3 Market-Beating Stocks with Solid Fundamentals

Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns, and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.

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

Vita Coco (COCO)

Return Since IPO: +292%

Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ:COCO) offers coconut water products that are a natural way to quench thirst.

Why Do We Watch COCO?

1. Unit sales were phenomenal over the past two years, showing demand is robust and retailers can’t stock enough of its products
2. Earnings growth has trumped its peers over the last three years as its EPS has compounded at 89.3% annually
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its rising returns show it’s making even more lucrative bets

Vita Coco’s stock price of $53 implies a valuation ratio of 36.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Badger Meter (BMI)

Five-Year Return: +98.6%

The developer of the world’s first frost-proof water meter in 1905, Badger Meter (NYSE:BMI) provides water control and measure equipment to various industries.

Why Are We Backing BMI?

1. Impressive 16.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 27.3% annually, topping its revenue gains
3. Strong free cash flow margin of 15.5% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy

At $181.71 per share, Badger Meter trades at 34.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Installed Building Products (IBP)

Five-Year Return: +144%

Founded in 1977, Installed Building Products (NYSE:IBP) is a company specializing in the installation of insulation, waterproofing, and other complementary building products for residential and commercial construction.

Why Are We Positive On IBP?

1. Annual revenue growth of 13% over the last five years was superb and indicates its market share increased during this cycle
2. Share repurchases over the last five years enabled its annual earnings per share growth of 22.4% to outpace its revenue gains
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its rising returns show it’s making even more lucrative bets

Installed Building Products is trading at $267.16 per share, or 24.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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.