The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital, and those that can maintain this trifecta year in and year out often become the legends of the investing world.
It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. Keeping that in mind, here are three market-beating stocks that deserve a spot on your list.
Intuit (INTU)
Five-Year Return: +150%
Created in 1983 when founder Scott Cook watched his wife struggle to reconcile the family's checkbook, Intuit provides tax and accounting software for small and medium-sized businesses.
Why Could INTU Be a Winner?
- Billings growth has averaged 15.8% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Strong free cash flow margin of 33.6% enables it to reinvest or return capital consistently
Intuit’s stock price of $776.14 implies a valuation ratio of 10.6x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
EMCOR (EME)
Five-Year Return: +758%
Through its network of over 70 subsidiaries, EMCOR (NYSE:EME) provides electrical, mechanical, and building construction and services
Why Will EME Beat the Market?
- Market share has increased this cycle as its 15.6% annual revenue growth over the last two years was exceptional
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 54.8% exceeded its revenue gains over the last two years
- Returns on capital are climbing as management makes more lucrative bets
At $624 per share, EMCOR trades at 25.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Granite Construction (GVA)
Five-Year Return: +420%
Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE:GVA) is a provider of infrastructure solutions for roads, bridges, and other projects.
Why Do We Like GVA?
- Market share has increased this cycle as its 12.2% annual revenue growth over the last two years was exceptional
- Earnings per share grew by 60.9% annually over the last two years and trumped its peers
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
Granite Construction is trading at $92.28 per share, or 8.6x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
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