3 Market-Beating Stocks for Long-Term Investors
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. Taking that into account, here are three market-beating stocks with room for further growth.
EMCOR (EME)
Five-Year Return: +521%
Through its network of over 70 subsidiaries, EMCOR (NYSE:EME) provides electrical, mechanical, and building construction and services
Why Should You Buy EME?
- Annual revenue growth of 16.3% over the last two years was superb and indicates its market share increased during this cycle
- Share buybacks catapulted its annual earnings per share growth to 35.7%, which outperformed its revenue gains over the last two years
- Returns on capital are climbing as management makes more lucrative bets
EMCOR’s stock price of $748.79 implies a valuation ratio of 21.6x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Travelers (TRV)
Five-Year Return: +133%
Tracing its roots back to 1853 when it insured travelers against accidents on steamboats and railroads, Travelers (NYSE:TRV) provides a wide range of commercial and personal property and casualty insurance products to businesses, government units, associations, and individuals.
Why Does TRV Catch Our Eye?
- Pre-tax profits increased over the last two years as the company gained some leverage on its fixed costs and became more efficient
- Share repurchases over the last two years enabled its annual earnings per share growth of 51.4% to outpace its revenue gains
- Expected book value per share growth of 21.2% for the next year suggests its capital position will strengthen considerably
Travelers is trading at $363.44 per share, or 2.1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
First BanCorp (FBP)
Five-Year Return: +101%
Tracing its roots back to 1948 in San Juan, First BanCorp (NYSE:FBP) is a bank holding company that provides commercial banking, consumer financing, mortgage services, and insurance products across Puerto Rico, the U.S. mainland, and the Caribbean.
Why Could FBP Be a Winner?
- High-yielding loan book and low cost of funds result in a best-in-class net interest margin of 4.8%
- Efficiency ratio improvement of 12.5 percentage points over the last five years demonstrates its ability to scale effectively
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
At $26.82 per share, First BanCorp trades at 2x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.