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.
RBC Bearings (RBC)
Five-Year Return: +128%
With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE:RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.
Why Will RBC Outperform?
- Annual revenue growth of 26.3% over the past five years was outstanding, reflecting market share gains this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 21.9% outpaced its revenue gains
- Strong free cash flow margin of 16% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
RBC Bearings is trading at $491.16 per share, or 32.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Jabil (JBL)
Five-Year Return: +372%
With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE:JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.
Why Will JBL Beat the Market?
- Annual revenue growth of 11.6% over the last two years was superb and indicates its market share increased during this cycle
- Enormous revenue base of $35.95 billion provides significant distribution advantages
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 24.4% exceeded its revenue gains over the last two years
At $299.23 per share, Jabil trades at 16.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
RTX (RTX)
Five-Year Return: +106%
Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a variety of products and services to the aerospace and defense industries.
Why Are We Positive on RTX?
- Core business can prosper without any help from acquisitions as its organic revenue growth averaged 10.5% over the past two years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.3% exceeded its revenue gains over the last five years
- Free cash flow margin grew by 5.2 percentage points over the last five years, giving the company more chips to play with
RTX’s stock price of $185.50 implies a valuation ratio of 24.4x forward P/E. Is now the time to initiate a position? 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.