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.
It's clear there's a strong connection between sustained earnings growth and hall-of-fame returns. On that note, here are three market-beating stocks with room for further growth.
Return Since IPO: +456%
Co-founded by Adam Foroughi, who was frustrated with not being able to find a good solution to market his own dating app, AppLovin (NASDAQ:APP) is both a mobile game studio and provider of marketing and monetization tools for mobile app developers.
Why Does APP Catch Our Eye?
At $362.80 per share, AppLovin trades at 20.4x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it's free.
Five-Year Return: +313%
The developer of the world's first frost-proof water meter in 1905, Badger Meter (NYSE:BMI) provides water control and measure equipment to various industries.
Why Are We Backing BMI?
Badger Meter's stock price of $247.75 implies a valuation ratio of 52.6x forward P/E. Is now the right time to buy? Find out in our full research report, it's free.
Five-Year Return: +191%
Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE:CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.