
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.
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 could turbocharge your returns.
Lam Research (LRCX)
Five-Year Return: +269%
Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ: LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.
Why Are We Bullish on LRCX?
- Market share has increased this cycle as its 19.8% annual revenue growth over the last two years was exceptional
- Strong free cash flow margin of 27.9% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
- Industry-leading 64.5% return on capital demonstrates management’s skill in finding high-return investments
Lam Research is trading at $244.48 per share, or 36.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Granite Construction (GVA)
Five-Year Return: +220%
Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE: GVA) is a provider of infrastructure solutions for roads, bridges, and other projects.
Why Are We Positive On GVA?
- Annual revenue growth of 12.3% over the past two years was outstanding, reflecting market share gains this cycle
- Additional sales over the last two years increased its profitability as the 38.9% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 9.6 percentage points over the last five years, giving the company more chips to play with
Granite Construction’s stock price of $125.97 implies a valuation ratio of 19.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
PJT (PJT)
Five-Year Return: +119%
Spun off from Blackstone in 2015 and founded by former Morgan Stanley executive Paul J. Taubman, PJT Partners (NYSE: PJT) is an advisory-focused investment bank that provides strategic advice, restructuring services, and fundraising solutions to corporations, boards, and investment firms.
Why Does PJT Catch Our Eye?
- Market share has increased this cycle as its 21.9% annual revenue growth over the last two years was exceptional
- Share repurchases over the last two years enabled its annual earnings per share growth of 46.2% to outpace its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $146.75 per share, PJT trades at 18.6x 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
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 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.
