3 Market-Beating Stocks with Exciting Potential

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.

The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. Keeping that in mind, here are three market-beating stocks that deserve a spot on your list.

Howmet (HWM)

Five-Year Return: +946%

Inventing the first forged aluminum truck wheel, Howmet (NYSE:HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.

Why Will HWM Beat the Market?

1. Annual revenue growth of 11.6% over the past two years was outstanding, reflecting market share gains this cycle
2. Performance over the past two 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 11.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Howmet is trading at $190.95 per share, or 48.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Granite Construction (GVA)

Five-Year Return: +458%

Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE:GVA) is a provider of infrastructure solutions for roads, bridges, and other projects.

Why Could GVA Be a Winner?

1. Market share has increased this cycle as its 11.9% annual revenue growth over the last two years was exceptional
2. Additional sales over the last two years increased its profitability as the 42% annual growth in its earnings per share outpaced its revenue
3. Historical investments are beginning to pay off as its returns on capital are growing

At $107.13 per share, Granite Construction trades at 17.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

Leidos (LDOS)

Five-Year Return: +113%

Formed through the split of IT services company SAIC, Leidos (NYSE:LDOS) offers technology and engineering solutions such as military training systems for the defense, civil, and health markets.

Why Do We Like LDOS?

1. Backlog has averaged 15.7% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
2. Operating margin improvement of 3.4 percentage points over the last five years demonstrates its ability to scale efficiently
3. Share buybacks catapulted its annual earnings per share growth to 31%, which outperformed its revenue gains over the last two years

Leidos’s stock price of $188.52 implies a valuation ratio of 16.4x forward P/E. Is now a good 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 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-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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