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.
The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. On that note, here are three market-beating stocks that could turbocharge your returns.
Urban Outfitters (URBN)
Five-Year Return: +316%
Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ: URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion.
Why Is URBN on Our Radar?
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 4.2% growth over the past two years
- Projected revenue growth of 8% for the next 12 months indicates demand will rise above its six-year trend
- Earnings per share have massively outperformed its peers over the last five years, increasing by 46.7% annually
At $72.01 per share, Urban Outfitters trades at 16.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Boston Scientific (BSX)
Five-Year Return: +178%
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Why Is BSX Interesting?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 14.9% over the past two years
- Forecasted revenue growth of 14.5% for the next 12 months indicates its momentum over the last two years is sustainable
- Performance over the past five years shows its incremental sales were more profitable, as its annual earnings per share growth of 12.2% outpaced its revenue gains
Boston Scientific is trading at $104.15 per share, or 35.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Pure Storage (PSTG)
Five-Year Return: +212%
Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE: PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.
Why Are We Bullish on PSTG?
- Offerings are pivotal for their customers' operations as its ARR has averaged 23.5% growth over the past two years
- Additional sales over the last five years increased its profitability as the 36.9% annual growth in its earnings per share outpaced its revenue
- Strong free cash flow margin of 17% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
Pure Storage’s stock price of $53.00 implies a valuation ratio of 29.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
