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.
Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. On that note, here are three market-beating stocks that deserve a spot on your list.
Philip Morris (PM)
Five-Year Return: +84.8%
Founded in 1847, Philip Morris International (NYSE: PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.
Why Is PM a Top Pick?
- Unique products and pricing power are reflected in its best-in-class gross margin of 67%
- Healthy operating margin of 37% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
Philip Morris is trading at $190.50 per share, or 22.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Dell (DELL)
Five-Year Return: +381%
Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE: DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.
Why Should You Buy DELL?
- Impressive 22.2% 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 38.8% exceeded its revenue gains over the last two years
- Returns on capital are growing as management capitalizes on its market opportunities
At $471.75 per share, Dell trades at 24.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
TD SYNNEX (SNX)
Five-Year Return: +97.4%
Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE: SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.
Why Is SNX a Good Business?
- Impressive 25.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Unparalleled revenue scale of $69.77 billion gives it an edge in distribution
- Share repurchases over the last two years enabled its annual earnings per share growth of 20.9% to outpace its revenue gains
TD SYNNEX’s stock price of $255.30 implies a valuation ratio of 13x forward P/E. Is now the right time to buy? 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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
