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 with room for further growth.

Palantir Technologies (PLTR)

Five-Year Return: +554%

Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ: PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.

Why Are We Backing PLTR?

1. Billings have averaged 59.5% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
2. Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
3. Strong free cash flow margin of 50.7% enables it to reinvest or return capital consistently

Palantir Technologies’s stock price of $152.05 implies a valuation ratio of 55x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

Hubbell (HUBB)

Five-Year Return: +168%

A respected player in the electrical segment, Hubbell (NYSE: HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.

Why Are We Fans of HUBB?

1. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 17.6%, and its rise over the last five years was fueled by some leverage on its fixed costs
2. Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 19.2% outpaced its revenue gains
3. ROIC punches in at 27.3%, illustrating management’s expertise in identifying profitable investments, and its returns are climbing as it finds even more attractive growth opportunities

At $477.92 per share, Hubbell trades at 25x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Gorman-Rupp (GRC)

Five-Year Return: +81.3%

Powering fluid dynamics since 1934, Gorman-Rupp (NYSE: GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems.

Why Could GRC Be a Winner?

1. Impressive 14.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 25.1% outpaced its revenue gains

Gorman-Rupp is trading at $58.76 per share, or 26.1x forward P/E. 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

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.