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.
Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Keeping that in mind, here are three market-beating stocks with room for further growth.
Powell (POWL)
Five-Year Return: +989%
Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE: POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.
Why Are We Backing POWL?
- Annual revenue growth of 25.7% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 86.5% outpaced its revenue gains
- Free cash flow margin expanded by 21.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $317.42 per share, Powell trades at 21.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Waste Management (WM)
Five-Year Return: +87.4%
Headquartered in Houston, Waste Management (NYSE: WM) is a provider of comprehensive waste management services in North America.
Why Are We Fans of WM?
- Annual revenue growth of 10.9% over the past two years was outstanding, reflecting market share gains this cycle
- Superior product capabilities and pricing power are reflected in its top-tier gross margin of 38.7%
- Highly efficient business model is illustrated by its impressive 17.2% operating margin
Waste Management is trading at $220 per share, or 27.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
First Solar (FSLR)
Five-Year Return: +174%
Headquartered in Arizona, First Solar (NASDAQ: FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.
Why Do We Love FSLR?
- Market share has increased this cycle as its 26.4% annual revenue growth over the last two years was exceptional
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 71.6% annually, topping its revenue gains
- Free cash flow margin is now positive, indicating the company has passed a significant test
First Solar’s stock price of $256 implies a valuation ratio of 11.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
