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3 Market-Beating Stocks to Target This Week

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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.

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 that could turbocharge your returns.

ServiceNow (NOW)

Five-Year Return: +107%

Founded by Fred Luddy, who coded the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE: NOW) is a software provider helping companies automate workflows across IT, HR, and customer service.

Why Are We Backing NOW?

  1. Demand is healthy as its current remaining performance obligations (cRPO) have averaged 22.9% growth over the last year, showing it’s securing new contracts for services yet to be fulfilled
  2. Excellent operating margin of 13.3% highlights the efficiency of its business model, and its operating leverage amplified its profits over the last year
  3. Robust free cash flow margin of 31.9% gives it many options for capital deployment

ServiceNow is trading at $873.99 per share, or 12.7x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

CSW (CSWI)

Five-Year Return: +308%

With over two centuries of combined operations manufacturing and supplying, CSW (NASDAQ: CSWI) offers special chemicals, coatings, sealants, and lubricants for various industries.

Why Will CSWI Beat the Market?

  1. Annual revenue growth of 19.6% over the last five years was superb and indicates its market share increased during this cycle
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 25.9% over the last five years outstripped its revenue performance
  3. CSWI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy

At $305.10 per share, CSW trades at 30.5x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Primerica (PRI)

Five-Year Return: +91.1%

With a sales force of over 140,000 licensed representatives operating on an independent contractor model, Primerica (NYSE: PRI) provides term life insurance, investment products, and other financial services to middle-income households in the United States and Canada.

Why Does PRI Catch Our Eye?

  1. Pre-tax profit margin expanded by 5.9 percentage points over the last four years as it scaled and became more efficient
  2. Share repurchases have increased shareholder returns as its annual earnings per share growth of 18.8% exceeded its revenue gains over the last five years
  3. ROE punches in at 26.7%, illustrating management’s expertise in identifying profitable investments

Primerica’s stock price of $257.87 implies a valuation ratio of 3.5x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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