S&P/ASX 200 Index (ASX: XJO) shares are some of Australia's strongest businesses. They are typically a leader in their industry and have compelling competitive advantages.
The businesses I'll highlight today are all significantly lower than their recent peaks, giving investors a good opportunity to 'buy-the-dip' with these stocks.
I think the three businesses below can all beat the ASX 200 return over the next three to five years.
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Goodman Group (ASX: GMG)
Goodman is a major owner of industrial real estate in Australia and other markets. It owns warehouses and business parks, which are typically leased to blue-chip tenants, providing resilient rental income.
The ASX 200 share is tapping into the demand for data centres with a significant portion of its $12.4 billion work in progress (WIP) focused on that growth area. At 30 September 2025, data centres represented 68% of WIP. It expects to have total WIP of more than $17.5 billion by June 2026.
As the chart below shows, the Goodman share price has fallen around 20% since January 2025, making this a good time to look at the business.
Its rental characteristics remain strong, with 96.1% occupancy across its partnerships, with 4.2% like-for-like annual net property income (NPI) growth for properties in partnerships.
With forecasted operating earnings per security (EPS) growth of 9% in FY26, this looks like a good time to buy Goodman shares.
Xero Ltd (ASX: XRO)
Xero is one of the leading global cloud accounting businesses that's focused on small and medium businesses.
The ASX 200 share has captured a very large market share in its home base of New Zealand, but it has also grown impressively in Australia and the UK. Other markets include Singapore, South Africa, Canada and the US.
The business continues to grow its financials at a strong pace, yet the Xero share price is down more than 30% since June 2025, as the chart below shows.
In the FY25 result, the company reported operating revenue grew 20% to $1.2 billion, annualised monthly recurring revenue (AMRR) surged 26% to $2.6 billion, operating profit (EBITDA) climbed 21% to $378 million, net profit rose 42% to $135 million and free cash flow jumped 54% to $321 million.
What that shows to me is that Xero is very profitable and further revenue growth is likely to flow to the bottom line in a big way over the coming years. Operating leverage is a powerful force, allowing profit to rise faster than revenue growth.
Xero's subscriber base continues growing thanks to the appeal of its time-saving software for new subscribers and its high customer loyalty rate (of around 99%) each year.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Pinnacle is an investment business focused on investing in high-quality funds management businesses (affiliates).
It helps the affiliates grow by offering various behind-the-scenes services such as compliance, legal, fund distribution services and much more. This allows the fund managers to focus on investing, which is the main thing clients want to pay for.
The strong investment performance of the fund managers has meant a large majority of the funds have outperformed their respective benchmarks over the long-term. That's great for growing funds under management (FUM) organically and attracting more FUM from clients.
In the three months to September 2025, its FUM grew by another 10% (or $18 billion) with net inflows of $13.3 billion over the quarter.
Despite higher FUM, the Pinnacle share price has fallen 30% over the past 12 months, as the chart below shows.
Rising FUM means more management fees, which is a strong tailwind for the ASX 200 share's earnings and the Pinnacle share price.
