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 that could turbocharge your returns.
OSI Systems (OSIS)
Five-Year Return: +194%
With security scanners deployed at airports and borders worldwide and patient monitors used in hospitals across the globe, OSI Systems (NASDAQ:OSIS) designs and manufactures specialized electronic systems for security screening, patient monitoring, and optoelectronic applications.
Why Are We Backing OSIS?
- Market share has increased this cycle as its 16.6% annual revenue growth over the last two years was exceptional
- Additional sales over the last two years increased its profitability as the 23.4% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 2.4 percentage points over the last five years, giving the company more chips to play with
OSI Systems is trading at $274.59 per share, or 27x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
VSE Corporation (VSEC)
Five-Year Return: +411%
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 Interesting?
- Annual revenue growth of 18% over the past two years was outstanding, reflecting market share gains this cycle
- Projected revenue growth of 12.4% for the next 12 months suggests its momentum from the last two years will persist
- Operating margin improvement of 4.3 percentage points over the last five years demonstrates its ability to scale efficiently
VSE Corporation’s stock price of $206.09 implies a valuation ratio of 52.7x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Piper Sandler (PIPR)
Five-Year Return: +264%
Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE:PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.
Why Do We Love PIPR?
- Annual revenue growth of 17.4% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 35.2% over the last two years outstripped its revenue performance
- Annual tangible book value per share growth of 12.8% over the past two years was outstanding, reflecting strong capital accumulation this cycle
At $360.34 per share, Piper Sandler trades at 21.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.