3 Market-Beating Stocks Worth Your Attention

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.

The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. Keeping that in mind, here are three market-beating stocks with room for further growth.

Alphabet (GOOGL)

Five-Year Return: +164%

Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ:GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube.

Why Should You Buy GOOGL?

1. Alphabet’s dominant Google Search sits on the pantheon of the best businesses ever. This is reflected in its robust long-term revenue growth and elite operating margin.
2. The company’s profit margins have become even higher over time, speaking to its scale advantages and operating efficiency not only in its core Search business but also in Google Cloud Platform and YouTube.
3. Revenue growth and increasing operating margins are the key ingredients for strong EPS growth. Google has these, and when also factoring in its share repurchases, you can see why EPS has exploded over the long term.

Alphabet’s stock price of $272.31 implies a valuation ratio of 23.9x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.

Axon (AXON)

Five-Year Return: +190%

Providing body cameras and tasers for first responders, AXON (NASDAQ:AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.

Why Are We Bullish on AXON?

1. ARR trends over the past two years show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
2. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
3. Earnings per share grew by 28.8% annually over the last two years and trumped its peers

At $413.36 per share, Axon trades at 55.4x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

OSI Systems (OSIS)

Five-Year Return: +175%

With security scanners deployed at airports and borders worldwide and patient monitors used in hospitals across the globe, OSI Systems (NASDAQ:OSIS) designs and manufactures specialized electronic systems for security screening, patient monitoring, and optoelectronic applications.

Why Do We Love OSIS?

1. Market share has increased this cycle as its 14.7% annual revenue growth over the last two years was exceptional
2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Free cash flow margin increased by 4.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders

OSI Systems is trading at $264.10 per share, or 24.8x 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

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.