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 that deserve a spot on your list.
Dycom (DY)
Five-Year Return: +332%
Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE: DY) builds and maintains telecommunications infrastructure.
Why Do We Like DY?
- Market share has increased this cycle as its 11.1% annual revenue growth over the last two years was exceptional
- Operating margin improvement of 5.1 percentage points over the last five years demonstrates its ability to scale efficiently
- Share repurchases over the last two years enabled its annual earnings per share growth of 18% to outpace its revenue gains
At $289.68 per share, Dycom trades at 27.4x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Lantheus (LNTH)
Five-Year Return: +299%
Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Why Could LNTH Be a Winner?
- Annual revenue growth of 35.6% over the past five years was outstanding, reflecting market share gains this cycle
- Free cash flow margin increased by 22.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are climbing as management makes more lucrative bets
Lantheus’s stock price of $52.70 implies a valuation ratio of 10.5x 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.
Tenet Healthcare (THC)
Five-Year Return: +599%
With a network spanning nine states and serving primarily urban and suburban communities, Tenet Healthcare (NYSE: THC) operates a nationwide network of hospitals, ambulatory surgery centers, and outpatient facilities providing acute care and specialty healthcare services.
Why Are We Fans of THC?
- Share repurchases over the last five years enabled its annual earnings per share growth of 29.1% to outpace its revenue gains
- ROIC punches in at 21.3%, illustrating management’s expertise in identifying profitable investments, and its rising returns show it’s making even more lucrative bets
- Returns on capital are climbing as management makes more lucrative bets
Tenet Healthcare is trading at $194.85 per share, or 12.5x 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 .
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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-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
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