Stocks that outperform the market usually share key traits such as rising sales, expanding margins, and increasing returns on capital. The select few that can do all three for many years are often the ones that make you life-changing money.
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 deserve a spot on your list.
Nvidia (NVDA)
Five-Year Return: +1,228%
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 Should You Buy NVDA?
- Impressive 125% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share buybacks catapulted its annual earnings per share growth to 79.5%, which outperformed its revenue gains over the last five years
- NVDA is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute
At $189.22 per share, Nvidia trades at 32.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Quanta (PWR)
Five-Year Return: +619%
A construction engineering services company, Quanta (NYSE: PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Are We Bullish on PWR?
- Demand is greater than supply as the company’s 20.3% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Forecasted revenue growth of 12.7% for the next 12 months indicates its momentum over the last two years is sustainable
- Earnings per share grew by 25.1% annually over the last two years and trumped its peers
Quanta’s stock price of $434.32 implies a valuation ratio of 35.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Enova (ENVA)
Five-Year Return: +470%
Pioneering online lending since 2004 with a massive database of over 65 terabytes of customer behavior data, Enova International (NYSE: ENVA) provides online financial services including installment loans and lines of credit to non-prime consumers and small businesses in the United States and Brazil.
Why Is ENVA a Good Business?
- Market share has increased this cycle as its 23.4% annual revenue growth over the last two years was exceptional
- Share repurchases over the last two years enabled its annual earnings per share growth of 26.8% to outpace its revenue gains
- Annual book value per share growth of 25.4% over the past five years was outstanding, reflecting strong capital accumulation this cycle
Enova is trading at $105.67 per share, or 8.1x 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.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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 ServiceNow (+178% 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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