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.
Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. On that note, here are three market-beating stocks that deserve a spot on your list.
Monday.com (MNDY)
Return Since IPO: +62.1%
Founded in 2014 and named after the dreaded first day of the work week, Monday.com (NASDAQ:MNDY) is a software-as-a-service platform that helps organizations plan and track work efficiently.
Why Will MNDY Outperform?
- ARR growth averaged 32.4% over the last year, showing customers are willing to take multi-year bets on its offerings
- Prominent and differentiated software results in a best-in-class gross margin of 89.5%
- Strong free cash flow margin of 30.4% enables it to reinvest or return capital consistently
Monday.com is trading at $290 per share, or 11.7x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Magnite (MGNI)
Five-Year Return: +289%
Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ:MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.
Why Are We Backing MGNI?
- Annual revenue growth of 33.3% over the past five years was outstanding, reflecting market share gains this cycle
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
- Improving returns on capital suggest its past investments are beginning to deliver value
At $24.67 per share, Magnite trades at 27.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Preferred Bank (PFBC)
Five-Year Return: +145%
Founded in 1991 with a focus on serving the Pacific Rim community in Southern California, Preferred Bank (NASDAQ:PFBC) is a commercial bank that provides banking products and services to small and mid-sized businesses, entrepreneurs, real estate developers, and high net worth individuals.
Why Could PFBC Be a Winner?
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Impressive 12.2% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
- ROE punches in at 19%, illustrating management’s expertise in identifying profitable investments
Preferred Bank’s stock price of $97.01 implies a valuation ratio of 4.4x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2024 "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 9 Market-Beating Stocks. 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
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