3 Stocks Poised to Outperform in 2025 and Beyond

As volatility continues to shake global markets, long-term investors are seeking stability and growth in companies with resilient fundamentals and clear competitive edges. Three stocks—Charles Schwab (SCHW), Netflix (NFLX), and Verra Mobility (VRRM)—stand out for their ability to deliver consistent results, even in challenging environments. Here’s why they’re worth considering for patient investors.

1. Charles Schwab (SCHW): The Financial Services Powerhouse

Schwab’s Q1 2025 results underscore its position as a leader in brokerage and wealth management. Analyst William Katz of TD Cowen highlighted a 20% beat on revenue and earnings, driven by strong net new assets (NNAs) and rising client cash balances. Schwab’s diversified revenue streams—from trading commissions to advisory fees—provide a cushion against market swings.

Katz’s upgraded price target to $95 reflects confidence in Schwab’s operational efficiency. The company’s focus on operating leverage (reducing costs per dollar of revenue) and its conservative balance sheet position it to capitalize on market recovery. With a P/E multiple of 12x 2026 estimates, Schwab trades at a discount to peers, offering room for valuation expansion.

2. Netflix (NFLX): Streaming Dominance Meets Innovation

Netflix’s Q1 2025 earnings surprised even the most bullish analysts. A record 6.7 million net additions—bolstered by hits like Adolescence and its ad-supported tiers—pushed subscriber growth to 25% year-over-year. Analyst Doug Anmuth of JPMorgan noted that the $7.99 ad tier is attracting budget-conscious users without cannibalizing premium subscriptions.

Anmuth’s $1,150 price target hinges on strategic price hikes (e.g., planned U.S. and U.K. rate increases) and a global content library that outspends rivals like Disney+. With low churn rates and a $30 billion content budget, Netflix is primed to maintain its streaming edge.

3. Verra Mobility (VRRM): The Hidden Gem in Toll Tech

Verra’s resilient revenue streams make it a standout in a sluggish economy. The company’s renewal of its critical NYC contract (16% of revenue) and expansion plans in states like California and Texas highlight its regulatory-protected moat. Analyst David Koning of Baird upgraded VRRM to “buy,” citing its 15x 2026 P/E as undervalued given its “high-moat” business model.

Verra’s dual focus on government traffic safety tech (speed cameras, school zone sensors) and commercial toll services for rental fleets creates a low-competition, high-renewal business. Its scalable tech platform ensures steady cash flows, even as macro headwinds pressure other sectors.

Why These Stocks Succeed Where Others Struggle

All three companies share three critical traits:
1. Consistent Growth: Schwab’s 10%+ revenue growth, Netflix’s 8%+ subscriber gains, and Verra’s 12% revenue expansion since 2023.
2. Financial Fortitude: Schwab’s $20 billion in cash, Netflix’s $6 billion in free cash flow (2024E), and Verra’s 50%+ operating margins.
3. Defensible Moats: Schwab’s brokerage-banking hybrid, Netflix’s global content library, and Verra’s government contracts all reduce competitive threats.

Conclusion: A Portfolio Built to Weather Storms

These stocks aren’t just momentum plays—they’re long-term bets on companies that dominate their markets. Schwab’s valuation discount, Netflix’s pricing power, and Verra’s recurring revenue model all suggest double-digit upside potential over the next 3–5 years.

Analyst data reinforces this:
- William Katz (SCHW analyst) has a 58% success rate with average returns of 10.2%.
- Netflix’s Doug Anmuth leads with an 18.3% average return over five years.
- Verra’s David Koning has a 55% success rate, with the stock up 25% since his upgrade.

For investors willing to look past short-term noise, these three stocks offer a rare combination of growth, stability, and scalability—making them cornerstones of a resilient portfolio in 2025 and beyond.