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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.

Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. On that note, here are three market-beating stocks that deserve a spot on your list.

Griffon (GFF)

Five-Year Return: +315%

Initially in the defense industry, Griffon (NYSE:GFF) is a now diversified company specializing in home improvement, professional equipment, and building products.

Why Could GFF Be a Winner?

1. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient

2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 32.6% over the last five years outstripped its revenue performance

3. Free cash flow margin jumped by 10 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Griffon’s stock price of $68.17 implies a valuation ratio of 11.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Allison Transmission (ALSN)

Five-Year Return: +191%

Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators.

Why Do We Like ALSN?

1. Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 47.7%

2. Highly efficient business model is illustrated by its impressive 28.8% operating margin, and its operating leverage amplified its profits over the last five years

3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Allison Transmission is trading at $103.84 per share, or 10.1x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.

GE Aerospace (GE)

Five-Year Return: +355%

One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.

Why Will GE Beat the Market?

1. Market share has increased this cycle as its 20.1% annual revenue growth over the last two years was exceptional

2. Robust free cash flow margin of 16.2% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy

3. Rising returns on capital show management is finding more attractive investment opportunities