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.

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.

Dycom (DY)

Five-Year Return: +288%

Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE: DY) builds and maintains telecommunications infrastructure.

Why Do We Love DY?

1. Impressive 15.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Operating margin improvement of 5.1 percentage points over the last five years demonstrates its ability to scale efficiently
3. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 21.1% annually, topping its revenue gains

Dycom is trading at $377.10 per share, or 25.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

NMI Holdings (NMIH)

Five-Year Return: +67.9%

Founded in the aftermath of the 2008 housing crisis to bring new capacity to the mortgage insurance market, NMI Holdings (NASDAQ: NMIH) provides mortgage insurance that protects lenders against losses when homebuyers default on their mortgage loans.

Why Are We Positive On NMIH?

1. Pre-tax profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
2. Impressive 16.1% annual book value per share growth over the last five years indicates it’s building equity value this cycle
3. Industry-leading 17.4% return on equity demonstrates management’s skill in finding high-return investments

NMI Holdings’s stock price of $38.90 implies a valuation ratio of 1x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Liberty Energy (LBRT)

Five-Year Return: +162%

Operating approximately 40 active fleets across North America's most productive shale basins, Liberty Energy (NYSE: LBRT) provides hydraulic fracturing services that help oil and gas companies extract resources from shale formations.

Why Does LBRT Stand Out?

1. Market share has increased this cycle as its 30.1% annual revenue growth over the last nine years was exceptional
2. Economies of scale give it some operating leverage when demand rises
3. EBITDA margin expanded by 10.9 percentage points over the last five years as it scaled and became more efficient

At $28.42 per share, Liberty Energy trades at 10.8x forward EV-to-EBITDA. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.