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 with room for further growth.
MACOM (MTSI)
Five-Year Return: +280%
Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
Why Are We Fans of MTSI?
- Market share has increased this cycle as its 15.8% annual revenue growth over the last two years was exceptional
- Projected revenue growth of 18.4% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings per share grew by 41.3% annually over the last five years, massively outpacing its peers
MACOM’s stock price of $135.50 implies a valuation ratio of 34.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Celsius (CELH)
Five-Year Return: +820%
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ: CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Why Should You Buy CELH?
- Annual revenue growth of 50.7% over the last three years was superb and indicates its market share is rising
- Earnings per share have massively outperformed its peers over the last three years, increasing by 82.2% annually
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are growing as it capitalizes on even better market opportunities
Celsius is trading at $59.54 per share, or 59.8x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Armstrong World (AWI)
Five-Year Return: +168%
Started as a two-man shop dating back to the 1860s, Armstrong (NYSE: AWI) provides ceiling and wall products to commercial and residential spaces.
Why Is AWI a Top Pick?
- Annual revenue growth of 11.1% over the past two years was outstanding, reflecting market share gains this cycle
- Highly efficient business model is illustrated by its impressive 24.7% operating margin, and its operating leverage amplified its profits over the last five years
- Share buybacks catapulted its annual earnings per share growth to 19.5%, which outperformed its revenue gains over the last two years
At $197.57 per share, Armstrong World trades at 26.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.