The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital, and those that can maintain this trifecta year in and year out often become the legends of the investing world.
The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. Keeping that in mind, here are three market-beating stocks with room for further growth.
Encompass Health (EHC)
Five-year return: +86.4%
With a network of 161 specialized facilities across 37 states and Puerto Rico, Encompass Health (NYSE: EHC) operates inpatient rehabilitation hospitals that help patients recover from strokes, hip fractures, and other debilitating conditions.
Why Do We Like EHC?
- Free cash flow margin jumped by 4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- ROIC punches in at 16.4%, illustrating management’s expertise in identifying profitable investments, and its returns are climbing as it finds even more attractive growth opportunities
- Improving returns on capital reflect management’s ability to monetize investments
At $118.51 per share, Encompass Health trades at 18.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Skyward Specialty Insurance (SKWD)
Return since IPO: +203%
Founded in 2006 to serve markets where standard insurance coverage falls short, Skyward Specialty Insurance (NASDAQ: SKWD) provides customized commercial property, casualty, and health insurance solutions for underserved or specialized market niches.
Why Does SKWD Stand Out?
- Strong 29.5% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Notable projected revenue growth of 17.1% for the next 12 months hints at market share gains
- Annual book value per share growth of 25.8% over the past two years was outstanding, reflecting strong capital accumulation this cycle
Skyward Specialty Insurance is trading at $57.91 per share, or 2x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Core Natural Resources (CNR)
Five-year return: +224%
Tracing its origins to 1864 and operating some mines southwest of Pittsburgh, Core Natural Resources (NYSE: CNR) mines and exports metallurgical coal used in steelmaking and thermal coal for power generation.
Why Are We Positive on CNR?
- Impressive 15.6% annual revenue growth over the last ten years indicates it’s winning market share this cycle
- $4.27 billion in revenue gives it scale, which leads to bargaining power with suppliers and retailers
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Core Natural Resources’s stock price of $89.00 implies a valuation ratio of 1x forward price-to-sales. Is now a good time to buy? Find out in our full 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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
