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.
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 with room for further growth.
Carvana (CVNA)
Five-Year Return: +204%
Known for its glass tower car vending machines, Carvana (NYSE:CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Why Do We Watch CVNA?
- Retail Units Sold are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Additional sales over the last three years increased its profitability as the 45% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin jumped by 30.2 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Carvana is trading at $338.51 per share, or 23.8x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
AZZ (AZZ)
Five-Year Return: +186%
Responsible for projects like nuclear facilities, AZZ (NYSE:AZZ) is a provider of metal coating and power infrastructure solutions.
Why Do We Like AZZ?
- Annual revenue growth of 9.2% over the last two years beat the sector average and underscores the unique value of its offerings
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Additional sales over the last two years increased its profitability as the 24% annual growth in its earnings per share outpaced its revenue
At $92.44 per share, AZZ trades at 15.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
First Citizens BancShares (FCNCA)
Five-Year Return: +372%
With roots dating back to 1898 and a significant expansion through its 2023 acquisition of Silicon Valley Bank, First Citizens BancShares (NASDAQGS:FCNC.A) is a bank holding company that provides financial services to individuals and businesses through its First-Citizens Bank & Trust Company subsidiary.
Why Does FCNCA Stand Out?
- Impressive 49.8% annual net interest income growth over the last four years indicates it’s winning market share this cycle
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 51.1% annually
- Annual tangible book value per share growth of 35% over the past five years was outstanding, reflecting strong capital retention this cycle
First Citizens BancShares’s stock price of $1,871 implies a valuation ratio of 1.1x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
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 Tecnoglass (+1,754% 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.