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.
Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Taking that into account, here are three market-beating stocks that deserve a spot on your list.
Copart (CPRT)
Five-Year Return: +87%
Starting as a single salvage yard in California in 1982, Copart (NASDAQ: CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.
Why Are We Bullish on CPRT?
- Annual revenue growth of 15.6% over the past five years was outstanding, reflecting market share gains this cycle
- CPRT is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $46.22 per share, Copart trades at 26.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Cal-Maine (CALM)
Five-Year Return: +137%
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ: CALM) produces, packages, and distributes eggs.
Why Will CALM Beat the Market?
- Annual revenue growth of 33.9% over the last three years was superb and indicates its market share is rising
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 110% annually, topping its revenue gains
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
Cal-Maine is trading at $108.40 per share, or 7.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
AbbVie (ABBV)
Five-Year Return: +115%
Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE: ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.
Why Could ABBV Be a Winner?
- Massive revenue base of $58.33 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Strong free cash flow margin of 36.6% enables it to reinvest or return capital consistently
- ROIC punches in at 17.9%, illustrating management’s expertise in identifying profitable investments
AbbVie’s stock price of $198.26 implies a valuation ratio of 15.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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