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.
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 deserve a spot on your list.
Seagate (STX)
Five-Year Return: +539%
One of two remaining major hard drive manufacturers after decades of industry consolidation, Seagate (NASDAQ: STX) manufactures hard disk drives and solid state drives that store data in data centers, cloud systems, and consumer devices.
Why Do We Like STX?
- Impressive 24.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Sales outlook for the upcoming 12 months calls for 29.8% growth, an acceleration from its two-year trend
- Operating margin expansion of 8 percentage points over the last five years shows the company optimized its expenses
At $595.66 per share, Seagate trades at 33.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Construction Partners (ROAD)
Five-Year Return: +279%
Founded in 2001, Construction Partners (NASDAQ: ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.
Why Is ROAD a Top Pick?
- Market share has increased this cycle as its 37.5% annual revenue growth over the last two years was exceptional
- Additional sales over the last two years increased its profitability as the 49.6% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 7.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Construction Partners’s stock price of $118.75 implies a valuation ratio of 40.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Hims & Hers Health (HIMS)
Five-Year Return: +136%
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 Is HIMS a Good Business?
- Customer trends over the past two years show it’s maintaining a steady flow of new contracts that can potentially increase in value over time
- Free cash flow margin grew by 16.9 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
Hims & Hers Health is trading at $28.17 per share, or 26.1x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
