3 Market-Beating Stocks for Long-Term Investors
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.
The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. On that note, here are three market-beating stocks that deserve a spot on your list.
Vertex Pharmaceuticals (VRTX)
Five-Year Return: +185%
Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ:VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management.
Why Should VRTX Be on Your Watchlist?
- 13.5% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
- Adjusted operating profits and efficiency rose over the last two years as it benefited from some fixed cost leverage
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Vertex Pharmaceuticals’s stock price of $545 implies a valuation ratio of 31.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
McKesson (MCK)
Five-Year Return: +348%
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE:MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Is MCK a Top Pick?
- Solid 14.5% annual revenue growth over the last two years indicates its offerings solve complex business issues
- Massive revenue base of $411 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 15.3% exceeded its revenue gains over the last five years
At $923.64 per share, McKesson trades at 19.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
StoneX (SNEX)
Five-Year Return: +417%
Originally known as INTL FCStone until its 2020 rebranding, StoneX Group (NASDAQ:SNEX) provides a global financial services network connecting companies, traders, and investors to markets through clearing, execution, and advisory services.
Why Do We Love SNEX?
- Annual revenue growth of 36% over the past two years was outstanding, reflecting market share gains this cycle
- Additional sales over the last two years increased its profitability as the 40% annual growth in its earnings per share outpaced its revenue
- Annual tangible book value per share growth of 17.1% over the last five years was superb and indicates its capital strength increased during this cycle
StoneX is trading at $69.84 per share, or 2.8x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.