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.
Sterling (STRL)
Five-Year Return: +1,531%
Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ: STRL) provides civil infrastructure construction.
Why Do We Love STRL?
- Solid 9.4% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Free cash flow margin increased by 8.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Improving returns on capital reflect management’s ability to monetize investments
Sterling’s stock price of $309.98 implies a valuation ratio of 26.4x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Quanta (PWR)
Five-Year Return: +518%
A construction engineering services company, Quanta (NYSE: PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Should You Buy PWR?
- Backlog has averaged 16.7% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 24.3% annually
At $427.49 per share, Quanta trades at 35.2x 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.
Planet Labs (PL)
Return Since IPO: +96.5%
Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE: PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.
Why Is PL a Top Pick?
- Market share has increased this cycle as its 23.1% annual revenue growth over the last five years was exceptional
- Free cash flow profile has moved into positive territory over the last five years, showing the company is at an important crossroads
- Historical investments are beginning to pay off as its returns on capital are growing
Planet Labs is trading at $19.45 per share, or 697.8x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum 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-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.
