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3 Market-Beating Stocks with Exciting Potential

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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. Taking that into account, here are three market-beating stocks with room for further growth.

Alphabet (GOOGL)

Five-Year Return: +250%

Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ: GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube.

Why Is GOOGL a Good Business?

  1. Alphabet’s dominant Google Search sits on the pantheon of the best businesses ever. This is reflected in its robust long-term revenue growth and elite operating margin.
  2. The company’s profit margins have become even higher over time, speaking to its scale advantages and operating efficiency not only in its core Search business but also in Google Cloud Platform and YouTube.
  3. Revenue growth and increasing operating margins are the key ingredients for strong EPS growth. Google has these, and when also factoring in its share repurchases, you can see why EPS has exploded over the long term.

Alphabet’s stock price of $255.45 implies a valuation ratio of 26.6x forward price-to-earnings. Is now the right time to buy? See for yourself in our full research report, it’s free.

IonQ (IONQ)

Return Since IPO: +553%

Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.

Why Are We Bullish on IONQ?

  1. Annual revenue growth of 78.9% over the last two years was superb and indicates its market share increased during this cycle
  2. Adjusted operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
  3. Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability

IonQ is trading at $70.50 per share, or 129.7x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

LPL Financial (LPLA)

Five-Year Return: +338%

As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ: LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.

Why Should You Buy LPLA?

  1. Annual revenue growth of 22.6% over the last two years was superb and indicates its market share increased during this cycle
  2. Additional sales over the last five years increased its profitability as the 21.3% annual growth in its earnings per share outpaced its revenue
  3. Industry-leading 40.4% return on equity demonstrates management’s skill in finding high-return investments

At $334.70 per share, LPL Financial trades at 16.5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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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