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.
It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. On that note, here are three market-beating stocks that deserve a spot on your list.
Broadcom (AVGO)
Five-Year Return: +702%
Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ: AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.
Why Should You Buy AVGO?
- Market share has increased this cycle as its 33.1% annual revenue growth over the last two years was exceptional
- Offerings are mission-critical for businesses and lead to a best-in-class gross margin of 76.6%
- Strong free cash flow margin of 41.9% enables it to reinvest or return capital consistently
At $379.25 per share, Broadcom trades at 24.3x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Comfort Systems (FIX)
Five-Year Return: +2,475%
Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.
Why Are We Bullish on FIX?
- Average backlog growth of 53.1% over the past two years shows it has a steady sales pipeline that will drive future orders
- Free cash flow margin jumped by 9.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Returns on capital are climbing as management makes more lucrative bets
Comfort Systems is trading at $2,010 per share, or 44.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Standex (SXI)
Five-Year Return: +263%
Holding over 500 patents globally, Standex (NYSE: SXI) is a manufacturer and distributor of industrial components for various sectors.
Why Do We Watch SXI?
- Solid 10.2% annual revenue growth over the last two years indicates its offerings solve complex business issues
- Excellent operating margin of 15.2% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Standex’s stock price of $338.01 implies a valuation ratio of 33.5x forward P/E. Is now the time to initiate a position? See for yourself in our full 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 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
