Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns, and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.
Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Keeping that in mind, here are three market-beating stocks that could turbocharge your returns.
Philip Morris (PM)
Five-Year Return: +116%
Founded in 1847, Philip Morris International (NYSE:PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.
Why Is PM a Good Business?
- Unit sales averaged 3% growth over the past two years and imply healthy demand for its products
- Unique products and pricing power lead to a best-in-class gross margin of 65.3%
- Strong free cash flow margin of 25.3% enables it to reinvest or return capital consistently
At $160.90 per share, Philip Morris trades at 20.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
HEICO (HEI)
Five-Year Return: +201%
Founded in 1957, HEICO (NYSE:HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.
Why Will HEI Outperform?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 9.6% over the past two years
- Earnings per share grew by 26.2% annually over the last two years, massively outpacing its peers
- Robust free cash flow margin of 17.5% gives it many options for capital deployment
HEICO’s stock price of $319.81 implies a valuation ratio of 62.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
ITT (ITT)
Five-Year Return: +206%
Playing a crucial role in the development of the first transatlantic television transmission in 1956, ITT (NYSE:ITT) provides motion and fluid handling equipment for various industries
Why Do We Like ITT?
- Healthy operating margin of 16.4% shows it’s a well-run company with efficient processes, and its profits increased over the last five years as it scaled
- Free cash flow margin jumped by 15.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Industry-leading 18.6% return on capital demonstrates management’s skill in finding high-return investments
ITT is trading at $180.60 per share, or 26.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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