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: +160%
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?
- Billings growth has averaged 15.8% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Strong free cash flow margin of 33.6% enables it to reinvest or return capital consistently
Intuit’s stock price of $747 implies a valuation ratio of 10.3x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
MercadoLibre (MELI)
Five-Year Return: +198%
Originally started as an online auction platform, MercadoLibre (NASDAQ: MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
Why Are We Bullish on MELI?
- Has the opportunity to boost monetization through new features and premium offerings as its unique active buyers have grown by 19.7% annually over the last two years
- Switching costs of its platform were on full display over the last two years as it not only grew engagement but also increased the average revenue per user by 16.9% annually
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
MercadoLibre is trading at $2,563 per share, or 29.8x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Cal-Maine (CALM)
Five-Year Return: +117%
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ: CALM) produces, packages, and distributes eggs.
Why Are We Positive On CALM?
- Market share has increased over the last three years as its 35.3% annual revenue growth was exceptional
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 280% over the last three years outstripped its revenue performance
- Robust free cash flow margin of 17.9% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $95.90 per share, Cal-Maine trades at 9.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
