3 Market-Beating Stocks to Keep an Eye On

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.

It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. On that note, here are three market-beating stocks that deserve a spot on your list.

Philip Morris (PM)

Five-Year Return: +116%

Founded in 1847, Philip Morris International (NYSE:PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.

Why Do We Love PM?

1. Average unit sales growth of 3% over the past two years reflects steady demand for its products
2. Unique products and pricing power lead to a best-in-class gross margin of 65.3%
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Philip Morris’s stock price of $168.55 implies a valuation ratio of 21.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

HCA Healthcare (HCA)

Five-Year Return: +199%

With roots dating back to 1968 and a network spanning 20 states, HCA Healthcare (NYSE:HCA) operates a network of 190 hospitals and 150+ outpatient facilities providing a full range of medical services across the US and England.

Why Are We Backing HCA?

1. Enormous revenue base of $72.7 billion gives it economies of scale and advantages over new entrants due to the industry’s regulatory complexity
2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Free cash flow margin expanded by 8.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

HCA Healthcare is trading at $390.31 per share, or 14.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

East West Bank (EWBC)

Five-Year Return: +159%

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 Are We Positive On EWBC?

1. Annual net interest income growth of 10.6% over the last five years beat the sector average and underscores the value of its loans
2. Share repurchases over the last five years enabled its annual earnings per share growth of 15.5% to outpace its revenue gains
3. Balance sheet strength has increased this cycle as its 12% annual tangible book value per share growth over the last five years was exceptional

At $99.15 per share, East West Bank trades at 1.6x forward P/B. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

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-micro-cap company Tecnoglass (+1,754% 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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