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. Taking that into account, here are three market-beating stocks with room for further growth.
O'Reilly (ORLY)
Five-Year Return: +236%
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 Will ORLY Outperform?
- Comparable store sales rose by 3.5% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Healthy operating margin of 19.5% shows it’s a well-run company with efficient processes
- Industry-leading 42.3% return on capital demonstrates management’s skill in finding high-return investments
O'Reilly is trading at $100.47 per share, or 31x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
OSI Systems (OSIS)
Five-Year Return: +181%
With security scanners deployed at airports and borders worldwide and patient monitors used in hospitals across the globe, OSI Systems (NASDAQ: OSIS) designs and manufactures specialized electronic systems for security screening, patient monitoring, and optoelectronic applications.
Why Are We Backing OSIS?
- Impressive 16.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 23.4% annually, topping its revenue gains
- Free cash flow margin jumped by 2.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $251.25 per share, OSI Systems trades at 23.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Tradeweb Markets (TW)
Five-Year Return: +84.8%
Founded in 1996 as one of the pioneers in electronic bond trading, Tradeweb Markets (NASDAQ: TW) builds and operates electronic marketplaces that connect financial institutions for trading across rates, credit, equities, and money markets.
Why Should You Buy TW?
- Annual revenue growth of 25.8% over the last two years was superb and indicates its market share increased during this cycle
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 25.7% annually
Tradeweb Markets’s stock price of $106.46 implies a valuation ratio of 28.8x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 9 Market-Beating Stocks. 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.
