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. Taking that into account, here are three market-beating stocks that deserve a spot on your list.
AppLovin (APP)
Five-Year Return: +540%
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ: APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
Why Will APP Beat the Market?
- Impressive 30.4% annual revenue growth over the last two years indicates it’s winning market share
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Robust free cash flow margin of 71.9% gives it many options for capital deployment
AppLovin’s stock price of $417.50 implies a valuation ratio of 15.8x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Valmont (VMI)
Five-Year Return: +104%
Credited with an invention in the 1950s that improved crop yields, Valmont (NYSE: VMI) provides engineered products and infrastructure services for the agricultural industry.
Why Could VMI Be a Winner?
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Share repurchases over the last two years enabled its annual earnings per share growth of 74.3% to outpace its revenue gains
- Free cash flow margin expanded by 8.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $480.97 per share, Valmont trades at 2.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Mueller Water Products (MWA)
Five-Year Return: +75.5%
As one of the oldest companies in the water infrastructure industry, Mueller (NYSE: MWA) is a provider of water infrastructure products and flow control systems for various sectors.
Why Is MWA a Good Business?
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Additional sales over the last two years increased its profitability as the 32.8% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 6.6 percentage points over the last five years, giving the company more chips to play with
Mueller Water Products is trading at $25.92 per share, or 16.7x 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
