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. On that note, here are three market-beating stocks that deserve a spot on your list.
W.W. Grainger (GWW)
Five-Year Return: +204%
Founded as a supplier of motors, W.W. Grainger (NYSE: GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.
Why Are We Fans of GWW?
- Healthy operating margin of 14.8% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage
- Share buybacks catapulted its annual earnings per share growth to 20.7%, which outperformed its revenue gains over the last five years
- ROIC punches in at 37.8%, illustrating management’s expertise in identifying profitable investments
W.W. Grainger’s stock price of $1,323 implies a valuation ratio of 27.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
American Superconductor (AMSC)
Five-Year Return: +169%
Founded in 1987, American Superconductor (NASDAQ: AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.
Why Will AMSC Outperform?
- Market share has increased this cycle as its 43.6% annual revenue growth over the last two years was exceptional
- Free cash flow margin grew by 25.5 percentage points over the last five years, giving the company more chips to play with
- Rising returns on capital show the company is starting to reap the benefits of its past investments
American Superconductor is trading at $31.91 per share, or 30.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
IonQ (IONQ)
Five-Year Return: +362%
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
Why Does IONQ Stand Out?
- Annual revenue growth of 181% over the last two years was superb and indicates its market share increased during this cycle
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Adjusted operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
At $46.24 per share, IonQ trades at 51.4x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
