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.

Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Keeping that in mind, here are three market-beating stocks that deserve a spot on your list.

Texas Roadhouse (TXRH)

Five-Year Return: +159%

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ: TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.

Why Are We Backing TXRH?

1. Rapid rollout of new restaurants to capitalize on market opportunities makes sense given its strong same-store sales performance
2. Customers are lining up to eat at its restaurants as the company’s same-store sales growth averaged 7.5% over the past two years
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

Texas Roadhouse is trading at $166.99 per share, or 23x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Vertiv (VRT)

Five-Year Return: +688%

Formerly part of Emerson Electric, Vertiv (NYSE: VRT) manufactures and services infrastructure technology products for data centers and communication networks.

Why Are We Bullish on VRT?

1. Average organic revenue growth of 19.6% over the past two years demonstrates its ability to expand independently without relying on acquisitions
2. Free cash flow margin jumped by 5.6 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
3. Returns on capital are growing as management capitalizes on its market opportunities

Vertiv’s stock price of $138.54 implies a valuation ratio of 34.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

VSE Corporation (VSEC)

Five-Year Return: +461%

With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ: VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.

Why Is VSEC on Our Radar?

1. Market share has increased this cycle as its 22.5% annual revenue growth over the last two years was exceptional
2. Operating margin expanded by 5.4 percentage points over the last five years as it scaled and became more efficient
3. Additional sales over the last five years increased its profitability as the 14.2% annual growth in its earnings per share outpaced its revenue

At $167 per share, VSE Corporation trades at 42.4x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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-micro-cap company Tecnoglass (+1,754% 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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