Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns, and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.
The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. Taking that into account, here are three market-beating stocks that deserve a spot on your list.
Arlo Technologies (ARLO)
Five-Year Return: +193%
Originally spun off from networking equipment maker Netgear in 2018, Arlo Technologies (NYSE: ARLO) provides cloud-based smart security devices and subscription services that help consumers and businesses monitor and protect their homes, properties, and loved ones.
Why Could ARLO Be a Winner?
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 434% annually, topping its revenue gains
- Free cash flow margin jumped by 17.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Arlo Technologies is trading at $17.20 per share, or 25.5x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
RB Global (RBA)
Five-Year Return: +90%
Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE: RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.
Why Will RBA Outperform?
- Annual revenue growth of 33.6% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings per share grew by 20.6% annually over the last five years, massively outpacing its peers
- Robust free cash flow margin of 15.2% gives it many options for capital deployment
RB Global’s stock price of $117.60 implies a valuation ratio of 28.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
NMI Holdings (NMIH)
Five-Year Return: +127%
Founded in the aftermath of the 2008 housing crisis to bring new capacity to the mortgage insurance market, NMI Holdings (NASDAQ: NMIH) provides mortgage insurance that protects lenders against losses when homebuyers default on their mortgage loans.
Why Are We Bullish on NMIH?
- 9.8% annual net premiums earned growth over the last two years surpassed the sector average as its products resonated with customers
- Underwriting operating profits and efficiency rose over the last four years as it benefited from some fixed cost leverage
- Impressive 16% annual book value per share growth over the last five years indicates it’s building equity value this cycle
At $39.01 per share, NMI Holdings trades at 1.2x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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-small-cap company Exlservice (+354% 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
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