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 deserve a spot on your list.
Quanta (PWR)
Five-Year Return: +514%
A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Will PWR Beat the Market?
- Average backlog growth of 25.2% over the past two years shows it has a steady sales pipeline that will drive future orders
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 32.9% annually, topping its revenue gains
- Free cash flow margin increased by 7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Quanta is trading at $685.47 per share, or 36.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
AAON (AAON)
Five-Year Return: +84.9%
Backed by two million square feet of lab testing space, AAON (NASDAQ:AAON) makes heating, ventilation, and air conditioning equipment for different types of buildings.
Why Should AAON Be on Your Watchlist?
- Sales pipeline is in good shape as its backlog averaged 93.5% growth over the past two years
- Market share will likely rise over the next 12 months as its expected revenue growth of 27.2% is robust
- Industry-leading 17.4% return on capital demonstrates management’s skill in finding high-return investments
AAON’s stock price of $83.36 implies a valuation ratio of 30.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
ConocoPhillips (COP)
Five-Year Return: +78.9%
Operating the famous Prudhoe Bay field discovered in 1968 that transformed Alaska's economy, ConocoPhillips (NYSE:COP) explores for and produces crude oil, natural gas, and liquefied natural gas across North America, Europe, Asia, and Africa.
Why Do We Love COP?
- Annual revenue growth of 10.1% over the last ten years was superb and indicates its market share increased during this cycle
- Unparalleled revenue scale of $65.28 billion gives it advantageous pricing and terms with suppliers
- Robust free cash flow margin of 17.3% gives it many options for capital deployment
At $128.45 per share, ConocoPhillips trades at 12.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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.