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3 Market-Beating Stocks to Keep an Eye On

TSCO 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 could turbocharge your returns.

Tractor Supply (TSCO)

Five-Year Return: +101%

Started as a mail-order tractor parts business, Tractor Supply (NASDAQ: TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer.

Why Is TSCO on Our Radar?

  1. Fast expansion of new stores indicates an aggressive approach to attacking untapped market opportunities
  2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable six-year growth trajectory
  3. ROIC punches in at 33.5%, illustrating management’s expertise in identifying profitable investments

At $59.98 per share, Tractor Supply trades at 27x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

RBC Bearings (RBC)

Five-Year Return: +186%

With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE: RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.

Why Do We Watch RBC?

  1. Impressive 18.9% annual revenue growth over the last five years indicates it’s winning market share this cycle
  2. Exciting sales outlook for the upcoming 12 months calls for 14.7% growth, an acceleration from its two-year trend
  3. Highly efficient business model is illustrated by its impressive 20.2% operating margin, and its rise over the last five years was fueled by some leverage on its fixed costs

RBC Bearings is trading at $398.15 per share, or 33.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Distribution Solutions (DSGR)

Return Since IPO: +70.6%

Founded in 1952, Distribution Solutions (NASDAQ: DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.

Why Does DSGR Stand Out?

  1. Impressive 17.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Sound unit economics and 33.7% gross margin allow for higher marketing and R&D budgets versus competitors
  3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 22.6% annually

Distribution Solutions’s stock price of $31.91 implies a valuation ratio of 21.2x forward P/E. Is now a good time to buy? See for yourself 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-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

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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