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.
The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. Taking that into account, here are three market-beating stocks that could turbocharge your returns.
Applied Materials (AMAT)
Five-Year Return: +188%
Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ:AMAT) is the largest provider of semiconductor wafer fabrication equipment.
Why Are We Fans of AMAT?
- Impressive 12.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Excellent operating margin of 29.3% highlights the efficiency of its business model, and its operating leverage amplified its profits over the last five years
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Applied Materials is trading at $185.38 per share, or 19.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
CACI (CACI)
Five-Year Return: +133%
Founded to commercialize SIMSCRIPT, CACI International (NYSE:CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts.
Why Does CACI Stand Out?
- Average backlog growth of 11.6% over the past two years shows it has a steady sales pipeline that will drive future orders
- Projected revenue growth of 8.4% for the next 12 months suggests its momentum from the last two years will persist
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
At $494.89 per share, CACI trades at 18.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Lantheus (LNTH)
Five-Year Return: +313%
Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Why Are We Positive On LNTH?
- Annual revenue growth of 35.6% over the last five years was superb and indicates its market share increased during this cycle
- Free cash flow margin increased by 22.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are growing as management capitalizes on its market opportunities
Lantheus’s stock price of $56.51 implies a valuation ratio of 8.5x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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 Comfort Systems (+782% 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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