Stocks that outperform the market usually share key traits such as rising sales, expanding margins, and increasing returns on capital. The select few that can do all three for many years are often the ones that make you life-changing money.

It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. On that note, here are three market-beating stocks with room for further growth.

Parsons (PSN)

Five-Year Return: +114%

Delivering aerospace technology during the Cold War-era, Parsons (NYSE: PSN) offers engineering, construction, and cybersecurity solutions for the infrastructure and defense sectors.

Why Are We Positive On PSN?

1. Annual revenue growth of 23.8% over the past two years was outstanding, reflecting market share gains this cycle
2. Share buybacks catapulted its annual earnings per share growth to 35.3%, which outperformed its revenue gains over the last two years
3. Rising returns on capital show the company is starting to reap the benefits of its past investments

Parsons’s stock price of $74.43 implies a valuation ratio of 19.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Lennox (LII)

Five-Year Return: +141%

Based in Texas and founded over a century ago, Lennox (NYSE: LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.

Why Are We Fans of LII?

1. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
2. Earnings per share have massively outperformed its peers over the last two years, increasing by 24.3% annually
3. Industry-leading 50.4% return on capital demonstrates management’s skill in finding high-return investments

Lennox is trading at $597.16 per share, or 25.2x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

FB Financial (FBK)

Five-Year Return: +100%

Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE: FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.

Why Does FBK Stand Out?

1. Annual net interest income growth of 14.4% over the last five years was superb and indicates its market share increased during this cycle
2. Demand for the next 12 months is expected to accelerate above its five-year trend as Wall Street forecasts robust net interest income growth of 32.6%
3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 6% annually

At $47.21 per share, FB Financial trades at 1.3x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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-small-cap company Exlservice (+354% 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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