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.
Philip Morris (PM)
Five-Year Return: +86.1%
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 Should You Buy PM?
- Unique products and pricing power result in a best-in-class gross margin of 66.5%
- Healthy operating margin of 36.5% shows it’s a well-run company with efficient processes
- Strong free cash flow margin of 26.1% enables it to reinvest or return capital consistently
At $179.42 per share, Philip Morris trades at 20.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Tenet Healthcare (THC)
Five-Year Return: +139%
With a network spanning nine states and serving primarily urban and suburban communities, Tenet Healthcare (NYSE:THC) operates a nationwide network of hospitals, ambulatory surgery centers, and outpatient facilities providing acute care and specialty healthcare services.
Why Do We Like THC?
- Share buybacks catapulted its annual earnings per share growth to 16.8%, which outperformed its revenue gains over the last five years
- Free cash flow margin grew by 12.7 percentage points over the last five years, giving the company more chips to play with
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are climbing as it finds even more attractive growth opportunities
Tenet Healthcare’s stock price of $162.09 implies a valuation ratio of 9.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Noble Corporation (NE)
Five-Year Return: +83.4%
With origins dating back over a century to 1921, Noble Corporation (NYSE:NE) operates drilling rigs that oil and gas companies charter to drill wells in deep ocean waters and shallow seas.
Why Does NE Catch Our Eye?
- Impressive 30.2% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Economies of scale give it some operating leverage when demand rises
- EBITDA margin expanded by 25.6 percentage points over the last five years as it scaled and became more efficient
Noble Corporation is trading at $45.39 per share, or 38.7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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 (+1,326% between June 2020 and June 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.
