Stocks that outperform the market usually share key traits such as rising sales, expanding margins, and increasing returns on capital. The select few that can do all three for many years are often the ones that make you life-changing money.
Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Taking that into account, here are three market-beating stocks with room for further growth.
Vita Coco (COCO)
Return Since IPO: +181%
Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ:COCO) offers coconut water products that are a natural way to quench thirst.
Why Is COCO on Our Radar?
- Unit sales were phenomenal over the past two years, showing demand is robust and retailers can’t stock enough of its products
- Earnings per share grew by 133% annually over the last three years, massively outpacing its peers
- Industry-leading 33.4% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities
Vita Coco is trading at $37.98 per share, or 30.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Globalstar (GSAT)
Five-Year Return: +340%
Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ:GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach.
Why Could GSAT Be a Winner?
- Market share has increased this cycle as its 20.7% annual revenue growth over the last two years was exceptional
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 33.7% annually, topping its revenue gains
- Strong free cash flow margin of 27.9% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
Globalstar’s stock price of $24.71 implies a valuation ratio of 30.4x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Republic Bancorp (RBCAA)
Five-Year Return: +160%
With roots dating back to 1974 and operating across multiple states including Kentucky, Indiana, Florida, Ohio, and Tennessee, Republic Bancorp (NASDAQGS:RBCA.A) is a Kentucky-based financial holding company that operates a bank offering traditional banking, mortgage services, and specialized financial products.
Why Does RBCAA Stand Out?
- Market share has increased this cycle as its 10.3% annual revenue growth over the last two years was exceptional
- Differentiated product suite leads to a Strong performance of its loan book leads to a High-yielding loan book and low cost of funds lead to a best-in-class net interest margin of 5%
- Additional sales over the last two years increased its profitability as the 13.2% annual growth in its earnings per share outpaced its revenue
At $77.63 per share, Republic Bancorp trades at 1.4x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 Stocks for this week. 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 Exlservice (+354% 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