Prediction: These 2 Stocks Will Outperform the Market Through 2030

Equity markets can move every which way from one day to the next. The more we extend our horizon, the more likely it is that stocks will provide juicy returns. Investors can cash in by putting their money in exchange-traded funds (ETFs) that track the performance of indexes like the S&P 500.

However, it's possible to earn even better returns by investing in companies that can beat the market. Though it can be challenging to find such corporations, let's consider two excellent candidates: Amgen (NASDAQ: AMGN) and Intuitive Surgical (NASDAQ: ISRG).

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1. Amgen

Leading drugmaker Amgen could have several growth drivers through the end of the decade. The company's lineup features key products such as Tezspire, an asthma treatment, and Tepezza, a medicine for thyroid eye disease (TED). Tezspire is still undergoing several clinical trials and should earn label expansions. Tepezza remains the only treatment for TED approved in the U.S., and Amgen has also been launching it in other countries.

These two products only scratch the surface of Amgen's deep lineup of approved drugs, which should allow the biotech to grow its revenue and earnings at a good clip through the next few years. Last year, Amgen's revenue grew by 19% year over year to $33.4 billion. Though that was because of an acquisition, the company's top line also increased by a solid 7% year over year organically.

Beyond its lineup, Amgen's pipeline also looks promising. The company is looking to make waves in the fast-growing weight loss market with MariTide, its leading candidate in this field. Though Amgen's prospects in the anti-obesity space have garnered much of the attention lately, it does have exciting candidates in other areas. It recently reported strong phase 3 results for an investigational eczema treatment, rocatinlimab. A strong lineup and pipeline are essential assets for the long-term performance of drugmakers.

In addition, Amgen is an excellent dividend stock. The forward yield is currently about 3%, higher than the S&P 500's average of 1.3%. Amgen has increased its payouts by 201% in the past 10 years, and its strong returns will look even better for those who reinvest the dividend. That's one more reason the biotech can produce market-beating returns through the end of the decade.

2. Intuitive Surgical

Intuitive Surgical has been an industry leader in robotic-assisted surgery (RAS) for over two decades, thanks to its da Vinci surgical system. Last year, the U.S. Food and Drug Administration cleared the fifth generation of this innovative device, and it's already generating strong demand. In the fourth quarter, 174 of the 493 da Vinci systems that Intuitive sold were of this latest generation.

The da Vinci 5 is attracting attention because of several improvements, including greater precision, greater efficiency, and 10,000 times the computing power of its predecessor. Another is the nifty Force Feedback feature, technology that helps surgeons better gauge the amount of pressure they're applying to patients' bodies and make adjustments as needed to avoid unnecessary tissue trauma.

This new addition to Intuitive's portfolio strengthens a business that's already performing well, and should continue to do so in the next five years (and beyond). In the fourth quarter, revenue increased by 25% year over year to $2.41 billion. Adjusted earnings per share were $2.21, compared to $1.60 in the year-ago period.

Intuitive should maintain this momentum for a while, because its procedure volume has typically increased over time. The company has treated 16 million patients with its da Vinci systems, including 10 million in the past five years alone (the da Vinci system was first approved in 2000). Systems procedure volume has increased at a compound annual growth rate of 17% over the past five years.

With the new addition of the da Vinci 5 and the features it offers, things could get even better; more procedures mean more revenue for the company. So expect Intuitive Surgical to continue performing as it has in the past, and to deliver market-beating returns through 2030.

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*Stock Advisor returns as of March 18, 2025

Prosper Junior Bakiny has positions in Intuitive Surgical. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool recommends Amgen. The Motley Fool has a disclosure policy.