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.
Acuity Brands (AYI)
Five-Year Return: +91.2%
One of the pioneers of smart lights, Acuity (NYSE: AYI) designs and manufactures light fixtures and building management systems used in various industries.
Why Are We Fans of AYI?
- Solid 9.8% annual revenue growth over the last two years indicates its offerings solve complex business issues
- Offerings are difficult to replicate at scale and result in a best-in-class gross margin of 45.7%
- Free cash flow margin jumped by 8.6 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Acuity Brands’s stock price of $327.16 implies a valuation ratio of 15.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
BrightSpring Health Services (BTSG)
Return Since IPO: +539%
Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.
Why Should BTSG Be on Your Watchlist?
- Annual revenue growth of 22.6% over the last two years was superb and indicates its market share increased during this cycle
- Economies of scale give it more fixed cost leverage than its smaller competitors
- Projected revenue growth of 14.2% for the next 12 months suggests its momentum from the last two years will persist
BrightSpring Health Services is trading at $70.25 per share, or 39.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Permian Resources (PR)
Five-Year Return: +280%
Controlling roughly 450,000 net acres in America's most productive oil patch, Permian Resources (NYSE: PR) is an oil and natural gas producer that drills wells and extracts hydrocarbons from underground reservoirs in West Texas and New Mexico.
What Makes PR Stand Out?
- Annual revenue growth of 44.4% over the last ten years was superb and indicates its market share increased during this cycle
- Highly-profitable operating model results in strong unit economics and a best-in-class gross margin of 75.7%
- PR is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $21.59 per share, Permian Resources trades at 9.9x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
