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.
It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. Taking that into account, here are three market-beating stocks with room for further growth.
Netflix (NFLX)
Five-Year Return: +133%
Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.
Why Is NFLX a Good Business?
- Has the opportunity to boost monetization through new features and premium offerings as its global streaming paid memberships have grown by 13.9% annually over the last two years
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin jumped by 19.9 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Netflix is trading at $1,171 per share, or 33.8x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.
Primerica (PRI)
Five-Year Return: +146%
With a sales force of over 140,000 licensed representatives operating on an independent contractor model, Primerica (NYSE: PRI) provides term life insurance, investment products, and other financial services to middle-income households in the United States and Canada.
Why Is PRI Interesting?
- Pre-tax profits increased over the last four years as the company gained some leverage on its fixed costs and became more efficient
- Share repurchases over the last five years enabled its annual earnings per share growth of 18.2% to outpace its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Primerica’s stock price of $276.75 implies a valuation ratio of 3.8x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
Berkshire Hathaway (BRK.A)
Five-Year Return: +135%
Led by legendary investor Warren Buffett since 1965, transforming it from a struggling textile manufacturer into a corporate giant, Berkshire Hathaway (NYSE: BRK.A) is a diversified holding company that owns businesses across insurance, railroads, utilities, manufacturing, retail, and services sectors.
Why Should BRK.A Be on Your Watchlist?
- Share repurchases over the last five years enabled its annual earnings per share growth of 20.3% to outpace its revenue gains
- Annual tangible book value per share growth of 15.9% over the past five years was outstanding, reflecting strong capital accumulation this cycle
- ROE punches in at 13.2%, illustrating management’s expertise in identifying profitable investments
At $745,906 per share, Berkshire Hathaway trades at 22.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
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 Strong Momentum Stocks for this week. 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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