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.
Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Keeping that in mind, here are three market-beating stocks that deserve a spot on your list.
The Cheesecake Factory (CAKE)
Five-year return: +146%
Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ: CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands.
Why Does CAKE Stand Out?
- Rapid rollout of new restaurants to capitalize on market opportunities makes sense given its strong same-store sales performance
- Customers are lining up to eat at its restaurants as the company’s same-store sales growth averaged 2.8% over the past two years
- ROIC punches in at 17.8%, illustrating management’s expertise in identifying profitable investments, and its returns are climbing as it finds even more attractive growth opportunities
At $114.74 per share, The Cheesecake Factory trades at 21.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
StoneX (SNEX)
Five-year return: +301%
Originally known as INTL FCStone until its 2020 rebranding, StoneX Group (NASDAQ: SNEX) provides a global financial services network connecting companies, traders, and investors to markets through clearing, execution, and advisory services.
Why Is SNEX a Good Business?
- Market share has increased this cycle as its 36% annual revenue growth over the last two years was exceptional
- Additional sales over the last two years increased its profitability as the 40% annual growth in its earnings per share outpaced its revenue
- Annual tangible book value per share growth of 17.1% over the last five years was superb and indicates its capital strength increased during this cycle
StoneX is trading at $56.87 per share, or 2.3x forward P/B. Is now a good time to buy? See for yourself in our full research report, it’s free.
Old Second Bancorp (OSBC)
Five-year return: +80.6%
Dating back to 1871 as one of the Chicago area's longest-standing financial institutions, Old Second Bancorp (NASDAQ: OSBC) is an Illinois-based community bank offering deposit services, commercial and consumer loans, wealth management, and mortgage products through its 53 branch locations.
Why Do We Like OSBC?
- Annual net interest income growth of 29.2% over the last five years was superb and indicates its market share increased during this cycle
- Strong performance of its loan book is reflected in its best-in-class net interest margin of 5.1%
- Efficiency ratio improved by 13.6 percentage points over the last five years as it scaled
Old Second Bancorp’s stock price of $25.18 implies a valuation ratio of 1.4x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks we like even more
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
