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. Taking that into account, here are three market-beating stocks that deserve a spot on your list.
AppLovin (APP)
Five-Year Return: +356%
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ: APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
What Makes APP Stand Out?
- Impressive 31.4% annual revenue growth over the last two years indicates it’s winning market share
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Strong free cash flow margin of 66.3% enables it to reinvest or return capital consistently
AppLovin’s stock price of $320.50 implies a valuation ratio of 12x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Monster (MNST)
Five-Year Return: +91.6%
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Why Are We Bullish on MNST?
- Excellent operating margin of 28.6% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
- Robust free cash flow margin of 23.4% gives it many options for capital deployment
- ROIC punches in at 35.4%, illustrating management’s expertise in identifying profitable investments, and its returns are climbing as it finds even more attractive growth opportunities
At $44.46 per share, Monster trades at 36.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Rocket Lab (RKLB)
Five-Year Return: +359%
Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ: RKLB) offers rockets designed for launching small satellites.
Why Is RKLB a Good Business?
- Annual revenue growth of 53.4% over the last two years was superb and indicates its market share increased during this cycle
- Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day
- Historical investments are beginning to pay off as its returns on capital are growing
Rocket Lab is trading at $68.00 per share, or 2,831.1x forward P/E. Is now a good time to buy? Find out 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
