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. On that note, here are three market-beating stocks that deserve a spot on your list.
Stride (LRN)
Five-Year Return: +159%
Formerly known as K12, Stride (NYSE:LRN) is an education technology company providing education solutions through digital platforms.
Why Is LRN a Top Pick?
- Market share has increased this cycle as its 11.1% annual revenue growth over the last two years was exceptional
- Free cash flow margin grew by 5.8 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are climbing as management makes more lucrative bets
Stride’s stock price of $86.49 implies a valuation ratio of 9.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Caterpillar (CAT)
Five-Year Return: +284%
With its iconic yellow machinery working on construction sites, Caterpillar (NYSE:CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.
Why Should CAT Be on Your Watchlist?
- Annual revenue growth of 10.2% over the last five years beat the sector average and underscores the unique value of its offerings
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 21.7% exceeded its revenue gains over the last five years
- Free cash flow margin increased by 6.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $799.00 per share, Caterpillar trades at 27.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
UL Solutions (ULS)
Return Since IPO: +114%
Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE:ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards.
Why Do We Love ULS?
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 23% annually, topping its revenue gains
- Free cash flow margin increased by 6.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- ROIC punches in at 26.6%, illustrating management’s expertise in identifying profitable investments
UL Solutions is trading at $74.64 per share, or 30.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.