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. On that note, here are three market-beating stocks that deserve a spot on your list.

EMCOR (EME)

Five-Year Return: +597%

Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services

Why Are We Bullish on EME?

1. Market share has increased this cycle as its 16.3% annual revenue growth over the last two years was exceptional
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 40.2% exceeded its revenue gains over the last two years
3. Returns on capital are growing as management capitalizes on its market opportunities

EMCOR’s stock price of $853.85 implies a valuation ratio of 28.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

HEICO (HEI)

Five-Year Return: +142%

Founded in 1957, HEICO (NYSE: HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.

Why Will HEI Outperform?

1. Market share has increased this cycle as its 18.3% annual revenue growth over the last two years was exceptional
2. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 32.7% annually
3. Robust free cash flow margin of 17.4% gives it many options for capital deployment

At $341.26 per share, HEICO trades at 52.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

PJT (PJT)

Five-Year Return: +114%

Spun off from Blackstone in 2015 and founded by former Morgan Stanley executive Paul J. Taubman, PJT Partners (NYSE: PJT) is an advisory-focused investment bank that provides strategic advice, restructuring services, and fundraising solutions to corporations, boards, and investment firms.

Why Should PJT Be on Your Watchlist?

1. Market share has increased this cycle as its 18.7% annual revenue growth over the last two years was exceptional
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 42% outpaced its revenue gains
3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

PJT is trading at $152.41 per share, or 20x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.