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3 Market-Beating Stocks Worth Investigating

INTU 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.

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 with room for further growth.

Intuit (INTU)

Five-Year Return: +131%

Created in 1983 when founder Scott Cook watched his wife struggle to reconcile the family's checkbook, Intuit provides tax and accounting software for small and medium-sized businesses.

Why Are We Fans of INTU?

  1. Winning new contracts that can potentially increase in value as its billings growth has averaged 15% over the last year
  2. Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
  3. Robust free cash flow margin of 32.8% gives it many options for capital deployment

At $568.28 per share, Intuit trades at 8.1x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

Qualcomm (QCOM)

Five-Year Return: +83.7%

Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ: QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.

Why Do We Like QCOM?

  1. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 24.6%
  2. Strong free cash flow margin of 29.4% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
  3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Qualcomm’s stock price of $134.74 implies a valuation ratio of 11.2x forward price-to-earnings. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Sprouts (SFM)

Five-Year Return: +700%

Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ: SFM) is a grocery store chain emphasizing natural and organic products.

Why Do We Love SFM?

  1. Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
  2. Locations open for at least a year are seeing increased demand as same-store sales have averaged 5.5% growth over the past two years
  3. Free cash flow margin grew by 1.9 percentage points over the last year, giving the company more chips to play with

Sprouts is trading at $153.86 per share, or 34.2x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. 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 United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.

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