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.
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 with room for further growth.
Broadcom (AVGO)
Five-Year Return: +632%
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ:AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Why Should You Buy AVGO?
- Annual revenue growth of 38% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings per share have massively outperformed its peers over the last five years, increasing by 29.8% annually
- Robust free cash flow margin of 43.2% gives it many options for capital deployment
Broadcom’s stock price of $355.09 implies a valuation ratio of 19.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
State Street (STT)
Five-Year Return: +97.9%
Dating back to 1792 when Boston's Long Wharf was the center of global shipping and trade, State Street (NYSE:STT) provides custody, investment management, and other financial services to institutional investors like pension funds, asset managers, and central banks worldwide.
Why Could STT Be a Winner?
- Share buybacks catapulted its annual earnings per share growth to 25.2%, which outperformed its revenue gains over the last two years
- Management team has demonstrated it can invest in profitable ventures through its 10.4% five-year return on equity
State Street is trading at $175.57 per share, or 11.9x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Garrett Motion (GTX)
Five-Year Return: +258%
A key player in the transition to cleaner vehicles, Garrett Motion (NYSE:GTX) designs and manufactures turbochargers, air compressors, and electric motor technologies for vehicle manufacturers and industrial applications.
Why Does GTX Stand Out?
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 44.4% annually
- Free cash flow margin expanded by 6.8 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are growing as management capitalizes on its market opportunities
At $26.59 per share, Garrett Motion trades at 8.8x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.