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.
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 that deserve a spot on your list.
CAVA (CAVA)
Return Since IPO: +78.2%
Starting from a single Washington, D.C. location, CAVA (NYSE: CAVA) operates a fast-casual restaurant chain offering customizable Mediterranean-inspired dishes.
Why Does CAVA Catch Our Eye?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Customers are lining up to eat at its restaurants as the company’s same-store sales growth averaged 13.8% over the past two years
- Free cash flow margin expanded by 7.9 percentage points over the last year, providing additional flexibility for investments and share buybacks/dividends
CAVA is trading at $78 per share, or 127.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Armstrong World (AWI)
Five-Year Return: +109%
Started as a two-man shop dating back to the 1860s, Armstrong (NYSE: AWI) provides ceiling and wall products to commercial and residential spaces.
Why Are We Positive On AWI?
- 9.2% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Highly efficient business model is illustrated by its impressive 24.6% operating margin
- Strong free cash flow margin of 19.6% enables it to reinvest or return capital consistently
At $163.12 per share, Armstrong World trades at 22.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Waste Connections (WCN)
Five-Year Return: +98.2%
Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE: WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services.
Why Should WCN Be on Your Watchlist?
- Annual revenue growth of 10.5% over the past five years was outstanding, reflecting market share gains this cycle
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Robust free cash flow margin of 15.2% gives it many options for capital deployment
Waste Connections’s stock price of $185.90 implies a valuation ratio of 34.4x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
