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3 Market-Beating Stocks on Our Watchlist

ORLY Cover Image

Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns, and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.

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.

O'Reilly (ORLY)

Five-Year Return: +240%

Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ: ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.

Why Is ORLY a Good Business?

  1. Locations open for at least a year are seeing increased demand as same-store sales have averaged 3.5% growth over the past two years
  2. Unique assortment of products and pricing power are reflected in its best-in-class gross margin of 51.3%
  3. ORLY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

At $100.16 per share, O'Reilly trades at 30.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Goldman Sachs (GS)

Five-Year Return: +239%

Founded in 1869 as a small commercial paper business in New York City, Goldman Sachs (NYSE: GS) is a global financial institution that provides investment banking, securities, asset management, and consumer banking services to corporations, governments, and individuals.

Why Could GS Be a Winner?

  1. Solid 13.5% annual revenue growth over the last two years indicates its offering’s solve complex business issues
  2. Share buybacks catapulted its annual earnings per share growth to 53.7%, which outperformed its revenue gains over the last two years
  3. ROE of 12.9% shows management can invest its resources competently

Goldman Sachs’s stock price of $776.66 implies a valuation ratio of 14.4x 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.

Charles Schwab (SCHW)

Five-Year Return: +88.9%

Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE: SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.

Why Should SCHW Be on Your Watchlist?

  1. Market share has increased this cycle as its 17.8% annual revenue growth over the last five years was exceptional
  2. Earnings growth has topped the peer group average over the last five years as its EPS has compounded at 14.5% annually
  3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

Charles Schwab is trading at $91.12 per share, or 16.6x forward P/E. Is now the right 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

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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