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.
Guidewire Software (GWRE)
Five-Year Return: +140%
With its systems powering the operations of hundreds of insurance brands across 42 countries, Guidewire Software (NYSE:GWRE) provides a technology platform that helps property and casualty insurance companies manage their core operations, digital engagement, and analytics.
Why Could GWRE Be a Winner?
- Billings have averaged 21.2% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- GWRE is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $247 per share, Guidewire Software trades at 15x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Axon (AXON)
Five-Year Return: +600%
Providing body cameras and tasers for first responders, AXON (NASDAQ:AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Will AXON Beat the Market?
- Unit sales averaged 28.8% growth over the past two years and imply healthy demand for its products
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 46.5% annually, topping its revenue gains
- Improving returns on capital suggest its past investments are beginning to deliver value
Axon’s stock price of $710.23 implies a valuation ratio of 106.7x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Globalstar (GSAT)
Five-Year Return: +841%
Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ:GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach.
Why Are We Fans of GSAT?
- Annual revenue growth of 16.3% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 55.5% annually, topping its revenue gains
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
Globalstar is trading at $44.95 per share, or 38.6x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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