3 Market-Beating Stocks for Long-Term Investors

AZO Cover Image

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. Taking that into account, here are three market-beating stocks that could turbocharge your returns.

AutoZone (AZO)

Five-Year Return: +132%

Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE: AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.

Why Are We Backing AZO?

  1. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 2.7% over the past two years
  2. Excellent operating margin of 19.2% highlights the efficiency of its business model
  3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

AutoZone’s stock price of $3,300 implies a valuation ratio of 21.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Sterling (STRL)

Five-Year Return: +1,755%

Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ: STRL) provides civil infrastructure construction.

Why Do We Love STRL?

  1. Annual revenue growth of 12.4% over the past two years was outstanding, reflecting market share gains this cycle
  2. Strong free cash flow margin of 15.2% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
  3. Returns on capital are growing as management capitalizes on its market opportunities

Sterling is trading at $418.12 per share, or 30.8x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

RBC Bearings (RBC)

Five-Year Return: +179%

With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE: RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.

Why Is RBC a Top Pick?

  1. Annual revenue growth of 23.1% over the past five years was outstanding, reflecting market share gains this cycle
  2. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 18.3% annually
  3. RBC is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

At $536.10 per share, RBC Bearings trades at 40.5x 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

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.

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