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. On that note, here are three market-beating stocks that deserve a spot on your list.

Texas Roadhouse (TXRH)

Five-Year Return: +280%

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ: TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.

Why Is TXRH a Top Pick?

1. Fast expansion of new restaurants to reach markets with few or no locations is justified by its same-store sales growth
2. Same-store sales growth over the past two years shows it’s successfully drawing diners into its restaurants
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its rising returns show it’s making even more lucrative bets

At $187.09 per share, Texas Roadhouse trades at 26.3x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Cardinal Health (CAH)

Five-Year Return: +225%

Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE: CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.

Why Does CAH Stand Out?

1. Dominant market position is represented by its $222.3 billion in revenue, which creates significant barriers to entry in this highly regulated industry
2. Projected revenue growth of 9.5% for the next 12 months indicates demand will rise above its two-year trend
3. Earnings per share grew by 7.7% annually over the last five years and topped the peer group average

Cardinal Health is trading at $162.17 per share, or 18.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

F&G Annuities & Life (FG)

Return Since IPO: +84.6%

Founded in 1959 and serving approximately 677,000 policyholders who rely on its financial protection products, F&G Annuities & Life (NYSE: FG) provides fixed annuities, life insurance, and pension risk transfer solutions to retail and institutional clients.

Why Will FG Beat the Market?

1. Impressive 33.9% annual net premiums earned growth over the last two years indicates it’s winning market share this cycle
2. Impressive 28.3% annual book value per share growth over the last two years indicates it’s building equity value this cycle
3. Capital strength is on track to rise over the next 12 months as its 50.3% projected book value per share growth implies profitability will accelerate from its two-year trend

F&G Annuities & Life’s stock price of $30.92 implies a valuation ratio of 0.9x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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