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.
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.
Vertiv (VRT)
Five-Year Return: +815%
Formerly part of Emerson Electric, Vertiv (NYSE:VRT) manufactures and services infrastructure technology products for data centers and communication networks.
Why Is VRT a Top Pick?
- Average organic revenue growth of 18.5% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Free cash flow margin grew by 6.5 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 $127.84 implies a valuation ratio of 34.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Bowhead Specialty (BOW)
Return Since IPO: +50.3%
Named after the Arctic bowhead whale known for navigating challenging waters, Bowhead Specialty Holdings (NYSE:BOW) is a specialty insurance company that provides customized coverage for complex and high-risk commercial sectors.
Why Is BOW a Good Business?
- Impressive 41.5% annual net premiums earned growth over the last one years indicates it’s winning market share this cycle
- Earnings per share grew by 44% annually over the last two years, massively outpacing its peers
- Impressive 85.7% annual book value per share growth over the last two years indicates it’s building equity value this cycle
At $35.78 per share, Bowhead Specialty trades at 2.8x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free.
Ameris Bancorp (ABCB)
Five-Year Return: +202%
Tracing its roots back to 1971 and expanding significantly through both organic growth and strategic acquisitions, Ameris Bancorp (NYSE:ABCB) is a financial holding company that provides a full range of banking services to retail and commercial customers across select markets in the southeastern United States.
Why Are We Positive On ABCB?
- 8.4% annual revenue growth over the last five years surpassed the sector average as its products resonated with customers
- Additional sales over the last two years increased its profitability as the 7.2% annual growth in its earnings per share outpaced its revenue
- Annual tangible book value per share growth of 14.3% over the past five years was outstanding, reflecting strong capital accumulation this cycle
Ameris Bancorp is trading at $67.74 per share, or 1.2x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. 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