The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital, and those that can maintain this trifecta year in and year out often become the legends of the investing world.

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 with room for further growth.

Paychex (PAYX)

Five-Year Return: +98.5%

One of the oldest service providers in the industry, Paychex (NASDAQ: PAYX) offers its customers payroll and HR software solutions.

Why Are We Fans of PAYX?

1. Sales outlook for the upcoming 12 months calls for 17.5% growth, an acceleration from its three-year trend
2. Healthy operating margin of 39.6% shows it’s a well-run company with efficient processes
3. Strong free cash flow margin of 31.6% enables it to reinvest or return capital consistently

Paychex’s stock price of $145.99 implies a valuation ratio of 8.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

Dick's (DKS)

Five-Year Return: +370%

Started as a hunting supply store, Dick’s Sporting Goods (NYSE: DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.

Why Do We Like DKS?

1. Comparable store sales rose by 4% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
2. Earnings growth has easily exceeded the peer group average over the last six years as its EPS has compounded at 27.4% annually
3. Industry-leading 24.5% return on capital demonstrates management’s skill in finding high-return investments

At $219.98 per share, Dick's trades at 15.1x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

GE Aerospace (GE)

Five-Year Return: +414%

One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.

Why Are We Bullish on GE?

1. Market share has increased this cycle as its 16.1% annual revenue growth over the last two years was exceptional
2. Robust free cash flow margin of 18.1% gives it many options for capital deployment
3. Returns on capital are growing as management capitalizes on its market opportunities

GE Aerospace is trading at $270.79 per share, or 45.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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.

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