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.
Sprouts (SFM)
Five-Year Return: +238%
Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ: SFM) is a grocery store chain emphasizing natural and organic products.
Why Are We Positive on SFM?
- Offensive push to build new stores and attack its untapped market opportunities is backed by its same-store sales growth
- Comparable store sales rose by 6.8% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Market share will likely rise over the next 12 months as its expected revenue growth of 9.5% is robust
Sprouts is trading at $87.25 per share, or 15.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Watts Water Technologies (WTS)
Five-Year Return: +153%
Founded in 1874, Watts Water (NYSE: WTS) specializes in manufacturing water products and systems for residential, commercial, and industrial applications globally.
Why Will WTS Beat the Market?
- Impressive 10.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share repurchases over the last five years enabled its annual earnings per share growth of 21.9% to outpace its revenue gains
- Free cash flow margin jumped by 6.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Watts Water Technologies’s stock price of $369.56 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.
AbbVie (ABBV)
Five-Year Return: +119%
Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE: ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.
Why Does ABBV Stand Out?
- Unparalleled scale of $62.82 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
- Robust free cash flow margin of 35.7% gives it many options for capital deployment
- ROIC punches in at 17.5%, illustrating management’s expertise in identifying profitable investments
At $255.65 per share, AbbVie trades at 17.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
