Financial News
3 Market-Beating Stocks with Impressive Fundamentals
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.
The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. On that note, here are three market-beating stocks that could turbocharge your returns.
Nova (NVMI)
Five-Year Return: +495%
Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Why Is NVMI a Good Business?
- Annual revenue growth of 21.1% over the last two years was superb and indicates its market share increased during this cycle
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Nova is trading at $293.10 per share, or 33.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
AutoZone (AZO)
Five-Year Return: +248%
Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE: AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.
Why Do We Love AZO?
- Same-store sales growth lends it the confidence to gradually expand its store base so it can reach more customers
- Collection of products is difficult to replicate at scale and results in a best-in-class gross margin of 51.8%
- Strong free cash flow margin of 10.6% enables it to reinvest or return capital consistently
At $4,323 per share, AutoZone trades at 26.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
McKesson (MCK)
Five-Year Return: +373%
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE: MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Should You Buy MCK?
- Solid 15.3% annual revenue growth over the last two years indicates its offering’s solve complex business issues
- Dominant market position is represented by its $377.6 billion in revenue, which creates significant barriers to entry in this highly regulated industry
- Share buybacks catapulted its annual earnings per share growth to 18.3%, which outperformed its revenue gains over the last five years
McKesson’s stock price of $714 implies a valuation ratio of 18.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. 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 Comfort Systems (+782% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
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