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. Keeping that in mind, here are three market-beating stocks that deserve a spot on your list.
The Ensign Group (ENSG)
Five-Year Return: +127%
Founded in 1999 and named after a naval term for a flag-bearing ship, The Ensign Group (NASDAQ: ENSG) operates skilled nursing facilities, senior living communities, and rehabilitation services across 15 states, primarily serving high-acuity patients recovering from various medical conditions.
Why Are We Positive on ENSG?
- Annual revenue growth of 19.1% over the past two years was outstanding, reflecting market share gains this cycle
- Expected revenue growth of 18.3% for the next year suggests its market share will rise
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 13.9% annually
The Ensign Group is trading at $181.53 per share, or 22.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Avnet (AVT)
Five-Year Return: +151%
With a century-long history of adapting to technological evolution, Avnet (NASDAQ: AVT) is a global electronic components distributor that connects manufacturers of semiconductors and other electronic parts with businesses that need these components.
Why Could AVT Be a Winner?
- Annual revenue growth of 7.8% over the last two years beat the sector average and underscores the unique value of its offerings
- Dominant market position is represented by its $27.63 billion in revenue and gives it fixed cost leverage when sales grow
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Avnet’s stock price of $99.81 implies a valuation ratio of 9.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Core Natural Resources (CNR)
Five-Year Return: +357%
Tracing its origins to 1864 and operating some mines southwest of Pittsburgh, Core Natural Resources (NYSE: CNR) mines and exports metallurgical coal used in steelmaking and thermal coal for power generation.
Why Are We Fans of CNR?
- Annual revenue growth of 15.6% over the past ten years was outstanding, reflecting market share gains this cycle
- $4.27 billion in revenue gives it scale, which leads to bargaining power with suppliers and retailers
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $95.85 per share, Core Natural Resources trades at 22.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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.
