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 with room for further growth.
Brinker International (EAT)
Five-Year Return: +520%
Founded by Norman Brinker in Dallas, Brinker International (NYSE: EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.
Why Does EAT Stand Out?
- Customers are lining up to eat at its restaurants as the company’s same-store sales growth averaged 11.7% over the past two years
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
- Free cash flow margin grew by 4.2 percentage points over the last year, giving the company more chips to play with
At $151.94 per share, Brinker International trades at 16.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
The Ensign Group (ENSG)
Five-Year Return: +252%
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 Do We Like ENSG?
- Average unit sales growth of 13.2% over the past two years reflects steady demand for its products
- Forecasted revenue growth of 14.3% for the next 12 months indicates its momentum over the last two years is sustainable
- Earnings per share grew by 18.4% annually over the last five years and trumped its peers
The Ensign Group is trading at $149.15 per share, or 23.1x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Magnite (MGNI)
Five-Year Return: +209%
Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ: MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.
Why Should You Buy MGNI?
- Impressive 33.3% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Robust free cash flow margin of 23.6% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
- Improving returns on capital suggest its past investments are beginning to deliver value
Magnite’s stock price of $16.20 implies a valuation ratio of 18x 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
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free.
