Stocks that outperform the market usually share key traits such as rising sales, expanding margins, and increasing returns on capital. The select few that can do all three for many years are often the ones that make you life-changing 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 deserve a spot on your list.
ESCO (ESE)
Five-Year Return: +248%
A developer of the communication systems used in the Batmobile of “The Dark Knight,” ESCO (NYSE: ESE) is a provider of engineered components for the aerospace, defense, and utility sectors.
Why Are We Bullish on ESE?
- Market share has increased this cycle as its 15.1% annual revenue growth over the last two years was exceptional
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 42.6% annually, topping its revenue gains
- Free cash flow margin grew by 9.3 percentage points over the last five years, giving the company more chips to play with
ESCO is trading at $268.17 per share, or 30.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Belden (BDC)
Five-Year Return: +87.2%
With its enamel-coated copper wire used in WWI for the Allied forces, Belden (NYSE: BDC) designs, manufactures, and sells electronic components to various industries.
Why Are We Fans of BDC?
- Market share has increased this cycle as its 11.2% annual revenue growth over the last two years was exceptional
- Market share is on track to rise over the next 12 months as its 34.4% projected revenue growth implies demand will accelerate from its two-year trend
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.7% exceeded its revenue gains over the last two years
Belden’s stock price of $113.40 implies a valuation ratio of 12x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Kinder Morgan (KMI)
Five-Year Return: +82.5%
Operating what amounts to the toll roads of the energy industry, Kinder Morgan (NYSE: KMI) transports natural gas, refined petroleum products, and crude oil through its pipeline network across North America.
Why Are We Positive on KMI?
- Enormous revenue base of $17.96 billion provides significant leverage in supplier negotiations
- EBITDA margin expanded by 9.1 percentage points over the last five years as it scaled and became more efficient
- Robust free cash flow margin of 19.9% gives it many options for capital deployment
At $30.83 per share, Kinder Morgan trades at 21.1x forward P/E. Is now the right time to buy? 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 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 Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
