Market-Beating Stocks Shine with Consistent Earnings Growth

The best-performing stocks on the market often share certain characteristics, including robust sales growth, increasing margins, and rising returns on capital. Long-term investors may want to consider three such stocks: EMCOR (EME), Travelers (TRV), and First BanCorp (FBP).

EMCOR has seen its five-year return skyrocket by 521% through its network of over 70 subsidiaries, providing electrical, mechanical, and building construction services. The company's revenue growth of 16.3% over the last two years indicates an increased market share during this cycle.

Travelers, with a five-year return of 133%, has been gaining traction since its inception in 1853 as a provider of commercial and personal property and casualty insurance products to businesses, government units, associations, and individuals. The company's pre-tax profits have increased over the last two years due to fixed cost leverage and efficiency improvements.

First BanCorp, with a five-year return of 101%, has been performing well since its roots in 1948 as a bank holding company providing commercial banking services across Puerto Rico, the U.S. mainland, and the Caribbean. The bank's high-yielding loan book and low cost of funds have resulted in an impressive net interest margin of 4.8%.