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. Taking that into account, here are three market-beating stocks with room for further growth.

Wabtec (WAB)

Five-Year Return: +241%

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.

Why Will WAB Outperform?

1. 9.1% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
2. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
3. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

Wabtec’s stock price of $276.76 implies a valuation ratio of 25.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Medpace (MEDP)

Five-Year Return: +159%

Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ: MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.

Why Are We Positive on MEDP?

1. Average organic revenue growth of 16.9% over the past two years demonstrates its ability to expand independently without relying on acquisitions
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 30.2% exceeded its revenue gains over the last five years
3. Free cash flow margin expanded by 8.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Medpace is trading at $455.47 per share, or 26.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Hewlett Packard Enterprise (HPE)

Five-Year Return: +235%

Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE: HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.

Why Are We Bullish on HPE?

1. ARR trends over the past two years show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
2. Enormous revenue base of $38.79 billion provides significant distribution advantages
3. Exciting sales outlook for the upcoming 12 months calls for 25.2% growth, an acceleration from its two-year trend

At $48.42 per share, Hewlett Packard Enterprise trades at 12.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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.