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 that deserve a spot on your list.
Crane (CR)
Five-Year Return: +139%
Based in Connecticut, Crane (NYSE:CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.
Why Does CR Stand Out?
- Market share is on track to rise over the next 12 months as its 24.5% projected revenue growth implies demand will accelerate from its two-year trend
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 18.9% over the last two years outstripped its revenue performance
- Improving returns on capital reflect management’s ability to monetize investments
Crane is trading at $200.53 per share, or 30x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Reddit (RDDT)
Return Since IPO: +177%
Founded in 2005 by two University of Virginia roommates, Reddit (NYSE:RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.
Why Is RDDT a Top Pick?
- Domestic Daily Active Visitors are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Grip over its ecosystem is highlighted by its ability to grow engagement while increasing the average revenue per user by 45.1% annually
- RDDT is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
Reddit’s stock price of $139.91 implies a valuation ratio of 18.2x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Ares (ARES)
Five-Year Return: +154%
With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE:ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.
Why Are We Backing ARES?
- Market share has increased this cycle as its 21.4% annual revenue growth over the last five years was exceptional
- Earnings per share grew by 20.7% annually over the last five years, comfortably beating the peer group average
At $133.83 per share, Ares trades at 20.6x forward P/E. 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
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.