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3 Market-Beating Stocks on Our Watchlist

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Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns, and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.

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.

Alphabet (GOOGL)

Five-Year Return: +142%

Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ: GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube.

Why Should You Buy GOOGL?

  1. Alphabet’s dominant Google Search sits on the pantheon of the best businesses ever. This is reflected in its robust long-term revenue growth and elite operating margin.
  2. The company’s profit margins have become even higher over time, speaking to its scale advantages and operating efficiency not only in its core Search business but also in Google Cloud Platform and YouTube.
  3. Revenue growth and increasing operating margins are the key ingredients for strong EPS growth. Google has these, and when also factoring in its share repurchases, you can see why EPS has exploded over the long term.

Alphabet’s stock price of $175.42 implies a valuation ratio of 19.5x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free.

Republic Services (RSG)

Five-Year Return: +201%

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

Why Does RSG Catch Our Eye?

  1. 9.3% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
  2. Highly efficient business model is illustrated by its impressive 18.6% operating margin, and its profits increased over the last five years as it scaled
  3. Strong free cash flow margin of 13.5% enables it to reinvest or return capital consistently

Republic Services is trading at $248.75 per share, or 35.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Merchants Bancorp (MBIN)

Five-Year Return: +170%

With a strategic focus on low-risk, government-backed lending programs, Merchants Bancorp (NASDAQCM:MBIN) is an Indiana-based bank holding company specializing in multi-family mortgage banking, mortgage warehousing, and traditional banking services.

Why Are We Bullish on MBIN?

  1. Impressive 19.1% annual net interest income growth over the last four years indicates it’s winning market share this cycle
  2. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 9.7% annually
  3. Impressive 23.5% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle

At $31.32 per share, Merchants Bancorp trades at 0.7x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 5 Growth Stocks for this month. 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 Kadant (+351% 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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