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3 Market-Beating Stocks with Exciting Potential

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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. On that note, here are three market-beating stocks that deserve a spot on your list.

AZZ (AZZ)

Five-Year Return: +167%

Responsible for projects like nuclear facilities, AZZ (NYSE: AZZ) is a provider of metal coating and power infrastructure solutions.

Why Does AZZ Stand Out?

  1. Annual revenue growth of 17.3% over the last five years was superb and indicates its market share increased during this cycle
  2. Healthy operating margin of 15.5% shows it’s a well-run company with efficient processes, and its operating leverage amplified its profits over the last five years
  3. Earnings per share grew by 17.5% annually over the last five years and trumped its peers

At $139.38 per share, AZZ trades at 19.8x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Hewlett Packard Enterprise (HPE)

Five-Year Return: +260%

Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE: HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.

Why Are We Bullish on HPE?

  1. Offerings are pivotal for their customers’ operations as its ARR has averaged 50.7% growth over the past two years
  2. Massive revenue base of $38.79 billion makes it a well-known name that influences purchasing decisions
  3. Exciting sales outlook for the upcoming 12 months calls for 26.2% growth, an acceleration from its two-year trend

Hewlett Packard Enterprise’s stock price of $52.93 implies a valuation ratio of 13.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

HCI Group (HCI)

Five-Year Return: +75.1%

Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE: HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing.

What Makes HCI Stand Out?

  1. Market penetration was impressive this cycle as its net premiums earned expanded by 15.5% annually over the last two years
  2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 36.3% annually, topping its revenue gains
  3. Impressive 42.4% annual book value per share growth over the last two years indicates it’s building equity value this cycle

HCI Group is trading at $182.04 per share, or 1.9x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

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