
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.
The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. On that note, here are three market-beating stocks that could turbocharge your returns.
Reddit (RDDT)
Return Since IPO: +208%
Founded in 2005 by two University of Virginia roommates, Reddit (NYSE: RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.
What Makes RDDT Stand Out?
- Has the opportunity to boost monetization through new features and premium offerings as its domestic daily active visitors have grown by 13.2% annually over the last two years
- Platform’s growing usage and its ability to increase user spending by 47.1% annually showcases its high switching costs
- Robust free cash flow margin of 31.8% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
Reddit is trading at $155.24 per share, or 15.2x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Federated Hermes (FHI)
Five-Year Return: +91.4%
With roots dating back to 1955 and a pioneering role in money market funds, Federated Hermes (NYSE: FHI) is an investment management firm that offers a wide range of funds and strategies for institutional and individual investors.
Why Are We Bullish on FHI?
- Products and services resonate with customers, evidenced by its respectable 10.2% annualized sales growth over the last two years
- Performance over the past two years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $61.00 per share, Federated Hermes trades at 10.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Aramark (ARMK)
Five-Year Return: +70.6%
From serving hot dogs at major league stadiums to managing college dining halls that feed thousands daily, Aramark (NYSE: ARMK) provides food services and facilities management to schools, healthcare facilities, businesses, sports venues, and correctional institutions across 16 countries.
Why Should You Buy ARMK?
- Annual revenue growth of 12% over the past five years was outstanding, reflecting market share gains this cycle
- Enormous revenue base of $19.85 billion provides significant distribution advantages
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 34.5% over the last five years outstripped its revenue performance
Aramark’s stock price of $56.52 implies a valuation ratio of 21.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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.