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.
Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Keeping that in mind, here are three market-beating stocks with room for further growth.
Astronics (ATRO)
Five-Year Return: +452%
Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ: ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.
Why Are We Bullish on ATRO?
- Annual revenue growth of 16.5% over the past five years was outstanding, reflecting market share gains this cycle
- Free cash flow margin jumped by 10.3 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Improving returns on capital suggest its past investments are beginning to deliver value
At $62.36 per share, Astronics trades at 21.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Tutor Perini (TPC)
Five-Year Return: +488%
Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE: TPC) is a civil and building construction company offering diversified general contracting and design-build services.
Why Will TPC Beat the Market?
- Impressive 18.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Free cash flow margin grew by 7.6 percentage points over the last five years, giving the company more chips to play with
- Historical investments are beginning to pay off as its returns on capital are growing
Tutor Perini is trading at $78.25 per share, or 14.7x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Sezzle (SEZL)
Return Since IPO: +847%
Founded in 2016 as an alternative to traditional credit cards for younger shoppers, Sezzle (NASDAQ: SEZL) provides a payment platform that allows consumers to split purchases into four interest-free installments over six weeks at participating retailers.
What Makes SEZL Stand Out?
- Annual revenue growth of 66.1% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings per share grew by 22.7% annually over the last two years, massively outpacing its peers
- Industry-leading 16.4% return on equity demonstrates management’s skill in finding high-return investments
Sezzle’s stock price of $128.03 implies a valuation ratio of 21.2x forward P/E. Is now the time to initiate a position? Find out in our full 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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
