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.
The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. Keeping that in mind, here are three market-beating stocks with room for further growth.
Abercrombie and Fitch (ANF)
Five-Year Return: +720%
Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE: ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.
Why Do We Like ANF?
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 14.8% growth over the past two years
- Collection of products is difficult to replicate at scale and results in a best-in-class gross margin of 63.6%
- ANF is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Abercrombie and Fitch is trading at $88.78 per share, or 8.6x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
IonQ (IONQ)
Return Since IPO: +277%
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
Why Will IONQ Beat the Market?
- Market share has increased this cycle as its 78.8% annual revenue growth over the last two years was exceptional
- Adjusted operating margin profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Cash burn has decreased over the last five years, showing the company is becoming a more self-sustaining business
At $40.73 per share, IonQ trades at 89.6x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Wintrust Financial (WTFC)
Five-Year Return: +204%
Founded in 1991 as a community-focused alternative to big banks in the Chicago area, Wintrust Financial (NASDAQGS:WTFC) operates community banks in the Chicago area and provides specialty finance services including insurance premium financing and wealth management.
Why Are We Positive On WTFC?
- Annual net interest income growth of 18.1% over the past four years was outstanding, reflecting market share gains this cycle
- Earnings per share grew by 7.6% annually over the last two years and trumped its peers
- Annual tangible book value per share growth of 9.5% over the past five years was outstanding, reflecting strong capital accumulation this cycle
Wintrust Financial’s stock price of $127.71 implies a valuation ratio of 1.3x forward P/B. Is now the time to initiate a position? 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 5 Strong Momentum Stocks for this week. 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