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. Taking that into account, here are three market-beating stocks that could turbocharge your returns.
Palantir Technologies (PLTR)
Five-Year Return: +1,100%
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ:PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
Why Is PLTR a Good Business?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 52.2% over the last year
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Palantir Technologies is trading at $176 per share, or 77.4x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
EMCOR (EME)
Five-Year Return: +748%
Through its network of over 70 subsidiaries, EMCOR (NYSE:EME) provides electrical, mechanical, and building construction and services
Why Are We Bullish on EME?
- Market share has increased this cycle as its 15.9% annual revenue growth over the last two years was exceptional
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 47.4% exceeded its revenue gains over the last two years
- Returns on capital are growing as management capitalizes on its market opportunities
EMCOR’s stock price of $658.22 implies a valuation ratio of 24.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Pathward Financial (CASH)
Five-Year Return: +105%
Formerly known as Meta Financial until its 2022 rebranding, Pathward Financial (NASDAQ:CASH) provides banking-as-a-service solutions and commercial finance products, enabling partners to offer financial services like prepaid cards, payment processing, and lending options.
Why Will CASH Outperform?
- Market share has increased this cycle as its 14% annual net interest income growth over the last five years was exceptional
- Differentiated product suite is reflected in its Strong performance of its loan book is reflected in its High-yielding loan book and low cost of funds are reflected in its best-in-class net interest margin of 7%
- Share buybacks catapulted its annual earnings per share growth to 15.7%, which outperformed its revenue gains over the last two years
At $67.58 per share, Pathward Financial trades at 1.6x forward P/B. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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 Tecnoglass (+1,754% 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
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