3 Market-Beating Stocks for Long-Term Investors

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.

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 with room for further growth.

MACOM (MTSI)

Five-Year Return: +272%

Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.

Why Does MTSI Stand Out?

1. Annual revenue growth of 27.8% over the past two years was outstanding, reflecting market share gains this cycle
2. Offerings are mission-critical for businesses and lead to a top-tier gross margin of 54.5%
3. Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 22.2% annually

MACOM’s stock price of $242.50 implies a valuation ratio of 52.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Powell (POWL)

Five-Year Return: +1,704%

Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE:POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.

Why Should You Buy POWL?

1. Demand is greater than supply as the company’s 15.4% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 58.2% over the last two years outstripped its revenue performance
3. Free cash flow margin increased by 22 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Powell is trading at $538.50 per share, or 31.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

McKesson (MCK)

Five-Year Return: +428%

With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE:MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.

Why Will MCK Outperform?

1. 14.9% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
2. Dominant market position is represented by its $398 billion in revenue, which creates significant barriers to entry in this highly regulated industry
3. Share repurchases over the last five years enabled its annual earnings per share growth of 18% to outpace its revenue gains

At $939.00 per share, McKesson trades at 21.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

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 6 Stocks for this week. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.