If You Want to Beat the Market, Start With These 3 Stocks
If You Want to Beat the Market, Start With These 3 Stocks
Vandita Jadeja Fri, July 24, 2026 at 2:01 AM UTC
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Investors are concerned about where the stock market is headed this year. While the S&P 500 has maintained upward momentum, the narrative has shifted toward significant sector dispersion. If you are worried about economic uncertainties, focusing on businesses with massive infrastructure investments and clear growth moats can help you navigate the risk of a late-year downturn.
The S&P 500 is currently tracking toward a 12% annual rally target, but megacap earnings power is doing most of the heavy lifting. Building a portfolio that continues to beat the market means choosing businesses with strong fundamentals and significant manufacturing or technological advantages. Here are three businesses that are currently outperforming the broader index.
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When the S&P 500 teeters, these three industry leaders offer a masterclass in resilience and explosive growth. © 24/7 Wall St.
Eli Lilly
One solid healthcare business for investors navigating a choppy market is Eli Lilly (NYSE:LLY | LLY Price Prediction). The company reported first-quarter 2026 revenue of $19.8 billion, a 56% jump driven by a 65% increase in volume. Within that total, Mounjaro generated $8.7 billion and Zepbound added $4.2 billion, representing year-over-year gains of 125% and 80%, respectively. Lilly also posted non-GAAP EPS of $8.55, well above analyst expectations, and raised its full-year 2026 revenue guidance by $2 billion to a range of $82 billion to $85 billion.
Lilly's growth story reaches well beyond its current lineup. The company recently announced an additional $4.5 billion investment in its Indiana manufacturing sites to meet global demand for Foundayo and Zepbound. On the pipeline front, the drug Omvoh showed four-year durable clearance in ulcerative colitis trials, reinforcing Lilly's position as a long-term compounder. Meanwhile, Foundayo, the newly approved oral GLP-1 pill for weight management, received a broad pharmacy rollout in April and is available on more than 12 major telehealth platforms.
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The stock is trading within range of its 52-week high of $1,133, leading some observers to speculate that a split could be on the horizon. With management scaling manufacturing and raising full-year targets, Lilly remains a top-tier conviction pick for 2026.
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Chevron Corporation
Chevron (NYSE:CVX) is proving to be a cash-flow powerhouse in the current environment. While crude oil price fluctuations often dominate short-term sentiment, Chevron has stayed focused on production volume, averaging approximately 3.86 million barrels of oil equivalent per day in Q1 2026. Worldwide production rose 15% year over year, with U.S. output surging 24% and exceeding 2 million barrels per day for the third consecutive quarter, thanks in large part to the integration of legacy Hess assets and continued Permian Basin growth.
Chevron's commitment to shareholder returns is well established. The company raised its quarterly dividend to $1.78 per share, marking 39 consecutive years of annual dividend increases and cementing its Dividend Aristocrat status. Management is on track to deliver $3 billion to $4 billion in structural cost reductions by year-end, with over 60% of those savings coming from durable efficiency gains rather than one-time cuts. In Q1 alone, Chevron returned $6 billion in cash to shareholders through $2.5 billion in repurchases and $3.5 billion in dividends.
With operations spanning Asia, the Americas, and Africa, Chevron carries less exposure to specific regional conflicts than many peers. Its limited Middle East footprint (less than 5% of total production) gave it a meaningful buffer when geopolitical disruptions tightened global crude supply during the quarter. That structural stability makes it a reliable anchor for any market-beating portfolio.
Alphabet
Tech giant Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction) has largely put to rest the concerns that it arrived late to the AI race. Google Cloud revenue surged 63% in Q1 2026 to $20 billion, with a backlog of $460 billion in committed sales already secured. Total company revenue reached $109.9 billion for the quarter, up 22% year over year, and Alphabet's operating income climbed 30% to $39.7 billion, reflecting a 36% margin. The stock has gained roughly 87% over the past year, recovering sharply off its 52-week low of $184.
Beyond search and cloud, Alphabet continues to broaden its AI presence into security and scientific research. The $32 billion acquisition of cybersecurity firm Wiz closed in early 2026 and is now integrated within Google Cloud, strengthening the company's enterprise security offerings. Additionally, subsidiary Isomorphic Labs secured a $2.1 billion funding round to deploy AlphaFold for drug discovery, creating high-value synergies in the biotech space.
Alphabet its full-year 2026 capital expenditure guidance to a range of $180 billion to $190 billion, reflecting both organic AI infrastructure buildout and the inclusion of the Intersect data-center acquisition that closed in March. Management expects 2027 capex to increase further, signaling long-term conviction in its AI infrastructure lead. For investors with patience, the combination of dominant search economics, accelerating cloud growth, and a deepening AI moat provides a compelling multi-year growth thesis.
Editor's note: This update corrects Chevron's dividend growth streak from 38 to 39 consecutive years of annual increases, refreshes Alphabet's year-over-year stock gain to approximately 87% based on current 52-week data, adds Chevron's confirmed Q1 2026 worldwide production figure of approximately 3.86 million boe/d, incorporates Eli Lilly's raised full-year 2026 revenue guidance of $82 billion to $85 billion along with individual product revenue for Mounjaro and Zepbound, and adds context on Alphabet's $32 billion Wiz acquisition now integrated within Google Cloud and its full-year capex range of $180 billion to $190 billion.
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Contact editorial@247wallst.com for any questions or corrections.
Source: “AOL Money”
