Market-Beating Stocks with Exciting Potential

Investors seeking market-beating stocks may want to consider Astronics (ATRO), Amgen (AMGN), and Ares Management (ARES). These companies have consistently increased their sales, margins, or returns on capital over the past five years.

Astronics has seen a 16.5% annual revenue growth rate over the past five years, while its free cash flow margin expanded by 10.3 percentage points. The company's improving returns on capital suggest that its investments are beginning to deliver value.

Amgen, founded in 1980, is a biotechnology company that discovers, develops, and manufactures innovative medicines. Its economies of scale give it more fixed cost leverage than its smaller competitors, while impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends.

Ares Management has seen 24.3% annual revenue growth over the last two years and is trading at a forward P/E ratio of 21.8x.