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.

It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. On that note, here are three market-beating stocks that could turbocharge your returns.

e.l.f. Beauty (ELF)

Five-Year Return: +598%

Short for "eyes, lips, face", e.l.f. Beauty (NYSE: ELF) is a developer of high-quality beauty products at accessible price points.

Why Does ELF Stand Out?

1. Impressive 50.8% annual revenue growth over the last three years indicates it's winning market share
2. Unique products and pricing power result in a best-in-class gross margin of 70.8%
3. Earnings growth has massively outpaced its peers over the last three years as its EPS has compounded at 52.9% annually

e.l.f. Beauty is trading at $64.40 per share, or 15.6x forward price-to-earnings. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Republic Services (RSG)

Five-Year Return: +202%

Processing several million tons of recyclables annually, Republic (NYSE: RSG) provides waste management services for residences, companies, and municipalities.

Why Do We Watch RSG?

1. Solid 9.3% annual revenue growth over the last five years indicates its offering’s solve complex business issues
2. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 18.4%, and it turbocharged its profits by achieving some fixed cost leverage
3. Strong free cash flow margin of 13.2% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business

Republic Services’s stock price of $230.21 implies a valuation ratio of 33.7x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.

Magnite (MGNI)

Five-Year Return: +150%

Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ: MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.

Why Are We Backing MGNI?

1. Annual revenue growth of 33.7% over the past five years was outstanding, reflecting market share gains this cycle
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 77.3% over the last five years outstripped its revenue performance
3. Robust free cash flow margin of 24.8% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety

At $12.24 per share, Magnite trades at 12.9x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.

Put yourself in the driver’s seat by checking out 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.