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.
Eli Lilly (LLY)
Five-Year Return: +419%
Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE: LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.
Why Do We Love LLY?
- Impressive 41.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Adjusted operating margin expanded by 22.9 percentage points over the last two years as it scaled and became more efficient
- Share repurchases over the last five years enabled its annual earnings per share growth of 29.6% to outpace its revenue gains
At $1,043 per share, Eli Lilly trades at 27.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Pelagos Insurance (PLGO)
Return Since IPO: +78.7%
Founded in Bermuda in 2014 and designed to adapt nimbly to evolving market conditions, Pelagos Insurance (NYSE: PLGO) is a global specialty insurance and reinsurance company focused on creating value through strategic capital allocation, expert risk selection and a network of long-term underwriting partnerships.
Why Are We Fans of PLGO?
- Market penetration was impressive this cycle as its net premiums earned expanded by 13.9% annually over the last three years
- Projected revenue growth of 13.6% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Impressive 29.1% annual book value per share growth over the last four years indicates it’s building equity value this cycle
Pelagos Insurance is trading at $23.05 per share, or 0.8x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Texas Pacific Land (TPL)
Five-Year Return: +138%
One of America's largest private landowners with roughly 868,000 acres in the Permian Basin, Texas Pacific Land (NYSE: TPL) owns land in West Texas and earns revenue from oil and gas royalties, water services, and land leases.
Why Will TPL Beat the Market?
- Impressive 31.3% annual revenue growth over the last ten years indicates it’s winning market share this cycle
- Highly-profitable operating model results in strong unit economics and a best-in-class gross margin of 94.9%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Texas Pacific Land’s stock price of $397.69 implies a valuation ratio of 31.1x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
