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. Keeping that in mind, here are three market-beating stocks that deserve a spot on your list.
Howmet (HWM)
Five-Year Return: +823%
Inventing the first forged aluminum truck wheel, Howmet (NYSE:HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Why Do We Love HWM?
- Annual revenue growth of 13.8% over the last five years was superb and indicates its market share increased during this cycle
- Share repurchases over the last two years enabled its annual earnings per share growth of 42.8% to outpace its revenue gains
- Free cash flow margin grew by 12.7 percentage points over the last five years, giving the company more chips to play with
Howmet’s stock price of $291.28 implies a valuation ratio of 51.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
First Solar (FSLR)
Five-Year Return: +179%
Headquartered in Arizona, First Solar (NASDAQ:FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.
Why Will FSLR Outperform?
- Impressive 19.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Free cash flow margin is now positive, indicating the company has achieved financial self-sustainability
- Returns on capital are climbing as management makes more lucrative bets
First Solar is trading at $264.00 per share, or 11.3x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Skyward Specialty Insurance (SKWD)
Return Since IPO: +244%
Founded in 2006 to serve markets where standard insurance coverage falls short, Skyward Specialty Insurance (NASDAQ:SKWD) provides customized commercial property, casualty, and health insurance solutions for underserved or specialized market niches.
Why Does SKWD Stand Out?
- Market penetration was impressive this cycle as its net premiums earned expanded by 29.5% annually over the last two years
- Expected revenue growth of 16.8% for the next year suggests its market share will rise
- Impressive 25.8% annual book value per share growth over the last two years indicates it’s building equity value this cycle
At $65.70 per share, Skyward Specialty Insurance trades at 2.1x forward P/B. Is now a good time to buy? 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 is 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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.