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3 Market-Beating Stocks on Our Watchlist

SFM Cover Image

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.

Sprouts (SFM)

Five-Year Return: +502%

Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ: SFM) is a grocery store chain emphasizing natural and organic products.

Why Do We Love SFM?

  1. Rapid rollout of new stores to capitalize on market opportunities makes sense given its strong same-store sales performance
  2. Same-store sales growth averaged 7.5% over the past two years, showing it’s bringing new and repeat shoppers into its stores
  3. Exciting sales outlook for the upcoming 12 months calls for 11.8% growth, an acceleration from its six-year trend

At $124.09 per share, Sprouts trades at 22.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Federated Hermes (FHI)

Five-Year Return: +151%

With roots dating back to 1955 and a pioneering role in money market funds, Federated Hermes (NYSE: FHI) is an investment management firm that offers a wide range of funds and strategies for institutional and individual investors.

Why Do We Like FHI?

  1. Share repurchases over the last two years enabled its annual earnings per share growth of 20.6% to outpace its revenue gains
  2. ROE punches in at 24.7%, illustrating management’s expertise in identifying profitable investments

Federated Hermes’s stock price of $53.11 implies a valuation ratio of 11.6x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Ameris Bancorp (ABCB)

Five-Year Return: +255%

Tracing its roots back to 1971 and expanding significantly through both organic growth and strategic acquisitions, Ameris Bancorp (NYSE: ABCB) is a financial holding company that provides a full range of banking services to retail and commercial customers across select markets in the southeastern United States.

Why Are We Positive On ABCB?

  1. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 15% outpaced its revenue gains
  2. Annual tangible book value per share growth of 14.6% over the past five years was outstanding, reflecting strong capital accumulation this cycle
  3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

Ameris Bancorp is trading at $76.41 per share, or 1.3x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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