3 Market-Beating Stocks on Our Buy List

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. Taking that into account, here are three market-beating stocks that could turbocharge your returns.

Nvidia (NVDA)

Five-Year Return: +1,192%

Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.

Why Are We Bullish on NVDA?

1. Annual revenue growth of 88.3% over the past two years was outstanding, reflecting market share gains this cycle
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 80.5% exceeded its revenue gains over the last five years
3. Robust free cash flow margin of 45.5% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business

Nvidia’s stock price of $179.05 implies a valuation ratio of 22.2x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Core & Main (CNM)

Return Since IPO: +127%

Formerly a division of industrial distributor HD Supply, Core & Main (NYSE:CNM) is a provider of water, wastewater, and fire protection products and services.

Why Will CNM Outperform?

1. Annual revenue growth of 17% over the past five 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 increased by 8 percentage points over the last five years, giving the company more capital to invest or return to shareholders

At $53.72 per share, Core & Main trades at 22x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Federal Signal (FSS)

Five-Year Return: +205%

Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE:FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies.

Why Do We Love FSS?

1. Annual revenue growth of 14% over the past five years was outstanding, reflecting market share gains this cycle
2. Additional sales over the last two years increased its profitability as the 28% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin expanded by 5.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Federal Signal is trading at $115.42 per share, or 25.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as ServiceNow (+163% between June 2020 and June 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.