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.
It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. Taking that into account, here are three market-beating stocks that could turbocharge your returns.
Cardinal Health (CAH)
Five-Year Return: +247%
Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE:CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.
Why Do We Like CAH?
- Massive revenue base of $250.7 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Projected revenue growth of 9% for the next 12 months indicates demand will rise above its two-year trend
- Share repurchases over the last five years enabled its annual earnings per share growth of 12.4% to outpace its revenue gains
Cardinal Health is trading at $195.13 per share, or 17.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Progressive (PGR)
Five-Year Return: +91.8%
Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE:PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.
Why Will PGR Outperform?
- Market penetration was impressive this cycle as its net premiums earned expanded by 16.5% annually over the last two years
- Additional sales over the last two years increased its profitability as the 41.6% annual growth in its earnings per share outpaced its revenue
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Progressive’s stock price of $192.66 implies a valuation ratio of 3.1x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Coastal Financial (CCB)
Five-Year Return: +130%
Pioneering the intersection of traditional banking and financial technology in the Pacific Northwest, Coastal Financial (NASDAQ:CCB) operates as a bank holding company that provides traditional banking services and Banking-as-a-Service (BaaS) solutions to consumers and businesses.
Why Is CCB a Top Pick?
- Annual net interest income growth of 38% over the last five years was superb and indicates its market share increased during this cycle
- Annual tangible book value per share growth of 20.3% over the past two years was outstanding, reflecting strong capital accumulation this cycle
At $71.28 per share, Coastal Financial trades at 1.9x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.