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.
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 that deserve a spot on your list.
Republic Services (RSG)
Five-Year Return: +146%
Processing several million tons of recyclables annually, Republic (NYSE: RSG) provides waste management services for residences, companies, and municipalities.
Why Are We Fans of RSG?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 9.8% annual sales growth over the last five years
- Excellent operating margin of 18.8% highlights the efficiency of its business model, and its rise over the last five years was fueled by some leverage on its fixed costs
- Robust free cash flow margin of 13.5% gives it many options for capital deployment
Republic Services’s stock price of $223.11 implies a valuation ratio of 31.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Coherent (COHR)
Five-Year Return: +162%
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE: COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Why Do We Like COHR?
- Impressive 19.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
- $5.81 billion in revenue allows it to spread its fixed costs across a wider base
- Estimated revenue growth of 8.7% for the next 12 months implies demand will accelerate from its two-year trend
At $121.87 per share, Coherent trades at 26.4x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Cardinal Health (CAH)
Five-Year Return: +230%
Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE: CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.
Why Does CAH Stand Out?
- Dominant market position is represented by its $222.6 billion in revenue, which creates significant barriers to entry in this highly regulated industry
- Projected revenue growth of 11.9% for the next 12 months indicates demand will rise above its two-year trend
- Earnings per share grew by 8.6% annually over the last five years, above the peer group average
Cardinal Health is trading at $158.71 per share, or 16.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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
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