The S&P 500 is one of the most recognized benchmarks in the stock market. In fact, an ETF that tracks the S&P 500, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is regularly one of the top ETFs by trading volume.
The index holds the Top 500 companies by market cap, but it goes a little deeper than that. Each company on the list must generate most of its revenue from the United States. Furthermore, companies must be profitable over the trailing 12 months and within the past quarter to be eligible for inclusion. If a company underperforms, it gets replaced by a qualifying stock that has been doing well.
It’s possible to beat the index if you pick the right stocks within the index. These three S&P 500 stocks look poised to outperform the index itself.
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