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.
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.
Sterling (STRL)
Five-Year Return: +1,907%
Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ: STRL) provides civil infrastructure construction.
Why Should You Buy STRL?
- Market share has increased this cycle as its 11.9% annual revenue growth over the last five years was exceptional
- Free cash flow margin grew by 13.9 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are growing as management capitalizes on its market opportunities
At $184.40 per share, Sterling trades at 23.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Limbach (LMB)
Five-Year Return: +4,482%
Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.
Why Does LMB Catch Our Eye?
- Efficiency rose over the last five years as its Operating margin increased by 5.3 percentage points
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 53.3% annually, topping its revenue gains
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are climbing as it finds even more attractive growth opportunities
Limbach’s stock price of $126.01 implies a valuation ratio of 30.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Amphenol (APH)
Five-Year Return: +268%
With over 90 years of connecting the world's technologies, Amphenol (NYSE: APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.
Why Will APH Beat the Market?
- Annual revenue growth of 15.2% over the last two years was superb and indicates its market share increased during this cycle
- Enormous revenue base of $16.78 billion provides significant distribution advantages
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 19% annually
Amphenol is trading at $86.45 per share, or 35.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
