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.
It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. On that note, here are three market-beating stocks with room for further growth.
Nextpower (NXT)
Return Since IPO: +243%
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextpower (NASDAQ:NXT) is a provider of solar tracker systems that help solar panels follow the sun.
What Makes NXT Stand Out?
- Market share has increased this cycle as its 19.3% annual revenue growth over the last two years was exceptional
- Free cash flow margin jumped by 25.3 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Returns on capital are climbing as management makes more lucrative bets
At $104.51 per share, Nextpower trades at 21.3x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Sanmina (SANM)
Five-Year Return: +445%
Founded in 1980, Sanmina (NASDAQ:SANM) is an electronics manufacturing services company offering end-to-end solutions for various industries.
Why Will SANM Outperform?
- Impressive 19.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Exciting sales outlook for the upcoming 12 months calls for 29.3% growth, an acceleration from its two-year trend
- Share buybacks catapulted its annual earnings per share growth to 25.3%, which outperformed its revenue gains over the last two years
Sanmina’s stock price of $207.56 implies a valuation ratio of 17.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Pelagos Insurance (PLGO)
Return Since IPO: +95.7%
Founded in Bermuda in 2014 and designed to adapt nimbly to evolving market conditions, Pelagos Insurance (NYSE:PLGO) is a global specialty insurance and reinsurance company focused on creating value through strategic capital allocation, expert risk selection and a network of long-term underwriting partnerships.
Why Are We Positive on PLGO?
- Strong 13.9% annualized net premiums earned expansion over the last three years shows it’s capturing market share this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 12.9%
- Balance sheet strength has increased this cycle as its 29.1% annual book value per share growth over the last four years was exceptional
Pelagos Insurance is trading at $25.24 per share, or 0.9x forward P/B. Is now the right time to buy? See for yourself in our in-depth 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.