3 Market-Beating Stocks for Long-Term Investors

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. On that note, here are three market-beating stocks that could turbocharge your returns.

AMD (AMD)

Five-Year Return: +353%

Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.

Why Could AMD Be a Winner?

1. Annual revenue growth of 25.4% over the past five years was outstanding, reflecting market share gains this cycle

2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 66.3%

3. Earnings per share grew by 22.6% annually over the last five years and easily exceeded the peer group average

At $527.36 per share, AMD trades at 50.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

United Therapeutics (UTHR)

Five-Year Return: +186%

Founded by a mother seeking treatment for her daughter’s pulmonary arterial hypertension, United Therapeutics (NASDAQ:UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments.

Why Are We Fans of UTHR?

1. Solid 14.7% annual revenue growth over the last five years indicates its offerings solve complex business issues

2. UTHR is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

3. Industry-leading 29.1% return on capital demonstrates management’s skill in finding high-return investments, and its rising returns show it’s making even more lucrative bets

United Therapeutics is trading at $533.12 per share, or 18.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Allstate (ALL)

Five-Year Return: +88.9%

Born from a Sears, Roebuck & Co. initiative during the Great Depression with its famous “You’re in good hands” slogan, Allstate (NYSE:ALL) is one of America’s largest personal property and casualty insurers, offering protection for autos, homes, and personal property.

Why Do We Like ALL?

1. Pre-tax profits and efficiency rose over the last two years as it benefited from some fixed cost leverage

2. Share buybacks catapulted its annual earnings per share growth to 83.7%, which outperformed its revenue gains over the last two years

3. Balance sheet strength has increased this cycle as its 40.9% annual book value per share growth over the last two years was exceptional