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3 Market-Beating Stocks on Our Watchlist

HOOD Cover Image

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.

The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. Taking that into account, here are three market-beating stocks that could turbocharge your returns.

Robinhood (HOOD)

Return Since IPO: +294%

With a mission to democratize finance, Robinhood (NASDAQ: HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.

Why Are We Bullish on HOOD?

  1. 47.7% annual increases in its average revenue per user over the last two years show its platform is resonating with power users
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 58.5% over the last three years outstripped its revenue performance
  3. Strong free cash flow margin of 49.6% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy

Robinhood is trading at $137.03 per share, or 37.3x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Cadence Design Systems (CDNS)

Five-Year Return: +183%

Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ: CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.

Why Could CDNS Be a Winner?

  1. Billings growth has averaged 21.8% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
  2. Superior software functionality and low servicing costs result in a best-in-class gross margin of 86.6%
  3. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs

Cadence Design Systems’s stock price of $336.94 implies a valuation ratio of 16x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.

AAR (AIR)

Five-Year Return: +147%

The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE: AIR) is a provider of aircraft maintenance services

Why Are We Positive On AIR?

  1. Market share has increased this cycle as its 16.8% annual revenue growth over the last two years was exceptional
  2. Projected revenue growth of 12% for the next 12 months suggests its momentum from the last two years will persist
  3. Earnings per share grew by 18.9% annually over the last five years, massively outpacing its peers

At $84.09 per share, AAR trades at 18.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

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 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

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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