
Stocks that outperform the market usually share key traits such as rising sales, expanding margins, and increasing returns on capital. The select few that can do all three for many years are often the ones that make you life-changing money.
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 could turbocharge your returns.
GE Aerospace (GE)
Five-Year Return: +179%
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
Why Are We Backing GE?
- Annual revenue growth of 15.1% over the past two years was outstanding, reflecting market share gains this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Robust free cash flow margin of 16.3% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $292.88 per share, GE Aerospace trades at 40.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
EXL (EXLS)
Five-Year Return: +78%
Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ: EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.
Why Are We Bullish on EXLS?
- Market share has increased this cycle as its 16.8% annual revenue growth over the last five years was exceptional
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
EXL is trading at $30.75 per share, or 14x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Berkshire Hathaway (BRK.A)
Five-Year Return: +90.3%
Led by legendary investor Warren Buffett since 1965, transforming it from a struggling textile manufacturer into a corporate giant, Berkshire Hathaway (NYSE: BRK.A) is a diversified holding company that owns businesses across insurance, railroads, utilities, manufacturing, retail, and services sectors.
Why Do We Watch BRK.A?
- Earnings per share have comfortably outperformed the peer group average over the last two years, increasing by 18.9% annually
- Impressive 15.9% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Berkshire Hathaway’s stock price of $723,955 implies a valuation ratio of 22.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.