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. Taking that into account, here are three market-beating stocks with room for further growth.
Applied Materials (AMAT)
Five-Year Return: +294%
Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ: AMAT) is the largest provider of semiconductor wafer fabrication equipment.
Why Are We Positive on AMAT?
- Estimated revenue growth of 44.5% for the next 12 months implies demand will accelerate from its two-year trend
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 29.9%
- ROIC punches in at 45.4%, illustrating management’s expertise in identifying profitable investments
Applied Materials’s stock price of $506.90 implies a valuation ratio of 30.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Amphenol (APH)
Five-Year Return: +350%
With over 90 years of connecting the world's technologies, Amphenol (NYSE: APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.
Why Are We Bullish on APH?
- Market share has increased this cycle as its 47.2% annual revenue growth over the last two years was exceptional
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 62.1% over the last two years outstripped its revenue performance
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $166.81 per share, Amphenol trades at 28.2x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Amalgamated Financial (AMAL)
Five-Year Return: +229%
Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.
Why Do We Like AMAL?
- Annual net interest income growth of 12.9% over the last five years beat the sector average and underscores the value of its loans
- Share buybacks catapulted its annual earnings per share growth to 17.3%, which outperformed its revenue gains over the last five years
- Annual tangible book value per share growth of 10% over the last five years was superb and indicates its capital strength increased during this cycle
Amalgamated Financial is trading at $51.10 per share, or 1.7x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
