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. On that note, here are three market-beating stocks that deserve a spot on your list.
Bel Fuse (BELFA)
Five-Year Return: +763%
Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQ: BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.
Why Does BELFA Stand Out?
- Operating margin expanded by 11.2 percentage points over the last five years as it scaled and became more efficient
- Additional sales over the last five years increased its profitability as the 47.7% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin expanded by 11 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Bel Fuse’s stock price of $172.66 implies a valuation ratio of 25.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Kirby (KEX)
Five-Year Return: +87.2%
Transporting goods along all U.S. coasts, Kirby (NYSE: KEX) provides inland and coastal marine transportation services.
Why Do We Like KEX?
- Operating margin improvement of 26.2 percentage points over the last five years demonstrates its ability to scale efficiently
- Share buybacks catapulted its annual earnings per share growth to 30.4%, which outperformed its revenue gains over the last two years
- Historical investments are beginning to pay off as its returns on capital are growing
Kirby is trading at $125.87 per share, or 18.8x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Progressive (PGR)
Five-Year Return: +124%
Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE: PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.
Why Are We Backing PGR?
- Net premiums earned surged by 18% annually over the past two years, reflecting strong market share gains this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 72.1% annually, topping its revenue gains
- Exciting book value per share outlook for the upcoming 12 months calls for 29.7% growth, an acceleration from its two-year trend
At $206.60 per share, Progressive trades at 3.3x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
