What do you need to beat the market? Higher mathematical expectancy

What do you need to beat the market?  

You need to pick stocks of companies that have a higher mathematical expectancy than that of the market, example, the S&P 500. 

Of course, this could come in many forms, for example:

- a higher earnings yield (low PE), 

- better growth prospects (high EPS growth rate), 

- higher certainty in the company’s future prospects (good quality business and management), or 

- a cheaper stock price in relation to the business’s underlying assets (undervalued stock).