In this article, we will take a look at stocks that outperform the broader market.
Imagine choosing a group of stocks that not only weathered the market’s storm but also outpaced its peers. Clearly, a win. Such is the case of these 15 stocks that delivered returns greater than what the market had to offer over the last three years. Before we get down to those top-tier winners, let’s discuss what the broader market index actually is.
This may not be something new to seasoned investors. As one of the most widely known benchmarks of the United States, the S&P Index is considered the best gauge of notable American equities’ performance and the health of the economy, in general. Covering around 80% of market capitalization, the S&P is a float-weighted index, which means that the market capitalizations of all the companies included are adjusted by the volume of shares available for trading publicly. Since it’s an index, you can’t just invest in it directly, but rather you can invest in one of the many funds that use it as a benchmark and measure the overall performance.
As a research report by Alex Frino and David R. Gallagher stated:
“Over long horizons, index funds tracking the index consistently outperform the majority of actively managed funds, reflecting the efficiency of broad-market exposure.”
This highlights that S&P index funds generally deliver better results than most actively managed funds.
If we look at the 5-year trend for the broader market, the index witnessed a growth of around 105%. While this may be a decent growth rate, it’s not something truly amazing. The stocks in the index tumbled in 2022, mainly owing to the FED’s shift in monetary policy, the Russia-Ukraine war, and lingering post-COVID supply chain disruptions. Even after this period, the trendline is not something that would break records or catch an eye. In a span of 3 years, the stocks have witnessed a growth of 32%, which is just decent in this high-growth world.
From energy, agriculture, and finance to gold mining, automotive, technology, and construction industries, the companies have showcased strong returns in a short period. This is a result of favorable macroeconomic policies for these markets, particularly with Trump back in office. The stocks we have favored are the ones featuring good performance in the past, as well as the ones surrounding optimism in the future. Thus, we can safely say that it’s still not too late to invest in these stocks. As the elders used to say, “The best time to plant a tree was 20 years ago. The second-best time is now.”
Stocks chart
Our Methodology
We have taken a list of 15 companies from Finviz and Yahoo Finance that have witnessed a growth rate of more than 32%, witnessed by the S&P index funds, over three years. These companies then have been listed in descending order, from the highest growth to the lowest growth. The trend line has been captured from Google’s latest stock prices, with respect to the returns of the respective shares.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. Valmont Industries, Inc. (NYSE:VMI)
3-Year Return as of the Close of March 12: 43%
Valmont Industries, Inc. (NYSE:VMI), headquartered in Omaha, Nebraska, manufactures products for the infrastructure and agriculture sectors. The company aims to modernize essential infrastructure and enhance agricultural productivity by adopting innovative systems. With two main segments, namely Infrastructure and Agriculture, Valmont serves 7 markets across six continents and 21 different countries. The company’s dedication towards pricing discipline and cost structure improvements seems to be really paying off.
This mid-cap stock witnessed a share price increase of around 49% in just a year. With a 2.4% dip in sales reported in 2024, the company proved that robust performance doesn’t always derive from sales growth. Analysts are optimistic about Valmont Industries, Inc. (NYSE:VMI), expecting a surge in EPS and net sales from the prior year by 2.7% and 5.6%, respectively.
There are many reasons to believe that the company will witness a demand hike. The demand for power is anticipated to increase, if not remain consistent, due to electrification, industrialization, and the rise of data centers. Thus, this trend of utility companies fueling their infrastructure investments is going to last a long time. We can safely say that the future of Valmont Industries, Inc. (NYSE:VMI) will also be bright.
Additionally, Valmont Industries, Inc. (NYSE:VMI) has yet to reap the full benefits of its Bipartisan Infrastructure Deal. A deal that brought $110 billion in funding for repairing roads, bridges, and rails across the United States, carries the strength to drive the demand for infrastructure products, boosting VMI’s success for years to come.
14. GoDaddy Inc. (NYSE:GDDY)
3-Year Return as of the Close of March 12: 123%
GoDaddy Inc. (NYSE:GDDY) is an Arizona-based services platform that claims to do more than just sell domain names. The company’s extensive portfolio includes domain registration, website building, hosting, digital marketing and e-commerce solutions, websites + marketing, managed WordPress, and GoDaddy Airo, an AI-powered business solution. This allows the company to target a varied clientele, mainly small businesses, individuals, organizations, developers, designers, and domain investors across multiple industries. With a presence in the UK, Canada, India, and Australia, it helps accelerate the growth of millions.
In the past three years, GoDaddy Inc. (NYSE:GDDY) has spurred as high as 120% returns, with growth largely reflected in 2024. Surpassing their Investor Day targets, the company was able to drive top-line bookings of over 9% and elevated bottom-line normalized EBITDA margins to 31% in the past year. That being said, the company made waves with its annual bookings, recorded at $5 billion. To the company’s surprise, pricing and bundling delivered substantial returns throughout the year, resulting in a 21% applications and commerce bookings expansion.
The management has a constructive strategy for 2025. All their efforts will surround presence products and targeted audiences across Applications and Commerce, and Core Platform segments within the hosting business. Simultaneously, they will work towards the development of this approach for 2026 and beyond.
The future direction of GoDaddy Inc. (NYSE:GDDY) seems to be all figured out. We can also expect the company to focus on technology and AI, particularly within the GoDaddy Airo domain. This will not only improve the cost structures but also enhance the overall customer experience. With Airo increasingly gaining traction, we believe it to be the growth catalyst driving customer lifetime value.
Based on the 12-month forecasts by 15 Wall Street analysts in the last 3 months, the stock will witness an average of 30% upside, with the price standing at $224.08. Surely, the company could be a top pick for investors.
13. Fiserv, Inc. (NYSE:FI)
3-Year Return as of the Close of March 12: 124%
Fiserv, Inc. (NYSE:FI) is a Wisconsin-based payment and financial services technology provider. With a global presence across North America, Europe, the Middle East, Africa, Latin America, and Asia-Pacific, Fiserv considers itself on a mission to drive the flow of money and information to shape the world. The company offers various products and services, including payment and mobile banking systems, account processing systems, financial solutions, network services, and lending and risk management solutions.
Clover is considered the main asset of Fiserv, Inc. (NYSE:FI). This growth driver witnessed a 29% revenue surge in FY24, and with a positive macro environment, the figure is expected to rise even more in the current year. Bob Hau, Chief Financial Officer of Fiserv, made the following comment:
“Drilling down by segment, for Merchant Solutions, we see organic revenue growth of 12% to 15% in 2025, driven mostly by strong growth in Clover, as we reach our $3.5 billion revenue target, including an increase in vast penetration to the 25% outlook. Our ability to achieve these goals is supported by opportunities we advanced in 2024 with five new hardware rollouts and three new geographics.”
Another development is the company’s partnership with ADP to build a Small Business Management Platform, thus allowing micro-enterprises to manage their inflows and outflows easily. According to the agreement, the companies will form an integrated solution that combines the expertise of ADP’s small business payroll and human resources solution, RUN Powered by ADP, and Fiserv’s small business management platform, Clover. What makes this even more interesting is that Clover will also be offered through ADP’s distribution channel, which could enable Fiserv, Inc. (NYSE:FI) to reach a wider audience.
Based on the 12-month price forecasts by 25 Wall Street analysts over three months, the average price is $253.91, with a high forecast of $278 and a low forecast of $220. Additionally, analysts have a consensus “Strong Buy” rating on the stock. With historic returns higher than the peers, and the optimism surrounding the future of Fiserv, Inc. (NYSE:FI), we can safely consider it a bull.
12. Harmony Gold Mining Company Limited (NYSE:HMY)
3-Year Return as of the Close of March 12: 128%
Harmony Gold Mining Company Limited (NYSE:HMY) is a South Africa-based, as the name suggests, gold mining and exploration company. With a focus on exploration, extraction, and processing of mineral properties, the company mainly explores gold, uranium, silver, and copper deposits. The mining powerhouse has eight underground operations in the Witwatersrand Basin, an open-pit mine on the Kraaipan Greenstone Belt, and multiple surface source operations in South Africa. Incorporated in 1950, the company is dedicated to delivering safe performance and consistent production.
One of the largest gold mining companies recently delivered outstanding interim results, with increased production and reduced costs. However, the main contributor was a surge in gold prices. Harmony Gold Mining Company Limited (NYSE:HMY) concluded December 2024 with a net profit of $441M, compared to a net profit of $318M in the same quarter in 2023, highlighting a 23% year-over-year rise in average gold price.
The gold giant considers the acquisitions of Mponeng, Moab Khotsong, and Mine Waste Solutions, initiated in 2020, transformative for the company. With a more positive approach, the company is planning to invest in these high-yielding assets to extract as many benefits from these as it can. Since Phase II of Kareerand tailings storage facility expansion at Mine Waste Solutions is expected to be completed by the year’s end, we have something to look forward to.
This, along with the projects at Moab Khotsong and Mponeng, is anticipated to add a total of 5.2 million ounces of gold reserves and deliver an average recovered grade of about nine grams per tonne. Additionally, the much-awaited Eva Copper initiative is also progressing well, with only the final amendments now left. The project is expected to produce between 55,000 to 60,000 tonnes of copper per annum, along with 14,000 ounces of gold as a byproduct over its useful life of 15 years.
Analysts at CNN Business expect Harmony Gold Mining Company Limited (NYSE:HMY) to outperform the market over the next 12 months. The company has yielded around 90% more returns than the broader market in the last three years, so we can accept the analysts’ claim, particularly when management seems clear about how it plans to proceed.
11. Group 1 Automotive, Inc. (NYSE:GPI)
3-Year Return as of the Close of March 12: 129%
Group 1 Automotive, Inc. (NYSE:GPI) is a Houston-based, Fortune 250 automotive retailer. Since 1997, the company has become a leading operator in the automotive retail industry. The giant offers new and used vehicles, related vehicle financing, service and insurance contracts, automotive maintenance and repair services, and vehicle parts. With operations in the UK and USA, it owns and operates around 258 automotive dealerships, 330 franchises, and 39 collision centers. The company distributes by selling directly through its dealerships, via AcceleRide, and through wholesaling at third-party auctions.
Group 1 Automotive, Inc. (NYSE:GPI) has returned 129% in the past three years, handily outperforming the broader market. The expansion history of the company is nothing short of exceptional. In the first nine months of 2024 alone, the giant carried acquisitions that contributed an annualized revenue of about $3.9 billion. In general, the company has acquired a total of 93 franchises that, collectively, are responsible for approximately $4.97 billion in annualized revenue.
The future of Group 1 Automotive, Inc. (NYSE:GPI) looks equally bright. The company has plans to focus on acquisition-led growth in economically valuable markets, leveraging local scale for a competitive edge, and optimizing operations to enhance efficiency. Their efforts will mainly surround investments in electric vehicles (EVs), the market of which is anticipated to show a steady annual growth rate (CAGR 2025-29) of 6.94%. Additionally, the company will undergo major facility and technology upgrades to remain competitive.
Analysts are highly optimistic about Group 1 Automotive, Inc. (NYSE:GPI). While the average price target stands at $506.71, with prices as high as $550 and as low as $460, a value which is still higher than the current price, GPI can be termed as the next valuable stock.
10. Granite Construction Incorporated (NYSE:GVA)
3-Year Return as of the Close of March 12: 130%
Granite Construction Incorporated (NYSE:GVA) is a diversified construction and construction materials company. Incepted in 1992 and headquartered in California, the company has two main segments: Construction, and Materials. The construction powerhouse also offers its services in the transportation, water infrastructure, and mineral exploration markets. Recognized as one of the World’s Most Ethical Companies for eleven consecutive years, Granite is leading the market, excelling in safety, quality, and sustainability.
In a recent development, Granite Construction Incorporated (NYSE:GVA) announced that it has been awarded a $66 million contract by the California Department of Transportation for a project aimed at restructuring the Caldwell Avenue interchange located in California. The project will likely begin in August 2025 and be completed in Q2, 2027.
Granite Construction Incorporated (NYSE:GVA) is fully capitalizing on its M&A strategic initiatives. Moreover, experts have been added to the corporate development teams as the management explores M&A opportunities. With a focus on centralized materials leadership, strategic CapEx investment, and M&A, the management has a positive outlook for the next three years, targeting a 12% to 14% consolidated 2027 adjusted EBITDA margin.
Not only the management, but the analysts too are extremely optimistic. Analysts have predicted a high price of $119 and a low price of $80, with an average of $103. Keeping in consideration the current 13.33% ROE of Granite Construction Incorporated (NYSE:GVA), analysts expect it to maintain the current level of growth, if not higher. While the ROE is slightly lower than the industry average of 18%, the higher than peers five-year net income growth of 49% makes a decent case for GVA.
9. Archrock, Inc. (NYSE:AROC)
3-Year Return as of the Close of March 12: 165%
Archrock, Inc. (NYSE:AROC) is a global energy infrastructure company, based in Houston, USA. With an emphasis on midstream natural gas compression, the company has two main segments: Contract Operations and Aftermarket Services. The product offerings of this mid-cap enterprise include natural gas compression services to energy sector customers and aftermarket services to customers who own compression equipment. As more and more companies outsource this natural gas compression need, Archrock is all set to meet this rising demand.
Just recently, the company announced its strategic partnership and distribution agreement with Coldstream Energy, enabling Archrock, Inc. (NYSE:AROC) to capitalize on the growing demand for MaCH4 solutions. Although the EPS growth rate of AROC has stood at 6.4%, the anticipated growth rate is what keeps the investors hooked. The company’s EPS is expected to grow by 37.5%, surpassing the industry average of 26.3%. Even if we consider the cash flow of the company, the year-over-year cash flow growth rate is over three times higher than the industry average.
In Archrock, Inc. (NYSE:AROC)’s recent financials, we could see the impact of the TOPS acquisition. With an EPS of $0.34, up from $0.22, the company truly benefited from scaling operations. Additionally, the company is investing to grow its fleet by 5% in 2025.
In this “America First” Trump regime, favorable energy policies—such as boosting oil and gas production on the state lands, promoting energy exploration and production on the Outer Continental Shelf (OCS), and adopting policies that lift restrictions on oil and gas leasing—the AROC stock is already up 479% in the past five years. The expansion plans, along with a favorable macro environment, give us a good reason to believe that Archrock, Inc. (NYSE:AROC) is all set to outshine its peers.
8. Enova International, Inc. (NYSE:ENVA)
3-Year Return as of the Close of March 12: 168%
Enova International, Inc. (NYSE:ENVA), headquartered in Illinois and founded in 2003, is a global technology and analytics company offering financial services, particularly across the United States and Brazil. By serving the segment underserved by traditional banks, the company aims to become a leader in the digital financial technology market. The core offerings of Enova include installment loans, credit accounts, CSO programs, bank programs, and money transfer services. CashNetUSA, Headway Capital, and Simplic are some of the names the brand uses to market its financing products, each with its offerings.
During Biden’s administration, the company faced 8 times more significant regulations compared to Trump’s prior regime, and now with Trump returning to office, we believe the heat will cool down for businesses, such as Enova International, Inc. (NYSE:ENVA).
In the previous financial deregulation era, key policies like easing CFPB restrictions on small-dollar lending, cutting corporate tax by 14%, and encouraging a business-friendly environment, bolstered expansion while reducing compliance costs for Enova International, Inc. (NYSE:ENVA). The overall result of which was growth.
We can expect the same pattern for the company in Trump’s second term. Enova International, Inc. (NYSE:ENVA) is all set to capitalize on regulatory tailwinds. While reduced compliance costs will improve margins, potential corporate tax reductions from 21% to 15% would further strengthen the earnings.
The management expects total revenue for the first quarter of FY25 to remain slightly higher sequentially, showcasing a 20% YoY growth, and adjusted EPS to surge by 25%. Enova International, Inc. (NYSE:ENVA) remains optimistic about its position to achieve robust growth and risk management strategies amidst macroeconomic shifts. That being said, Enova investors hope the history repeats itself.
7. Argan, Inc. (NYSE:AGX)
3-Year Return as of the Close of March 12: 182%
Argan, Inc. (NYSE:AGX) is a Maryland, USA-based company specializing in power generation, industrial, and infrastructure sectors. With a commitment to offering sustained value, the company provides an array of construction and related services to the power industry through its subsidiaries, particularly Gemma Power Systems, SMC Infrastructure Solutions, and Atlantic Projects Company. Owing to its strategic growth and operational efficiency, the stock has seen a remarkable 130% jump in its price in just one year.
We consider diversification to be the core competency of this small-cap company. From the construction of energy facilities to the provision of industrial construction services and telecommunication infrastructures, Argan, Inc. (NYSE:AGX) accounts for growth avenues in a range of markets. By allowing its subsidiaries to operate autonomously, the holding company ensures strong synergies between activities. This enables the giant to generate margins that surpass the industry average. For instance, compared to the 32% return by the broader market in three years, AGX delivered a solid 182% return.
The future of Argan, Inc. (NYSE:AGX) seems to be even more positive, with around a 4% surge expected in the operating margins within the next two years. According to analysts offering 12-month price targets, the price of AGX will climb to $150, representing a change of 23%. This makes it a stock worth the watch.
6. GE Aerospace (NYSE:GE)
3-Year Return as of the Close of March 12: 239%
GE Aerospace (NYSE:GE) is a global leader in jet and turbo engines, as well as integrated systems for commercial, military, and general aviation aircraft. Inventing the future of flight, GE Aerospace is headquartered in Ohio, USA. The company operates through two segments, Commercial Engines and Services, and Defense and Propulsion Technologies. While the Commercial Engines and Services segment deals in the designing, manufacturing, and repairing of jet engines, the latter provides power systems for the government and other institutions.
Just recently, the company achieved a significant milestone by getting its Catalyst turboprop engine approved by the US Federal Aviation Administration (FAA). As easy as it may sound, the test engine requires the completion of more than 80,000 hours of operation demonstrating its performance targets to get the certification.
GE Aerospace (NYSE:GE) was rated “Buy” by analysts at Redburn Atlantic, a financial services firm. They believe the company is poised to capitalize on surging demand for air travel worldwide.
While the future looks promising, the past hasn’t been disappointing either. In a span of five years, the stock has surged by over 380%. Previously, the stock has benefitted from strong fundamentals in the aviation market, a series of divestments, and restructuring. All praise to CEO Jack Welch, who took over a debt-ridden, bloated, and inefficient jet engine maker and transformed it into what it is today.
With a new Trump-led regime, business-friendly policies, both corporate and personal tax cuts, and a growing aviation market are much anticipated. Having said that, GE Aerospace (NYSE:GE) is nothing short of an ideal stock for investors valuing long-term growth.
5. Howmet Aerospace Inc. (NYSE:HWM)
3-Year Return as of the Close of March 12: 279%
Howmet Aerospace Inc. (NYSE:HWM) is a U.S.-based provider of innovative engineering solutions for the aerospace and transportation industries. With four reportable segments including jet engine components, aerospace fastening systems, forged wheels, and airframe structural components, the company seeks to provide solutions by offering differentiated products. Founded in 1888, the company is among the renowned employers of engineers, serving the aerospace and commercial transportation industries across the United States, Japan, France, Germany, China, and the globe.
The potential for the aerospace and transportation market is not something that’s hidden. On that note, the management is pretty optimistic about the industry it operates in, with the global aerospace market expected to grow at a CAGR of 7.2% between 2024 and 2033. This is supported by the management’s guidance, with a sales estimate of 8% and EBITDA growth of 11% in 2025 alone.
What has previously contributed to growth is its strong financial health, low debt, and focus on shareholder returns. A testament to Howmet Aerospace Inc. (NYSE:HWM)’s resilience is that despite headwinds from the challenges at Boeing, the company’s earnings grew. The company proved that strengthened margins are not always a consequence of improved sales, which actually dipped by 12% in line with weak Commercial Transportation in the last quarter of 2024, but rather a result of cost management, higher productivity, and headcount reductions. And maybe this is how it outperformed the broader market.
Howmet Aerospace Inc. (NYSE:HWM)’s future outlook is simple. With Boeing signaling that it has a straightforward path towards a production rate of 38 airplanes per month, up from 25 planes per month, we have a bull case for HWM. Not only this, Airbus and COMAC are expected to increase production in 2025.
4. Brinker International, Inc. (NYSE:EAT)
3-Year Return as of the Close of March 12: 313%
Brinker International, Inc. (NYSE:EAT) is a global powerhouse for casual dining. The company that owns, operates, and franchises the Chili’s Grill & Bar and Maggiano’s Little Italy restaurant names, has mainly two segments: Chili’s and Maggiano’s. With operations in more than 25 countries, it has indeed come a long way while staying true to its roots. The brand also owns It’s Just Wings, a virtual fast-food restaurant chain selling chicken wings, curly fries, and more. The dining giant considers making people feel special as its passion.
With a market capitalization of $6.67 billion, the EAT stock has witnessed a fantastic growth of about 735% over the last five years. This surge is considered to be Brinker’s big break as the company experienced a downturn in unit performance with EBITDA dripping from $500K to $350K after early 2000s growth.
Everyone knows the casual restaurant industry is one of the most competitive industries. And to survive in such a market, it is important to identify your unique spot. At an investor day event in 2023, the management announced to revisit its strategy, with plans to revitalize the brand with four pillars. We believe 2024 was the year when we could actually see the impact of the focus and execution of this strategy, with a solid 175% jump in returns in the past 12 months.
The forecasts for FY25 show a somewhat similar picture. Analysts expect Brinker International, Inc. (NYSE:EAT) to deliver a consolidated EBITDA of $700 million, which outlines a 19% surge in revenue per unit. For 2026, the estimates show a more subtle gain, with a 4% rise in per-unit sales and 8% EBITDA growth.
As long as Brinker International, Inc. (NYSE:EAT) remains consistent in its efforts to boost revenues through diverse sales-building initiatives, including solidifying its market position, improving food presentation and menu, optimizing food preparation, running successful advertising campaigns, and maintaining market relevance, we have a good reason to believe that this trend will last long.
3. Banco Macro S.A. (NYSE:BMA)
3-Year Return as of the Close of March 12: 447%
Banco Macro S.A. (NYSE:BMA), an Argentina-based company, provides conventional banking products and services to both companies and individuals. This multiservice bank also offers services as trustee agent and director and manager of mutual funds, along with stock exchange services, through its subsidiaries. With a market capitalization of $5.95 billion, the company’s core offerings include retail and corporate banking products and services, transaction services, and corporate lending products.
This universal bank, ranked as the first highest compared to its peers, has shown quite a performance when we consider the bank’s past net interest margin figures. This not only underscores BMA’s expertise in maintaining a combination of higher margin and higher risk products but also its skill in stabilizing commercial and real estate lending.
In light of this, Banco Macro S.A. (NYSE:BMA) has recently witnessed a bullish trend in earnings forecast revisions. Analysts have remained optimistic, assigning the stock a “Buy” rating. While the average price target stands at $138.94, compared to the current price of $81, the target is set as high as $160.70. With over 282% return in five years, the stock has been increasingly bought by institutional investors like D.A. Davidson & CO., Truist Financial Corp, Nkcfo LLC, and Burns Matteson Capital Management LLC among others.
Management, too, maintains a confident stance on Banco Macro S.A. (NYSE:BMA)’s future. The expectation of 30% real growth in 2025 stems from the increase in deposits by the private sector and the expansion of the monetary base. With not much regulation change expected this year, the Central Bank is making efforts to maintain efficiency and solvency. Thus, this stock, with an ROE of 10.67%, demands close attention from investors.
2. Hims & Hers Health, Inc. (NYSE:HIMS)
3-Year Return as of the Close of March 12: 656%
Hims & Hers Health, Inc. (NYSE:HIMS) is a leading telehealth platform that connects consumers to professional healthcare providers in the USA, UK, and internationally. On a mission to normalize health and wellness challenges, and innovate solutions, the company offers a range of curated prescription and nonprescription health and wellness products and services via its website and mobile application. This California-based company also provides medical consultation and post-consultation support services to enhance the overall well-being of all.
Considering the company’s Q4 financials, HIMS bid farewell to 2024 with 2.2M subscribers, reflecting a year-over-year surge of 45%. On a quarter basis, it welcomed 182K net new subscribers, which ranks as the second highest in a single quarter. The management attributes this growth to the expansion of personalized treatments, from unique form factors and multi-condition treatments to tailored dosages. While the addition of subscribers strengthens the platform in terms of brand loyalty, data insights, product innovation, and clinical experience, it also tells the future.
Hims & Hers Health, Inc. (NYSE:HIMS) recently launched a weight-loss portfolio, which was met with huge success. The offerings, which include oral weight loss and compounded GLP-1 injections, not only increased revenues but also secured the company’s position in entering new specialties and scale. That being said, management expects the revenue through its weight loss segment to be at least $725 million in 2025.
Looking ahead, the company has projected revenues between $2.3 billion and $2.4 billion for the current year, with adjusted EBITDA to expand from $177 million to a range of $270-320 million in 2025. Delivering a return of over 676% in the last three years, Hims & Hers Health, Inc. (NYSE:HIMS) has outperformed the health sector.
1. Celestica Inc. (NYSE:CLS)
3-Year Return as of the Close of March 12: 669%
Celestica Inc. (NYSE:CLS) is a Canada-based supply chain solutions provider across North America, Europe, and Asia. The company has mainly two segments: Advanced Technology Solutions (ATS), and Connectivity & Cloud Solutions (CCS). Incorporated in 1994, Celestica serves a wide clientele including original equipment manufacturers, cloud-based service providers, and companies in aerospace and defense, health, capital equipment, industrial, communication, and enterprise markets. From manufacturing and supply chain services to hardware platform solutions, it has a diverse product portfolio. The company, with a market capitalization of $10.475 billion, is considered an under-the-radar pick.
Celestica Inc. (NYSE:CLS) is one of those stocks that perform quietly but yield solid results. The stock rose by 669% compared to the 32% growth of the market in three years. The growth of its CSS segment, with a contribution of US$6.49b (67% of total revenue), is attributed to the success of the company.
In just one year, Celestica Inc. (NYSE:CLS) has delivered a return of around 92%. This electronics manufacturing services giant is expected to achieve substantial double-digit sales and earnings growth in 2025 and 2026.
There are many reasons to be positive about the stock. One of them is the industry Celestica Inc. (NYSE:CLS) operates in. The company’s CCS segment is immensely successful in harnessing the rise of global data center spending. Industry giants have set aside more than $300 billion to boost their AI infrastructures. This reflects a significant surge in contrast to last year’s accumulated AI CAPEX spending of $246 billion.
Overall, Celestica Inc. (NYSE:CLS) ranks first on our list of the stocks that outperformed the market in the last three years. While we acknowledge the potential for CLS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CLS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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