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.
Ulta (ULTA)
Five-Year Return: +143%
Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ:ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.
Why Are We Fans of ULTA?
- Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
- ROIC punches in at 32.1%, illustrating management’s expertise in identifying profitable investments
At $518.80 per share, Ulta trades at 20.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Inter Parfums (IPAR)
Five-Year Return: +149%
With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ:IPAR) manufactures and distributes fragrances worldwide.
Why Is IPAR a Good Business?
- Annual revenue growth of 14.6% over the last three years beat the sector average and underscores the popularity of its brand
- Free cash flow margin grew by 8.7 percentage points over the last year, giving the company more chips to play with
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Inter Parfums’s stock price of $98 implies a valuation ratio of 17.7x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Ares (ARES)
Five-Year Return: +248%
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 Should You Buy ARES?
- Impressive 19.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Fee-related earnings improved by 32.8% annually over the last five years as it eliminated redundant costs
- Earnings per share grew by 17.3% annually over the last five years, comfortably beating the peer group average
Ares is trading at $149.52 per share, or 26.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 6 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-micro-cap company Tecnoglass (+1,754% 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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