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 that could turbocharge your returns.
Western Digital (WDC)
Five-Year Return: +625%
Founded in 1970 by a Motorola employee, Western Digital (NASDAQ: WDC) is a leading producer of hard disk drives, SSDs and flash memory.
Why Do We Like WDC?
- Projected revenue growth of 43.7% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Efficiency rose over the last five years as its Operating margin increased by 17.3 percentage points
- Free cash flow margin expanded by 17.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Western Digital is trading at $456.67 per share, or 31.8x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
FTAI Aviation (FTAI)
Five-Year Return: +600%
With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.
Why Should You Buy FTAI?
- Market share has increased this cycle as its 53.4% annual revenue growth over the last two years was exceptional
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 46.4% annually
- Negative free cash flow margin has improved over the last five years, showing the company is one step closer to financial self-sufficiency
FTAI Aviation’s stock price of $202.60 implies a valuation ratio of 23.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Magnolia Oil & Gas (MGY)
Five-Year Return: +106%
Operating over 600,000 net acres primarily in two distinct South Texas regions, Magnolia Oil & Gas (NYSE: MGY) drills and produces oil, natural gas, and natural gas liquids from South Texas formations.
Why Are We Positive on MGY?
- Annual revenue growth of 18.7% over the last five years was superb and indicates its market share increased during this cycle
- Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 84.6%
- Robust free cash flow margin of 39.1% gives it many options for capital deployment
At $26.89 per share, Magnolia Oil & Gas trades at 9.7x forward P/E. Is now the right time to buy? See for yourself in our comprehensive 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
