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. Keeping that in mind, here are three market-beating stocks with room for further growth.
Urban Outfitters (URBN)
Five-Year Return: +354%
Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ: URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion.
Why Is URBN on Our Radar?
- Comparable store sales rose by 4.2% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Sales outlook for the upcoming 12 months calls for 8.1% growth, an acceleration from its six-year trend
- Earnings per share grew by 46.7% annually over the last five years, massively outpacing its peers
Urban Outfitters’s stock price of $72.67 implies a valuation ratio of 16.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
EXL (EXLS)
Five-Year Return: +233%
Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ: EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.
Why Do We Love EXLS?
- Market share has increased this cycle as its 13.8% annual revenue growth over the last five years was exceptional
- Share repurchases over the last five years enabled its annual earnings per share growth of 22.8% to outpace its revenue gains
- EXLS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $42.65 per share, EXL trades at 22x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
FirstSun Capital Bancorp (FSUN)
Return Since IPO: +64.6%
Tracing its roots back to 1892 when it first opened its doors in Kansas, FirstSun Capital Bancorp (NASDAQ: FSUN) operates Sunflower Bank, providing commercial and consumer banking services to businesses and individuals across the Southwest region.
Why Will FSUN Outperform?
- Market share has increased this cycle as its 20.5% annual net interest income growth over the last four years was exceptional
- Differentiated product suite leads to a Strong performance of its loan book results in a High-yielding loan book and low cost of funds are reflected in its stellar net interest margin of 4.2%
- Impressive 12.1% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
FirstSun Capital Bancorp is trading at $39.50 per share, or 1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - 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 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-small-cap company Comfort Systems (+782% 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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