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. Keeping that in mind, here are three market-beating stocks that deserve a spot on your list.
Grand Canyon Education (LOPE)
Five-Year Return: +122%
Founded in 1949, Grand Canyon Education (NASDAQ: LOPE) is an educational services provider known for its operation at Grand Canyon University.
Why Are We Positive On LOPE?
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 26.5%
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are climbing as it finds even more attractive growth opportunities
- Rising returns on capital show management is finding more attractive investment opportunities
Grand Canyon Education is trading at $205 per share, or 21.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Granite Construction (GVA)
Five-Year Return: +413%
Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE: GVA) is a provider of infrastructure solutions for roads, bridges, and other projects.
Why Do We Like GVA?
- Market share has increased this cycle as its 12.2% annual revenue growth over the last two years was exceptional
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 48.5% annually
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
Granite Construction’s stock price of $81.60 implies a valuation ratio of 7.6x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Gartner (IT)
Five-Year Return: +257%
With over 2,500 research experts guiding organizations through complex technology landscapes, Gartner (NYSE: IT) provides research, advisory services, and conferences that help executives make better decisions about technology and other business priorities.
Why Is IT Interesting?
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 25.6% exceeded its revenue gains over the last five years
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
- Returns on capital are climbing as management makes more lucrative bets
At $437.85 per share, Gartner trades at 35.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks That Overcame Trump’s 2018 Tariffs
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. 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 Axon (+711% five-year return). Find your next big winner with StockStory today for free.
