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. On that note, here are three market-beating stocks that could turbocharge your returns.
Costco (COST)
Five-Year Return: +153%
Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ: COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.
Why Does COST Catch Our Eye?
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 6.6% over the past two years
- Massive revenue base of $293.6 billion makes up for its weaker gross margin and makes it a household name that influences purchasing decisions
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its rising returns show it’s making even more lucrative bets
Costco is trading at $958.06 per share, or 45.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
O'Reilly (ORLY)
Five-Year Return: +143%
Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ: ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
Why Are We Bullish on ORLY?
- Comparable store sales rose by 4.4% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Excellent operating margin of 19.4% highlights the efficiency of its business model
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
O'Reilly’s stock price of $87.03 implies a valuation ratio of 26.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Monster (MNST)
Five-Year Return: +85.8%
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Why Do We Love MNST?
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 28.4%, and its rise over the last year was fueled by some leverage on its fixed costs
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
- Industry-leading 36.2% return on capital demonstrates management’s skill in finding high-return investments, and its returns are growing as it capitalizes on even better market opportunities
At $86.92 per share, Monster trades at 37.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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.
