3 Market-Beating Stocks Worth Investigating

Stocks that outperform the market usually share key traits such as rising sales, expanding margins, and increasing returns on capital. The select few that can do all three for many years are often the ones that make you life-changing money.

The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. Keeping that in mind, here are three market-beating stocks with room for further growth.

CECO Environmental (CECO)

Five-Year Return: +451%

With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ:CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.

Why Is CECO a Good Business?

1. Annual revenue growth of 18.6% over the last two years was superb and indicates its market share increased during this cycle
2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 23%
3. Adjusted operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient

CECO Environmental is trading at $46.69 per share, or 36.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Watts Water Technologies (WTS)

Five-Year Return: +195%

Founded in 1874, Watts Water (NYSE:WTS) specializes in manufacturing water products and systems for residential, commercial, and industrial applications globally.

Why Could WTS Be a Winner?

1. Superior product capabilities and pricing power result in a best-in-class gross margin of 45.5%
2. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
3. Share buybacks catapulted its annual earnings per share growth to 20.7%, which outperformed its revenue gains over the last five years

At $282.70 per share, Watts Water Technologies trades at 29.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Interactive Brokers (IBKR)

Five-Year Return: +373%

Founded in 1977 and known for its sophisticated trading technology and global reach across 150+ exchanges in 34 countries, Interactive Brokers (NASDAQ:IBKR) is a global electronic broker that provides low-cost trading and investment services across stocks, options, futures, forex, bonds, and other financial instruments.

Why Should You Buy IBKR?

1. Annual revenue growth of 22.7% over the last five years was superb and indicates its market share increased during this cycle
2. Additional sales over the last five years increased its profitability as the 27.4% annual growth in its earnings per share outpaced its revenue
3. Balance sheet strength has increased this cycle as its 20.2% annual tangible book value per share growth over the last two years was exceptional

Interactive Brokers’s stock price of $62.65 implies a valuation ratio of 31.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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