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.

Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Taking that into account, here are three market-beating stocks with room for further growth.

Monster (MNST)

Five-Year Return: +71.9%

Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.

Why Is MNST a Good Business?

1. Excellent operating margin of 27.7% highlights the efficiency of its business model, and its operating leverage amplified its profits over the last year
2. Strong free cash flow margin of 23% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are growing as it capitalizes on even better market opportunities

Monster is trading at $76.83 per share, or 34x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Philip Morris (PM)

Five-Year Return: +98.7%

Founded in 1847, Philip Morris International (NYSE: PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.

Why Should You Buy PM?

1. Products are seeing elevated demand as its unit sales averaged 3% growth over the past two years
2. Unique products and pricing power result in a best-in-class gross margin of 66%
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

At $175.25 per share, Philip Morris trades at 20.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

ITT (ITT)

Five-Year Return: +116%

Playing a crucial role in the development of the first transatlantic television transmission in 1956, ITT (NYSE: ITT) provides motion and fluid handling equipment for various industries

Why Are We Bullish on ITT?

1. Solid 9.7% annual revenue growth over the last five years indicates its offering’s solve complex business issues
2. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 17.2%
3. Free cash flow margin jumped by 17.6 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

ITT’s stock price of $187.76 implies a valuation ratio of 25.4x 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

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth 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.