3 Market-Beating Stocks for Long-Term Investors

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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. On that note, here are three market-beating stocks with room for further growth.

OSI Systems (OSIS)

Five-Year Return: +133%

With security scanners deployed at airports and borders worldwide and patient monitors used in hospitals across the globe, OSI Systems (NASDAQ: OSIS) designs and manufactures specialized electronic systems for security screening, patient monitoring, and optoelectronic applications.

Why Are We Bullish on OSIS?

  1. Market share has increased this cycle as its 10.9% annual revenue growth over the last two years was exceptional
  2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
  3. Rising returns on capital show management is finding more attractive investment opportunities

OSI Systems is trading at $230.43 per share, or 20.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Kratos (KTOS)

Five-Year Return: +184%

Established with a commitment to supporting national security, Kratos (NASDAQ: KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications.

Why Is KTOS a Good Business?

  1. Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 14.9% over the past two years
  2. Market share is on track to rise over the next 12 months as its 30.9% projected revenue growth implies demand will accelerate from its two-year trend
  3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 18.7% annually

At $64.56 per share, Kratos trades at 67.8x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Noble Corporation (NE)

Five-Year Return: +104%

With origins dating back over a century to 1921, Noble Corporation (NYSE: NE) operates drilling rigs that oil and gas companies charter to drill wells in deep ocean waters and shallow seas.

Why Do We Watch NE?

  1. Annual revenue growth of 29.7% over the last five years was superb and indicates its market share increased during this cycle
  2. Revenue base of $3.07 billion gives it economies of scale and some negotiating power with suppliers
  3. EBITDA margin expanded by 15.7 percentage points over the last five years as it scaled and became more efficient

Noble Corporation’s stock price of $44.99 implies a valuation ratio of 55.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

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