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.

Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. On that note, here are three market-beating stocks with room for further growth.

Palantir (PLTR)

Return Since IPO: +1,051%

Started by Peter Thiel after seeing US defence agencies struggle in the aftermath of the 2001 terrorist attacks, Palantir (NYSE:PLTR) offers software as a service platform that helps government agencies and large enterprises use data to make better decisions.

Why Are We Bullish on PLTR?

1. Billings have averaged 38.6% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
2. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Palantir is trading at $109.33 per share, or 67x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

United Therapeutics (UTHR)

Five-Year Return: +163%

Founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension, United Therapeutics (NASDAQ:UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments.

Why Will UTHR Beat the Market?

1. Impressive 22.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Robust free cash flow margin of 36% gives it many options for capital deployment
3. Returns on capital are growing as management capitalizes on its market opportunities

United Therapeutics’s stock price of $295.02 implies a valuation ratio of 10.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Broadridge (BR)

Five-Year Return: +100%

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE:BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Why Does BR Catch Our Eye?

1. Market share has increased this cycle as its 9.1% annual revenue growth over the last five years was exceptional
2. Additional sales over the last five years increased its profitability as the 13% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin grew by 4.4 percentage points over the last five years, giving the company more chips to play with

At $233.57 per share, Broadridge trades at 26.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our 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 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 Axon (+711% five-year return). Find your next big winner with StockStory today for free.