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 with room for further growth.
Butterfield Bank (NTB)
Five-Year Return: +78.1%
Founded in 1784 as one of the oldest banks in the Western Hemisphere, Butterfield Bank (NYSE: NTB) provides banking, wealth management, and trust services to individuals and businesses in select offshore financial centers including Bermuda, Cayman Islands, and the Channel Islands.
Why Could NTB Be a Winner?
- Projected net interest income growth of 32.8% for the next 12 months is above its five-year trend, pointing to accelerating demand
- Capital generation for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust tangible book value per share growth of 30.4%
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Butterfield Bank’s stock price of $59.34 implies a valuation ratio of 1.9x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
American Express (AXP)
Five-Year Return: +101%
Recognizable by its iconic green logo and the slogan "Don't leave home without it," American Express (NYSE: AXP) is a global payments company that issues credit and charge cards, processes merchant transactions, and offers travel and lifestyle benefits to consumers and businesses.
Why Does AXP Stand Out?
- 13.2% annual revenue growth over the last five years surpassed the sector average as its products resonated with customers
- Earnings per share grew by 13.9% annually over the last five years, above the peer group average
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
American Express is trading at $333.49 per share, or 18x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Tidewater (TDW)
Five-Year Return: +706%
Operating one of the world's largest fleets with over 200 vessels spanning 30 countries, Tidewater (NYSE: TDW) operates offshore service vessels that transport supplies, equipment, and workers to oil rigs and platforms.
Why Will TDW Outperform?
- Annual revenue growth of 30.8% over the last five years was superb and indicates its market share increased during this cycle
- EBITDA margin expanded by 28.4 percentage points over the last five years as it scaled and became more efficient
- Robust free cash flow margin of 14.7% gives it many options for capital deployment
At $92.75 per share, Tidewater trades at 17.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
