3 Market-Beating Stocks to Own for Decades

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. Keeping that in mind, here are three market-beating stocks that deserve a spot on your list.

Powell (POWL)

Five-Year Return: +2,588%

Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE:POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.

Why Are We Bullish on POWL?

1. Market share has increased this cycle as its 15.4% annual revenue growth over the last two years was exceptional
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 36.7% over the last two years outstripped its revenue performance
3. Free cash flow margin jumped by 22.8 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Powell is trading at $292.15 per share, or 50.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Howmet (HWM)

Five-Year Return: +763%

Inventing the first forged aluminum truck wheel, Howmet (NYSE:HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.

Why Is HWM a Top Pick?

1. Market share has increased this cycle as its 12.3% annual revenue growth over the last five years was exceptional
2. Share repurchases over the last two years enabled its annual earnings per share growth of 43.7% to outpace its revenue gains
3. Free cash flow margin expanded by 13.2 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Howmet’s stock price of $286.37 implies a valuation ratio of 52.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Dell (DELL)

Five-Year Return: +334%

Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE:DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.

Why Do We Love DELL?

1. Annual revenue growth of 22.2% over the past two years was outstanding, reflecting market share gains this cycle
2. Share buybacks catapulted its annual earnings per share growth to 38.8%, which outperformed its revenue gains over the last two years
3. Returns on capital are growing as management capitalizes on its market opportunities

At $428.15 per share, Dell trades at 22x forward P/E. Is now the time to initiate a position? See for yourself in our full 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 (+1,326% 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.