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 that deserve a spot on your list.

Applied Materials (AMAT)

Five-Year Return: +202%

Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ: AMAT) is the largest provider of semiconductor wafer fabrication equipment.

Why Does AMAT Stand Out?

1. Impressive 13% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Highly efficient business model is illustrated by its impressive 29.1% operating margin, and its operating leverage amplified its profits over the last five years
3. Industry-leading 47.1% return on capital demonstrates management’s skill in finding high-return investments

Applied Materials’s stock price of $154.97 implies a valuation ratio of 16.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Chipotle (CMG)

Five-Year Return: +185%

Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE: CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.

Why Will CMG Beat the Market?

1. Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
2. Same-store sales growth averaged 6.2% over the past two years, showing it’s bringing new and repeat diners into its restaurants
3. Massive revenue base of $11.49 billion makes it a household name that influences purchasing decisions

At $51.09 per share, Chipotle trades at 38.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Intuitive Surgical (ISRG)

Five-Year Return: +202%

Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.

Why Is ISRG on Our Radar?

1. Products are seeing elevated demand as its system placement averaged 11.8% growth over the past two years
2. Projected revenue growth of 14.8% for the next 12 months suggests its momentum from the last two years will persist
3. Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 12.3% annually

Intuitive Surgical is trading at $540 per share, or 63.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks That Overcame Trump’s 2018 Tariffs

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.