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. Keeping that in mind, here are three market-beating stocks with room for further growth.

Duolingo (DUOL)

Return Since IPO: +265%

Founded by a Carnegie Mellon computer science professor and his Ph.D. student, Duolingo (NASDAQ: DUOL) is a mobile app helping people learn new languages.

Why Will DUOL Beat the Market?

1. Monthly Active Users are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 178% over the last three years outstripped its revenue performance
3. Strong free cash flow margin of 34.4% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute

Duolingo’s stock price of $507.77 implies a valuation ratio of 83x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.

Dick's (DKS)

Five-Year Return: +394%

Started as a hunting supply store, Dick’s Sporting Goods (NYSE: DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.

Why Does DKS Stand Out?

1. Same-store sales growth averaged 4% over the past two years, showing it’s bringing new and repeat shoppers into its stores
2. Earnings per share have comfortably outperformed the peer group average over the last six years, increasing by 27.4% annually
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

At $180.26 per share, Dick's trades at 12.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Axon (AXON)

Five-Year Return: +714%

Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.

Why Is AXON a Top Pick?

1. Products are reaching more customers as its unit sales averaged 32% growth over the past two years
2. Free cash flow margin increased by 20.3 percentage points over the last five years, giving the company more capital to invest or return to shareholders
3. Historical investments are beginning to pay off as its returns on capital are growing

Axon is trading at $730.49 per share, or 122.8x forward P/E. Is now a good 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 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.