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.
Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Keeping that in mind, here are three market-beating stocks that could turbocharge your returns.
TJX (TJX)
Five-Year Return: +137%
Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE: TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.
Why Are We Fans of TJX?
- Comparable store sales rose by 3.9% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Dominant market position is represented by its $60.37 billion in revenue, which compensates for its subpar gross margin
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are growing as it capitalizes on even better market opportunities
At $158.22 per share, TJX trades at 31.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
EMCOR (EME)
Five-Year Return: +521%
Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services
Why Are We Bullish on EME?
- Impressive 16.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share buybacks catapulted its annual earnings per share growth to 45.6%, which outperformed its revenue gains over the last two years
- Returns on capital are climbing as management makes more lucrative bets
EMCOR’s stock price of $715.95 implies a valuation ratio of 25.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Travelers (TRV)
Five-Year Return: +89.5%
Tracing its roots back to 1853 when it insured travelers against accidents on steamboats and railroads, Travelers (NYSE: TRV) provides a wide range of commercial and personal property and casualty insurance products to businesses, government units, associations, and individuals.
Why Do We Like TRV?
- Pre-tax profits increased over the last two years as the company gained some leverage on its fixed costs and became more efficient
- Share repurchases over the last two years enabled its annual earnings per share growth of 45.2% to outpace its revenue gains
- Capital generation for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust book value per share growth of 19.4%
Travelers is trading at $298.00 per share, or 1.8x forward P/B. Is now the right time to buy? See for yourself 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
