3 Stocks That Outperform the Market Worth Watching
Stocks that perform exceptionally well often have strong sales growth, improving margins, and increasing returns on capital consistently. These stocks can become renowned in the investing world for sustaining this trifecta over time.
In the long run, earnings growth correlates with the success of top-performing stocks. Considering this, here are three stocks that have a history of beating the market and should be considered for your investment portfolio.
1. PACCAR (PCAR)
PACCAR, a company with a history spanning over a century, designs and produces commercial trucks for the transportation industry.
Reasons to Favor PCAR: - Improvement of 6.3 percentage points in operating margin in the past five years showcases its efficient scalability. - A leading return on capital of 30.7% indicates the management's proficiency in identifying high-return investments, with increasing returns suggesting strategic and lucrative choices. - Current trading price of PCAR is $89.75 per share, with a forward price-to-earnings ratio of 11.9x. A detailed research report on whether it's a good time to invest is available for free.
2. Nextracker (NXT)
Nextracker, a provider of solar tracker systems, has contributed to significant solar projects like the Noor Abu Dhabi solar farm.
Why NXT is Promising: - A consistent backlog growth of 56.1% over the past two years indicates a strong pipeline of orders, ensuring future revenue support. - Exceptional performance in sales in the last two years, with a 131% annual growth in earnings per share surpassing revenue gains. - The free cash flow margin increased by 13.1 percentage points over the last five years, providing the company with more financial flexibility.
NXT is priced at $38.80 per share, with a forward price-to-earnings ratio of 12x. A comprehensive research report is available for free.
3. KBR (KBR)
KBR, recognized for projects like the construction of Guantanamo Bay, offers professional services and technologies in engineering, construction, and government sectors.
Reasons to be Bullish on KBR: