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.
It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. On that note, here are three market-beating stocks that deserve a spot on your list.
Core & Main (CNM)
Return Since IPO: +99.9%
Formerly a division of industrial distributor HD Supply, Core & Main (NYSE: CNM) is a provider of water, wastewater, and fire protection products and services.
Why Could CNM Be a Winner?
- Market share has increased this cycle as its 16% annual revenue growth over the last five years was exceptional
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.7% exceeded its revenue gains over the last two years
- Free cash flow margin expanded by 8.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Core & Main’s stock price of $47.39 implies a valuation ratio of 18.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Fair Isaac Corporation (FICO)
Five-Year Return: +117%
Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation (NYSE: FICO) develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.
Why Do We Love FICO?
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Strong free cash flow margin of 34% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
- Rising returns on capital show management is finding more attractive investment opportunities
At $1,064 per share, Fair Isaac Corporation trades at 22.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Core Natural Resources (CNR)
Five-Year Return: +547%
Tracing its origins to 1864 and operating some mines southwest of Pittsburgh, Core Natural Resources (NYSE: CNR) mines and exports metallurgical coal used in steelmaking and thermal coal for power generation.
Why Are We Positive On CNR?
- Market share has increased this cycle as its 14.2% annual revenue growth over the last nine years was exceptional
- Economies of scale give it some operating leverage when demand rises
- Robust free cash flow margin of 12.7% gives it many options for capital deployment
Core Natural Resources is trading at $85.10 per share, or 4.8x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 (+1,326% 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.
