These 3 Stocks Are Smashing the S&P 500—Here’s Why You Should Take Notice!

The S&P 500 is down 5.1% year-to-date (YTD) in 2025, but here’s the kicker: only 33% of its 500 stocks have outperformed the index’s decline. That’s a record-low percentage, and it’s all because the market is being dragged down by a handful of tech giants like Apple (-12.99%), Microsoft (-10.13%), and Nvidia (-18.33%). Meanwhile, three stocks—Philip Morris (PM), CVS Health (CVS), and Newmont (NEM)—are soaring while the rest of the index struggles. Let’s break down why these three deserve your attention.

1. Philip Morris (PM): The Dividend King Outperforming with 32.58% YTD

Philip Morris isn’t just surviving—it’s thriving. This tobacco giant has delivered a 32.58% YTD return, thanks to its focus on smoke-free products. The company’s “smoke-free” category, which includes heated tobacco and e-cigarettes, saw sales jump to 40 billion units in 2024—up 14% from the previous year.

But wait, there’s more: PM has been a dividend machine, with a 3.5% yield and consistent growth. Analysts love this: 14% EPS growth and 7% sales growth in 2024 mean this stock isn’t just a “sin stock”—it’s a cash-flow powerhouse.

2. CVS Health (CVS): Healthcare’s Comeback Champion with a 50% YTD Surge

CVS is rewriting its story. After years of declining sales and investor skepticism, this pharmacy giant has turned things around with a 50% YTD return. The secret? Cost-cutting, strategic investments in healthcare tech, and a projected 23% EPS jump in its upcoming Q2 earnings.

CVS’s move to focus on high-margin prescription drug distribution and healthcare services is paying off. Even though rising costs threaten its margins, the stock’s momentum is undeniable. Investors are betting that CVS can dominate the $1.4 trillion U.S. healthcare market.

3. Newmont (NEM): Gold’s Rally Fuels a 30% YTD Gain

Newmont, the world’s largest gold miner, is shining bright. With gold prices averaging $2,643/oz in early 2025—up 30% from $2,004/oz in 2024—NEM’s 30% YTD return makes sense.

This stock isn’t just a gold play; it’s a cash-flow juggernaut. Newmont generated $1.6 billion in free cash flow last quarter, funding dividends and debt reduction. Plus, with central banks buying record amounts of gold to hedge against inflation, Newmont’s future looks bright.

Why These Stocks Are Beating the S&P 500’s Drag

The S&P 500’s 5.1% decline is a trap for passive investors. The index is skewed toward megacaps like Apple (-12.99%) and Alphabet (-18.47%), whose losses drag down the entire market. But these three stocks are in sectors with real-world demand: consumer staples (PM), healthcare (CVS), and commodities (NEM).

Meanwhile, sector rotation is alive:
- Energy and utilities are up YTD, but PM, CVS, and NEM are outperforming even those.
- Dividend stability (PM’s 3.5%, NEM’s 2.3%) and cash flow resilience (CVS’s $37 billion in sales) are winning in an uncertain economy.

Conclusion: Don’t Follow the Crowd—Follow the Winners

The S&P 500’s decline is a gift for active investors. Only 33% of its stocks are outperforming, and these three—PM, CVS, and NEM—are among the best.

• Philip Morris is a dividend-driven growth story in a regulated industry.
• CVS is proving that healthcare can still innovate and dominate.
• Newmont is a pure play on gold, a safe haven in volatile markets.

The lesson? Avoid the megacaps dragging the index down and focus on companies with strong fundamentals, sector tailwinds, and—most importantly—the ability to outpace the crowd. These three aren’t just surviving 2025—they’re leading the charge.

Final Note: The S&P 500’s structure is its weakness. Don’t let its top-heavy tech bias blind you to the 33% of stocks (like these three) that are thriving. Act now—before the market’s next shakeup.