The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital, and those that can maintain this trifecta year in and year out often become the legends of the investing world.
It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. Keeping that in mind, here are three market-beating stocks that could turbocharge your returns.
Nvidia (NVDA)
Five-Year Return: +839%
Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ: NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.
What Makes NVDA Stand Out?
- Impressive 78.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 81.5% exceeded its revenue gains over the last five years
- Robust free cash flow margin of 47.5% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business
Nvidia’s stock price of $194.41 implies a valuation ratio of 19.9x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Texas Roadhouse (TXRH)
Five-Year Return: +103%
With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ: TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.
Why Are We Fans of TXRH?
- Rapid rollout of new restaurants to capitalize on market opportunities makes sense given its strong same-store sales performance
- Same-store sales growth averaged 6.5% over the past two years, showing it’s bringing new and repeat diners into its restaurants
- Industry-leading 21% return on capital demonstrates management’s skill in finding high-return investments
At $194.05 per share, Texas Roadhouse trades at 28.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Raymond James (RJF)
Five-Year Return: +86.7%
Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE: RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.
Why Do We Like RJF?
- 11.6% annual revenue growth over the last five years surpassed the sector average as its products resonated with customers
- Share repurchases over the last five years enabled its annual earnings per share growth of 16.2% to outpace its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Raymond James is trading at $162.66 per share, or 12.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 ServiceNow (+163% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
