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.
Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. On that note, here are three market-beating stocks that deserve a spot on your list.
Vertiv (VRT)
Five-Year Return: +769%
Formerly part of Emerson Electric, Vertiv (NYSE: VRT) manufactures and services infrastructure technology products for data centers and communication networks.
Why Do We Love VRT?
- Average organic revenue growth of 21% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Free cash flow margin grew by 7.9 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are climbing as management makes more lucrative bets
Vertiv is trading at $162.05 per share, or 32.4x 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.
Nextracker (NXT)
Return Since IPO: +186%
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextracker (NASDAQ: NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Why Are We Bullish on NXT?
- Sales pipeline is in good shape as its backlog averaged 56.9% growth over the past two years
- Free cash flow margin expanded by 15.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Improving returns on capital reflect management’s ability to monetize investments
At $87.20 per share, Nextracker trades at 20.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Berkshire Hathaway (BRK.A)
Five-Year Return: +115%
Led by legendary investor Warren Buffett since 1965, transforming it from a struggling textile manufacturer into a corporate giant, Berkshire Hathaway (NYSE: BRK.A) is a diversified holding company that owns businesses across insurance, railroads, utilities, manufacturing, retail, and services sectors.
Why Should BRK.A Be on Your Watchlist?
- Earnings growth has comfortably beaten the peer group average over the last two years as its EPS has compounded at 18.9% annually
- Impressive 15.9% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
- ROE punches in at 13.2%, illustrating management’s expertise in identifying profitable investments
Berkshire Hathaway’s stock price of $755,320 implies a valuation ratio of 22.8x 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
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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-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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