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3 Market-Beating Stocks for Long-Term Investors

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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. On that note, here are three market-beating stocks with room for further growth.

Nvidia (NVDA)

Five-Year Return: +1,258%

Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ: NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.

Why Is NVDA a Top Pick?

  1. Annual revenue growth of 104% over the past two years was outstanding, reflecting market share gains this cycle
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 79.1% exceeded its revenue gains over the last five years
  3. NVDA is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy

Nvidia’s stock price of $185.03 implies a valuation ratio of 27x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Abercrombie and Fitch (ANF)

Five-Year Return: +463%

Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE: ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.

Why Will ANF Outperform?

  1. Comparable store sales rose by 11.9% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
  2. Collection of products is difficult to replicate at scale and results in a best-in-class gross margin of 63.3%
  3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 189% exceeded its revenue gains over the last three years

Abercrombie and Fitch is trading at $129.78 per share, or 12.5x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Leidos (LDOS)

Five-Year Return: +87.7%

Formed through the split of IT services company SAIC, Leidos (NYSE: LDOS) offers technology and engineering solutions such as military training systems for the defense, civil, and health markets.

Why Do We Like LDOS?

  1. Average backlog growth of 15.2% over the past two years shows it has a steady sales pipeline that will drive future orders
  2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
  3. Free cash flow margin increased by 3.3 percentage points over the last five years, giving the company more capital to invest or return to shareholders

At $195.19 per share, Leidos trades at 16.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as ServiceNow (+163% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

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