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3 Market-Beating Stocks with Promising Prospects

KLAC Cover Image

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 that could turbocharge your returns.

KLA Corporation (KLAC)

Five-Year Return: +397%

Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ: KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.

Why Is KLAC a Good Business?

  1. Impressive 16% annual revenue growth over the last five years indicates it’s winning market share this cycle
  2. Superior product capabilities and pricing power lead to a best-in-class gross margin of 60.7%
  3. Robust free cash flow margin of 32.8% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute

KLA Corporation is trading at $1,518 per share, or 35.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Costco (COST)

Five-Year Return: +192%

Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ: COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.

Why Is COST Interesting?

  1. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 6.2% over the past two years
  2. Dominant market position is represented by its $286.3 billion in revenue, which compensates for its subpar gross margin
  3. Industry-leading 34.7% return on capital demonstrates management’s skill in finding high-return investments, and its rising returns show it’s making even more lucrative bets

At $976.68 per share, Costco trades at 46x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Dick's (DKS)

Five-Year Return: +144%

Started as a hunting supply store, Dick’s Sporting Goods (NYSE: DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.

Why Do We Like DKS?

  1. Offensive push to build new stores and attack its untapped market opportunities is backed by its same-store sales growth
  2. Same-store sales growth averaged 4.1% over the past two years, showing it’s bringing new and repeat shoppers into its stores
  3. Projected revenue growth of 29.6% for the next 12 months is above its three-year trend, pointing to accelerating demand

Dick’s stock price of $193.10 implies a valuation ratio of 13.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth 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.

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