3 Market-Beating Stocks to Target This Week

The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital, and those that can maintain this trifecta year in and year out often become the legends of the investing world.

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 with room for further growth.

TJX (TJX)

Five-Year Return: +148%

Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE:TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.

Why Do We Love TJX?

1. Same-store sales growth averaged 4.1% over the past two years, showing it’s bringing new and repeat shoppers into its stores
2. Unparalleled revenue scale of $57.93 billion offsets its poor gross margin and gives it advantageous pricing and terms with suppliers
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are growing as it capitalizes on even better market opportunities

TJX is trading at $148 per share, or 30.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Verra Mobility (VRRM)

Five-Year Return: +92.1%

Aiming to wrap technology and data around a historically manual and paper-based industry, Verra Mobility (NYSE:VRRM) is a leading provider of smart mobility technology to address tolls and violations, title and registration services, as well as safety and traffic enforcement.

Why Do We Like VRRM?

1. Market share has increased this cycle as its 18.4% annual revenue growth over the last five years was exceptional
2. Superior product capabilities and pricing power lead to a best-in-class gross margin of 61.8%
3. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 20.4% annually

Verra Mobility’s stock price of $22.98 implies a valuation ratio of 17.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Skyward Specialty Insurance (SKWD)

Return Since IPO: +159%

Founded in 2006 to serve markets where standard insurance coverage falls short, Skyward Specialty Insurance (NASDAQ:SKWD) provides customized commercial property, casualty, and health insurance solutions for underserved or specialized market niches.

Why Will SKWD Outperform?

1. Market penetration was impressive this cycle as its net premiums earned expanded by 26.6% annually over the last two years
2. Annual book value per share growth of 29.3% over the last two years was superb and indicates its capital strength increased during this cycle
3. Book value per share outlook for the upcoming 12 months is outstanding and shows it’s on track to build significant equity value

At $49.40 per share, Skyward Specialty Insurance trades at 2x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 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 Kadant (+351% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.