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.
Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. On that note, here are three market-beating stocks with room for further growth.
Broadcom (AVGO)
Five-Year Return: +701%
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 Do We Love AVGO?
- Annual revenue growth of 27.6% over the last two years was superb and indicates its market share increased during this cycle
- Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 75.8%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Broadcom’s stock price of $251.15 implies a valuation ratio of 34.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Impinj (PI)
Five-Year Return: +270%
Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ: PI) is a maker of radio-frequency identification (RFID) hardware and software.
Why Does PI Catch Our Eye?
- Annual revenue growth of 11.9% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 49.5% over the last five years outstripped its revenue performance
- Free cash flow margin increased by 23.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Impinj is trading at $104.11 per share, or 65x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stock Yards Bank (SYBT)
Five-Year Return: +93.6%
Founded in 1904 in Louisville and named after the city's historic livestock market district, Stock Yards Bancorp (NASDAQ: SYBT) operates a regional bank providing commercial banking, wealth management, and trust services across Kentucky, Indiana, and Ohio.
Why Is SYBT on Our Radar?
- Annual net interest income growth of 17.3% over the past four years was outstanding, reflecting market share gains this cycle
- Additional sales over the last two years increased its profitability as the 4.5% annual growth in its earnings per share outpaced its revenue
- Industry-leading 13.2% return on equity demonstrates management’s skill in finding high-return investments
At $74.04 per share, Stock Yards Bank trades at 2.1x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
