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.
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 with room for further growth.
Cadre (CDRE)
Return Since IPO: +90.5%
Originally known as Safariland, Cadre (NYSE: CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Why Are We Fans of CDRE?
- Market share has increased this cycle as its 11.8% annual revenue growth over the last two years was exceptional
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 17.6%
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
At $29.12 per share, Cadre trades at 1.8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Hims & Hers Health (HIMS)
Five-Year Return: +155%
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE: HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
Why Is HIMS a Good Business?
- Average customer growth of 26.1% over the past two years demonstrates success in acquiring new clients that could increase their spending in the future
- Free cash flow margin expanded by 16.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Improving returns on capital suggest its past investments are beginning to deliver value
Hims & Hers Health’s stock price of $29.97 implies a valuation ratio of 2x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free.
East West Bank (EWBC)
Five-Year Return: +82.2%
As the largest independent bank in the U.S. focused on bridging financial services between America and Asia, East West Bancorp (NASDAQ: EWBC) operates a commercial bank that provides personal and business banking services with a unique focus on facilitating U.S.-Asia cross-border transactions.
Why Could EWBC Be a Winner?
- 13.9% annual net interest income growth over the last five years surpassed the sector average as its loans resonated with borrowers
- Share buybacks catapulted its annual earnings per share growth to 17.9%, which outperformed its revenue gains over the last five years
- Annual tangible book value per share growth of 12.9% over the last five years was superb and indicates its capital strength increased during this cycle
East West Bank is trading at $131.32 per share, or 1.9x forward P/B. Is now the right time to buy? Find out in our full 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
