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.
O'Reilly (ORLY)
Five-Year Return: +213%
Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ: ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
Why Will ORLY Beat the Market?
- Comparable store sales rose by 3.9% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Differentiated product assortment leads to a best-in-class gross margin of 51.3%
- ORLY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $98.71 per share, O'Reilly trades at 31.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Brinker International (EAT)
Five-Year Return: +463%
Founded by Norman Brinker in Dallas, Brinker International (NYSE: EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.
Why Are We Fans of EAT?
- Same-store sales growth averaged 11.7% over the past two years, showing it’s bringing new and repeat diners into its restaurants
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
- Free cash flow margin jumped by 4.2 percentage points over the last year, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Brinker International is trading at $155.75 per share, or 16.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Pinnacle Financial Partners (PNFP)
Five-Year Return: +118%
Founded in 2000 with a focus on delivering big-bank capabilities with community bank personalization, Pinnacle Financial Partners (NASDAQ: PNFP) is a Tennessee-based financial holding company that provides banking, investment, trust, mortgage, and insurance services to businesses and individuals.
Why Do We Like PNFP?
- Annual net interest income growth of 13.5% over the last four years was superb and indicates its market share increased during this cycle
- Efficiency ratio improvement of -7 percentage points is projected for next year as the company achieves greater operating leverage
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 12.7% outpaced its revenue gains
Pinnacle Financial Partners’s stock price of $86.72 implies a valuation ratio of 1x forward P/B. Is now the right time to buy? 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 5 Growth Stocks for this month. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
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