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. Taking that into account, here are three market-beating stocks that deserve a spot on your list.
Quanta (PWR)
Five-Year Return: +544%
A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Is PWR a Top Pick?
- Demand is greater than supply as the company’s 18% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Market share will likely rise over the next 12 months as its expected revenue growth of 17.7% is robust
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 22.4% annually
At $603.30 per share, Quanta trades at 44.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Coherent (COHR)
Five-Year Return: +358%
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE:COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Why Is COHR on Our Radar?
- Impressive 16.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 24.7%
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 69.9% annually
Coherent’s stock price of $347.05 implies a valuation ratio of 51.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
McKesson (MCK)
Five-Year Return: +345%
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE:MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Will MCK Outperform?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 14.9% annual sales growth over the last two years
- Massive revenue base of $398 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
McKesson is trading at $866.50 per share, or 20.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.