S&P 500: Value Investing Analysis

About the S&P 500

This index contains 982 stocks, of which we've analyzed 32. The suggested margin of safety is 20%.

Index membership signals liquidity and institutional acceptance, making these stocks suitable for value investors seeking established companies with adequate trading volume.

S&P 500 Stocks: Value Metrics

Review the stocks in this index to compare valuations and identify companies trading below intrinsic value. Use these metrics to focus your research on the most promising opportunities.

Discounted stocks in the S&P 500 index
Company Current Price Current Price Discount
10 years
The Goodyear Tire & Rubber Company
(GT)
$8.80 80%
The Goodyear Tire & Rubber Company
(GT)
$8.80 80%
Prudential Financial
(PRU)
$113.33 60%
Prudential Financial
(PRU)
$113.33 60%
DuPont de Nemours
(DD)
$40.89 40%
The Mosaic Company
(MOS)
$24.06 40%
DuPont de Nemours
(DD)
$40.89 40%
The Mosaic Company
(MOS)
$24.06 40%
Tyson Foods
(TSN)
$58.58 20%
Tyson Foods
(TSN)
$58.58 20%
PACCAR Inc
(PCAR)
$111.44 none
Paychex
(PAYX)
$114.00 none
Mastercard Incorporated
(MA)
$577.90 none
Sempra Energy
(SRE)
$88.91 none
The Southern Company
(SO)
$87.54 none
The Southern Company
(SO)
$87.54 none
Masco Corporation
(MAS)
$64.60 none
Johnson Controls International plc
(JCI)
$121.71 none
Masco Corporation
(MAS)
$64.60 none
Mastercard Incorporated
(MA)
$577.90 none
Marcus & Millichap
(MMI)
$27.54 none
Nasdaq
(NDAQ)
$98.87 none
Newmont Corporation
(NEM)
$99.81 none
Norfolk Southern Corporation
(NSC)
$292.05 none
PACCAR Inc
(PCAR)
$111.44 none
Paychex
(PAYX)
$114.00 none
Johnson Controls International plc
(JCI)
$121.71 none
Sempra Energy
(SRE)
$88.91 none
Marcus & Millichap
(MMI)
$27.54 none
Newmont Corporation
(NEM)
$99.81 none
Nasdaq
(NDAQ)
$98.87 none
Norfolk Southern Corporation
(NSC)
$292.05 none

How to Invest in S&P 500 Stocks

Index-Specific Investment Considerations

When evaluating S&P 500 constituents, consider these key factors:

  • Index weighting: Understand whether stocks are market-cap weighted or equally weighted to gauge concentration risk
  • Rebalancing dynamics: Index reconstitutions can create temporary mispricings as passive funds adjust holdings
  • Sector exposure: Review sector composition to ensure alignment with your portfolio diversification goals
  • Liquidity profile: Index membership typically ensures adequate trading volume for entry and exit
  • Quality screening: Use index standards as a baseline, then apply growth forecasting and valuation analysis

✓ Index Stock Analysis Checklist

  • Compare P/E ratios within the index
  • Evaluate free cash flow generation
  • Assess debt levels relative to index peers
  • Check dividend sustainability
  • Review competitive positioning
  • Calculate adequate margin of safety

Common Index Investing Pitfalls

  • Assuming index membership = automatic buy
  • Ignoring valuation in favor of brand recognition
  • Overlooking concentration in top holdings
  • Buying at index inclusion peaks (momentum traps)
  • Neglecting sector diversification within index
  • Failing to reassess as fundamentals change