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. Keeping that in mind, here are three market-beating stocks that could turbocharge your returns.

Ulta (ULTA)

Five-Year Return: +127%

Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ: ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.

Why Are We Positive On ULTA?

1. Store expansion strategy is justified by its healthy same-store sales
2. Locations open for at least a year are seeing increased demand as same-store sales have averaged 2.6% growth over the past two years
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Ulta’s stock price of $664.72 implies a valuation ratio of 24.3x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Pure Storage (PSTG)

Five-Year Return: +223%

Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE: PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.

Why Are We Backing PSTG?

1. Ability to secure long-term commitments with customers is evident in its 21.2% average ARR growth over the past two years
2. Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 44.3% outpaced its revenue gains
3. Robust free cash flow margin of 17% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety

At $73.08 per share, Pure Storage trades at 33.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Axos Financial (AX)

Five-Year Return: +124%

Originally founded as Bank of Internet USA in 1999 before rebranding in 2018, Axos Financial (NYSE: AX) is a diversified financial services company that provides digital banking, securities clearing, and investment advisory solutions to retail and business customers nationwide.

Why Is AX a Good Business?

1. Annual net interest income growth of 17.6% over the past five years was outstanding, reflecting market share gains this cycle
2. Differentiated product suite results in a Strong performance of its loan book is reflected in its High-yielding loan book and low cost of funds lead to a best-in-class net interest margin of 4.8%
3. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

Axos Financial is trading at $94.44 per share, or 1.7x forward P/B. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.