3 Market-Beating Stocks with Solid Fundamentals

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 that could turbocharge your returns.

CrowdStrike (CRWD)

Five-Year Return: +507%

Founded by George Kurtz, the former CTO of the antivirus company McAfee, CrowdStrike (NASDAQ:CRWD) provides cybersecurity software that protects companies from breaches and helps them detect and respond to cyber attacks.

Why Are We Bullish on CRWD?

1. Ability to secure long-term commitments with customers is evident in its 29% ARR growth over the last year
2. Projected revenue growth of 21.1% for the next 12 months suggests its momentum from the last three years will persist
3. Strong free cash flow margin of 27% enables it to reinvest or return capital consistently

At $425.70 per share, CrowdStrike trades at 21.9x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Ingersoll Rand (IR)

Five-Year Return: +156%

Started with the invention of the steam drill, Ingersoll Rand (NYSE:IR) provides mission-critical air, gas, liquid, and solid flow creation solutions.

Why Do We Like IR?

1. Annual revenue growth of 10.6% over the last two years was superb and indicates its market share increased during this cycle
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 18% over the last two years outstripped its revenue performance
3. Robust free cash flow margin of 15.4% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute

Ingersoll Rand’s stock price of $74.98 implies a valuation ratio of 21.8x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free.

SPX Technologies (SPXC)

Five-Year Return: +245%

SPX Technologies (NYSE:SPXC) is an industrial conglomerate catering to the energy, manufacturing, automotive, and aerospace sectors.

Why Will SPXC Outperform?

1. Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 9.8% over the past two years
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 34.3% annually, topping its revenue gains
3. Free cash flow margin increased by 5.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders

SPX Technologies is trading at $132.61 per share, or 21.9x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.