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. Taking that into account, here are three market-beating stocks that deserve a spot on your list.
MACOM (MTSI)
Five-Year Return: +504%
Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
Why Does MTSI Stand Out?
- Annual revenue growth of 29.8% over the past two years was outstanding, reflecting market share gains this cycle
- Sales outlook for the upcoming 12 months calls for 36.5% growth, an acceleration from its two-year trend
- Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 18.4% annually
MACOM is trading at $351.35 per share, or 58.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Enpro (NPO)
Five-Year Return: +226%
Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE: NPO) designs, manufactures, and sells products used for machinery in various industries.
Why Does NPO Catch Our Eye?
- Operating margin expanded by 5 percentage points over the last five years as it scaled and became more efficient
- Earnings per share grew by 16.4% annually over the last five years and trumped its peers
- NPO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Enpro’s stock price of $305.33 implies a valuation ratio of 31.9x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
First BanCorp (FBP)
Five-Year Return: +88%
Tracing its roots back to 1948 in San Juan, First BanCorp (NYSE: FBP) is a bank holding company that provides commercial banking, consumer financing, mortgage services, and insurance products across Puerto Rico, the U.S. mainland, and the Caribbean.
Why Could FBP Be a Winner?
- Efficiency ratio improvement of 11 percentage points over the last five years demonstrates its ability to scale effectively
- Share repurchases over the last five years enabled its annual earnings per share growth of 23.6% to outpace its revenue gains
At $23.75 per share, First BanCorp trades at 1.8x forward P/B. 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 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.
