3 Market-Beating Stocks for Long-Term Investors

October 01, 2025 at 00:34 AM EDT

LNW 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.

The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. Taking that into account, here are three market-beating stocks with room for further growth.

Light & Wonder (LNW)

Five-Year Return: +135%

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 Are We Positive On LNW?

Highly efficient business model is illustrated by its impressive 21.4% operating margin
Share repurchases over the last five years enabled its annual earnings per share growth of 25.9% to outpace its revenue gains
Historical investments are beginning to pay off as its returns on capital are growing

Light & Wonder is trading at $84.39 per share, or 12.5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

United Parks & Resorts (PRKS)

Five-Year Return: +160%

Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE: PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.

Why Does PRKS Stand Out?

Healthy operating margin of 26.5% shows it’s a well-run company with efficient processes
Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Improving returns on capital reflect management’s ability to monetize investments

United Parks & Resorts’s stock price of $51.17 implies a valuation ratio of 10.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Super Micro (SMCI)

Five-Year Return: +1,721%

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 Should You Buy SMCI?

Annual revenue growth of 75.6% over the last two years was superb and indicates its market share increased during this cycle
Enormous revenue base of $21.97 billion provides significant distribution advantages
Free cash flow margin is now positive, showing the company is at an important crossroads

At $47.65 per share, Super Micro trades at 17.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

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 Strong Momentum 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-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

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3 Market-Beating Stocks for Long-Term Investors

Light & Wonder (LNW)

United Parks & Resorts (PRKS)

Super Micro (SMCI)

High-Quality Stocks for All Market Conditions

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