3 Market-Beating Stocks to Own for Decades

October 03, 2025 at 00:43 AM EDT

AVGO Cover Image

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 with room for further growth.

Broadcom (AVGO)

Five-Year Return: +828%

Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ: AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.

Why Do We Love AVGO?

Market share has increased this cycle as its 30% annual revenue growth over the last two years was exceptional
Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 76.1%
Strong free cash flow margin of 40.8% enables it to reinvest or return capital consistently

Broadcom is trading at $339.90 per share, or 43.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

TransDigm (TDG)

Five-Year Return: +164%

Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE: TDG) develops and manufactures components and systems for military and commercial aviation.

Why Will TDG Outperform?

Core business can prosper without any help from acquisitions as its organic revenue growth averaged 13% over the past two years
Incremental sales significantly boosted profitability as its annual earnings per share growth of 24.9% over the last two years outstripped its revenue performance
TDG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy

At $1,284 per share, TransDigm trades at 30.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Powell (POWL)

Five-Year Return: +1,123%

Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE: POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.

Why Will POWL Beat the Market?

Annual revenue growth of 28.7% over the last two years was superb and indicates its market share increased during this cycle
Additional sales over the last two years increased its profitability as the 124% annual growth in its earnings per share outpaced its revenue
Free cash flow margin increased by 12.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Powell’s stock price of $307.60 implies a valuation ratio of 21x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 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 Comfort Systems (+782% 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.

About Us

Additional Information

Website & Technical Help

3 Market-Beating Stocks to Own for Decades

Broadcom (AVGO)

TransDigm (TDG)

Powell (POWL)

High-Quality Stocks for All Market Conditions

More News