Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns, and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.
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 deserve a spot on your list.
Blue Bird (BLBD)
Five-Year Return: +121%
With around a century of experience, Blue Bird (NASDAQ: BLBD) is a manufacturer of school buses and complementary parts.
Why Do We Love BLBD?
- Market share has increased this cycle as its 11.9% annual revenue growth over the last five years was exceptional
- Free cash flow margin jumped by 23.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Improving returns on capital reflect management’s ability to monetize investments
Blue Bird is trading at $53.53 per share, or 11.8x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Natera (NTRA)
Five-Year Return: +76.5%
Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ: NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.
Why Will NTRA Beat the Market?
- Average unit sales growth of 19.5% over the past two years reflects steady demand for its products
- Adjusted operating margin expanded by 32 percentage points over the last two years as it scaled and became more efficient
- Free cash flow turned positive over the last five years, showing the company has crossed a key inflection point
Natera’s stock price of $192.46 implies a valuation ratio of 10.6x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
UL Solutions (ULS)
Return Since IPO: +140%
Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE: ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards.
Why Does ULS Catch Our Eye?
- Adjusted operating profits increased over the last four years as the company gained some leverage on its fixed costs and became more efficient
- Free cash flow margin increased by 7.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Industry-leading 28.5% return on capital demonstrates management’s skill in finding high-return investments
At $83.75 per share, UL Solutions trades at 37.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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.
