Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns, and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.

The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. On that note, here are three market-beating stocks with room for further growth.

Howmet (HWM)

Five-Year Return: +619%

Inventing the first forged aluminum truck wheel, Howmet (NYSE: HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.

Why Do We Love HWM?

1. Impressive 13.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Share repurchases over the last two years enabled its annual earnings per share growth of 42.8% to outpace its revenue gains
3. Free cash flow margin expanded by 12.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Howmet is trading at $232.95 per share, or 39.2x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Mercury General (MCY)

Five-Year Return: +76.1%

Founded in 1961 and maintaining a network of over 6,300 independent agents across the country, Mercury General (NYSE: MCY) is an insurance company that primarily sells automobile insurance policies through independent agents in 11 states, with a strong focus on California.

Why Could MCY Be a Winner?

1. Strong 11.9% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 87% over the last two years outstripped its revenue performance
3. Balance sheet strength has increased this cycle as its 31.1% annual book value per share growth over the last two years was exceptional

At $99.46 per share, Mercury General trades at 8.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

1st Source (SRCE)

Five-Year Return: +81.4%

Tracing its roots back to 1863 during the Civil War era, 1st Source Corporation (NASDAQ: SRCE) is a regional bank holding company that provides commercial, consumer, specialty finance, and wealth management services across Indiana, Michigan, and Florida.

Why Do We Like SRCE?

1. Net interest margin expanded by 68.5 basis points (100 basis points = 1 percentage point) over the last two years, providing additional flexibility for investments
2. Performance over the past two years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Impressive 9.3% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle

1st Source’s stock price of $86.09 implies a valuation ratio of 1.5x forward P/B. Is now the right time to buy? 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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.