3 Market-Beating Stocks on Our Watchlist

AAPL Cover Image

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.

The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. Keeping that in mind, here are three market-beating stocks that could turbocharge your returns.

Apple (AAPL)

Five-Year Return: +129%

Creator of the iPhone and App Store, Apple (NASDAQ: AAPL) is a legendary developer of consumer electronics and software.

Why Do We Like AAPL?

  1. Apple's revenue base is so large because nearly everyone in the U.S. has an iPhone, but this is a double-edged sword. Growth must now come from upgrades, a harder pitch that has resulted in sluggish top-line performance recently.
  2. Still, Apple's devices have endured for decades, speaking to its brand, design ethos, and technological chops. Its success is rare in the world of consumer electronics, which is fraught because of commoditization, competition, and obsolescence risk.
  3. The company may not have the best gross margin because of its hardware orientation, but it still manages to produce elite operating and free cash flow margins. This shows it doesn’t need over-the-top marketing campaigns to convince people to buy its products.

Apple is trading at $213.95 per share, or 28.5x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.

Coherent (COHR)

Five-Year Return: +115%

Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE: COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.

Why Could COHR Be a Winner?

  1. Annual revenue growth of 22.9% over the last five years was superb and indicates its market share increased during this cycle
  2. Economies of scale give it some operating leverage when demand rises
  3. Sales outlook for the upcoming 12 months calls for 11% growth, an acceleration from its two-year trend

At $100.55 per share, Coherent trades at 24.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Amphenol (APH)

Five-Year Return: +306%

With over 90 years of connecting the world's technologies, Amphenol (NYSE: APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.

Why Are We Bullish on APH?

  1. Annual revenue growth of 22.4% over the last two years was superb and indicates its market share increased during this cycle
  2. Unparalleled revenue scale of $18.82 billion gives it an edge in distribution
  3. Incremental sales significantly boosted profitability as its annual earnings per share growth of 29.1% over the last two years outstripped its revenue performance

Amphenol’s stock price of $105.70 implies a valuation ratio of 37.3x 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

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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.

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