The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital, and those that can maintain this trifecta year in and year out often become the legends of the investing world.

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: +1,955%

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 Should You Buy POWL?

1. Market share has increased this cycle as its 20.6% annual revenue growth over the last two years was exceptional
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 58.2% annually, topping its revenue gains
3. Free cash flow margin increased by 22 percentage points over the last five years, giving the company more capital to invest or return to shareholders

At $234.59 per share, Powell trades at 38.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Vertiv (VRT)

Five-Year Return: +1,237%

Formerly part of Emerson Electric, Vertiv (NYSE: VRT) manufactures and services infrastructure technology products for data centers and communication networks.

Why Will VRT Outperform?

1. Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 21.9% over the past two years
2. Free cash flow margin expanded by 16 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
3. Improving returns on capital reflect management’s ability to monetize investments

Vertiv’s stock price of $288.87 implies a valuation ratio of 45.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

APA Corporation (APA)

Five-Year Return: +125%

Operating in three continents with a history stretching back to 1954, APA Corporation (NASDAQ: APA) explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the U.S., Egypt, and the U.K. North Sea.

Why Is APA a Good Business?

1. Offerings and unique value proposition resonate with customers, as seen in its above-market 15.6% annual sales growth over the last five years
2. Dominant market position is represented by its $8.15 billion in revenue and gives it fixed cost leverage when sales grow
3. Strong free cash flow margin of 17.8% enables it to reinvest or return capital consistently

APA Corporation is trading at $38.83 per share, or 7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.