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. Taking that into account, here are three market-beating stocks that deserve a spot on your list.
Vertiv (VRT)
Five-Year Return: +1,073%
Formerly part of Emerson Electric, Vertiv (NYSE: VRT) manufactures and services infrastructure technology products for data centers and communication networks.
Why Will VRT Outperform?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 23.7% over the past two years
- Free cash flow margin grew by 22.4 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are climbing as management makes more lucrative bets
Vertiv’s stock price of $319.63 implies a valuation ratio of 47.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
BGC (BGC)
Five-Year Return: +93.3%
Tracing its roots back to 1945 and named after founder Bernard Gerald Cantor, BGC Group (NASDAQ: BGC) operates a global brokerage and financial technology platform that facilitates trading across fixed income, foreign exchange, equities, energy, and commodities markets.
Why Are We Bullish on BGC?
- Market share has increased this cycle as its 24.8% 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 24.6% annually
- Acceptable return on equity suggests management generated shareholder value by investing in profitable projects
At $10.79 per share, BGC trades at 7.8x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Nicolet Bankshares (NIC)
Five-Year Return: +134%
Starting as Green Bay Financial Corporation in 2000 before rebranding in 2002, Nicolet Bankshares (NYSE: NIC) is a regional bank holding company that provides commercial, agricultural, and consumer banking services primarily in Wisconsin, Michigan, and Minnesota.
Why Will NIC Beat the Market?
- Annual net interest income growth of 21.9% over the last five years was superb and indicates its market share increased during this cycle
- Net interest margin grew by 65 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more chips to play with
- Annual tangible book value per share growth of 10.2% over the last five years was superb and indicates its capital strength increased during this cycle
Nicolet Bankshares is trading at $164.09 per share, or 1.4x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
