Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns, and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.
The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. Keeping that in mind, here are three market-beating stocks with room for further growth.
Nextracker (NXT)
Return Since IPO: +90.2%
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dabhi solar farm project, Nextracker (NASDAQ: NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Why Are We Backing NXT?
- Backlog has averaged 46.5% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Free cash flow margin jumped by 13.6 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Returns on capital are climbing as management makes more lucrative bets
Nextracker’s stock price of $57.92 implies a valuation ratio of 14.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
McKesson (MCK)
Five-Year Return: +349%
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE: MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Should You Buy MCK?
- 13.9% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Enormous revenue base of $359.1 billion gives it economies of scale and advantages over new entrants due to the industry’s regulatory complexity
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 17.2% exceeded its revenue gains over the last five years
At $715.99 per share, McKesson trades at 19.4x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Hims & Hers Health (HIMS)
Five-Year Return: +449%
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE: HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
Why Do We Love HIMS?
- Customer growth averaged 48.6% over the past two years, showing its ability to "land" new contracts and potentially "expand" them later - a powerful one-two punch for sales
- Earnings per share grew by 37% annually over the last four years and trumped its peers
- Free cash flow margin grew by 23.5 percentage points over the last five years, giving the company more chips to play with
Hims & Hers Health is trading at $55.05 per share, or 41.4x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
