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. On that note, here are three market-beating stocks that deserve a spot on your list.
Booking (BKNG)
Five-Year Return: +198%
Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.
Why Are We Positive On BKNG?
- Room Nights Booked have increased by an average of 9.5% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Strong free cash flow margin of 35.3% enables it to reinvest or return capital consistently
At $5,390 per share, Booking trades at 17.9x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Light & Wonder (LNW)
Five-Year Return: +318%
With names as crazy as Ultimate Fire Link Power 4 for its products, Light & Wonder (NASDAQ: LNW) is a gaming company supplying the casino industry with slot machines, table games, and digital games.
Why Do We Like LNW?
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 21.4%
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Rising returns on capital show the company is starting to reap the benefits of its past investments
Light & Wonder’s stock price of $86.23 implies a valuation ratio of 12.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Super Micro (SMCI)
Five-Year Return: +1,625%
Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ: SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications.
Why Will SMCI Beat the Market?
- Annual revenue growth of 75.6% over the last two years was superb and indicates its market share increased during this cycle
- Massive revenue base of $21.97 billion makes it a well-known name that influences purchasing decisions
- Free cash flow profile has moved into positive territory over the last five years, indicating the company has achieved financial self-sustainability
Super Micro is trading at $44.88 per share, or 16.3x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 Kadant (+351% 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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