capital Management and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Join The Conversation
For specific platform feedback and suggestions, please submit it directly to our team using these instructions.
If you have an account-specific question or concern, please reach out to Client Services.
We encourage you to look through our FAQs before posting. Your question may already be covered!