The best-performing stocks have strong sales growth, growing margins, and growing capital gains, and those that can maintain this trifecta year after year often become legends of the financial world.
The bottom line is that over time, earnings growth has been accompanied by big winners. With that in mind, here are three market-beating stocks with room for further growth.
Five Year Return: +164%
Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ:GOOGL) is the parent company of the Google Search engine name, Google Cloud Platform, and YouTube.
Why Should You Buy GOOGL?
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Google’s alphabetical search ranks among the best businesses ever. This is reflected in its strong long-term revenue growth and high performance.
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The company’s profit margins have gotten higher and higher over time, speaking to its huge gains and strong performance not only in its core Search business but also in Google Cloud Platform and YouTube.
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Revenue growth and increased operating margins are key factors for strong EPS growth. Google owns these, and when it includes its share acquisition, you can see why EPS has exploded over the long term.
Alphabet’s stock price of $272.31 suggests a 23.9x forward earnings multiple. Is now the right time to buy? Find out in our full research report, it’s free.
Five Year Return: +190%
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for the military, law enforcement and civilians.
Why are we Bullish on AXON?
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ARR trends over the past two years show that it maintains a steady flow of long-term contracts that contribute positively to its revenue generation.
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Operating profits and profitability have increased over the past five years as they have benefited from fixed costs
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Each salary has increased by 28.8% annually in the past two years and has surpassed his peers.
At $413.36 per share, Axon trades at 55.4x forward P/E. Is it time to start work? See for yourself in our in-depth research report, free of charge.
Five Year Return: +175%
With security scanners deployed at airports and borders around the world and patient monitors used in hospitals around the world, OSI Systems (NASDAQ:OSIS) designs and manufactures specialty electronics for security screening, patient monitoring and optoelectronic applications.
Why Do We Love OSIS?
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Market share has increased this cycle as its annual growth of 14.7% over the past two years was exceptional.
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Performance over the past five years has been boosted by the share price, which has seen earnings per share grow faster than its revenue.
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Free cash flow has increased 4.5 percent over the past five years, giving the company more money to invest or return to shareholders.
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