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3 Market-Beating Stocks with Promising Prospects

HOOD 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. Taking that into account, here are three market-beating stocks that deserve a spot on your list.

Robinhood (HOOD)

Return Since IPO: +107%

With a mission to democratize finance, Robinhood (NASDAQ: HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.

Why Do We Love HOOD?

  1. Customers are spending more money on its platform as its average revenue per user has increased by 43.1% annually over the last two years
  2. Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 64.6% outpaced its revenue gains
  3. Free cash flow margin expanded by 1,103.9 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends

Robinhood’s stock price of $71.91 implies a valuation ratio of 32.6x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

Cadre (CDRE)

Return Since IPO: +120%

Originally known as Safariland, Cadre (NYSE: CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.

Why Could CDRE Be a Winner?

  1. Offerings and unique value proposition resonate with customers, as seen in its above-market 9.7% annual sales growth over the last two years
  2. Exciting sales outlook for the upcoming 12 months calls for 19.3% growth, an acceleration from its two-year trend
  3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 19.7% annually

Cadre is trading at $33.59 per share, or 21.1x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Cencora (COR)

Five-Year Return: +193%

Formerly known as AmerisourceBergen until its 2023 rebranding, Cencora (NYSE: COR) is a global pharmaceutical distribution company that connects manufacturers with healthcare providers while offering logistics, data analytics, and consulting services.

Why Is COR a Good Business?

  1. Unparalleled scale of $310.2 billion in revenue enables it to spread administrative costs across a larger membership base
  2. Share buybacks catapulted its annual earnings per share growth to 14.5%, which outperformed its revenue gains over the last five years
  3. ROIC punches in at 57.3%, illustrating management’s expertise in identifying profitable investments

At $291.55 per share, Cencora trades at 18x forward P/E. Is now the time to initiate a position? 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 9 Market-Beating Stocks. 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.

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