3 Market-Beating Stocks on Our Watchlist

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.

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.

Lam Research (LRCX)

Five-Year Return: +389%

Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ:LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.

Why Are We Backing LRCX?

1. Market share has increased this cycle as its 23.4% annual revenue growth over the last two years was exceptional
2. Excellent operating margin of 32.8% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
3. ROIC punches in at 64.2%, illustrating management’s expertise in identifying profitable investments

Lam Research is trading at $317.63 per share, or 42.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

VSE Corporation (VSEC)

Five-Year Return: +270%

With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ:VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.

Why Do We Like VSEC?

1. Annual revenue growth of 13.7% over the past two years was outstanding, reflecting market share gains this cycle
2. Projected revenue growth of 66.4% for the next 12 months is above its two-year trend, pointing to accelerating demand
3. Operating margin expanded by 5.1 percentage points over the last five years as it scaled and became more efficient

At $182.61 per share, VSE Corporation trades at 39.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

NetApp (NTAP)

Five-Year Return: +127%

Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ:NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.

Why Could NTAP Be a Winner?

1. Billings growth has averaged 7.3% over the past two years, indicating a healthy pipeline of new contracts that should drive future revenue increases
2. Share repurchases over the last five years enabled its annual earnings per share growth of 15% to outpace its revenue gains
3. Robust free cash flow margin of 20.3% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety

NetApp’s stock price of $173.75 implies a valuation ratio of 16.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.