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.
Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Keeping that in mind, here are three market-beating stocks with room for further growth.
Robinhood (HOOD)
Return Since IPO: +114%
With a mission to democratize finance, Robinhood (NASDAQ: HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Why Are We Backing HOOD?
- 198% annual increases in its average revenue per user over the last two years show its platform is resonating with power users
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 63.9% outpaced its revenue gains
- Free cash flow margin jumped by 102.3 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Robinhood is trading at $74.44 per share, or 22.2x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Acuity Brands (AYI)
Five-Year Return: +98%
One of the pioneers of smart lights, Acuity (NYSE: AYI) designs and manufactures light fixtures and building management systems used in various industries.
Why Could AYI Be a Winner?
- Superior product capabilities and pricing power result in a premier gross margin of 44.8%
- Share buybacks catapulted its annual earnings per share growth to 18.1%, which outperformed its revenue gains over the last five years
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Acuity Brands’s stock price of $267.68 implies a valuation ratio of 13.2x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
TTM Technologies (TTMI)
Five-Year Return: +578%
As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ: TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries.
Why Should TTMI Be on Your Watchlist?
- Annual revenue growth of 14.1% over the past two years was outstanding, reflecting market share gains this cycle
- Market share is on track to rise over the next 12 months as its 17.4% projected revenue growth implies demand will accelerate from its two-year trend
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 35.2% annually
At $97.80 per share, TTM Technologies trades at 29.7x forward P/E. 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 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.
