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3 Market-Beating Stocks with Solid Fundamentals

PRDO Cover Image

The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital, and those that can maintain this trifecta year in and year out often become the legends of the investing world.

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.

Perdoceo Education (PRDO)

Five-Year Return: +161%

Formerly known as Career Education Corporation, Perdoceo Education (NASDAQ: PRDO) is an educational services company that specializes in postsecondary education.

Why Is PRDO on Our Radar?

  1. Healthy operating margin of 24.2% shows it’s a well-run company with efficient processes
  2. PRDO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
  3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

At $31.23 per share, Perdoceo Education trades at 39.6x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.

Carlisle (CSL)

Five-Year Return: +119%

Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE: CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.

Why Could CSL Be a Winner?

  1. Highly efficient business model is illustrated by its impressive 19.5% operating margin, and its operating leverage amplified its profits over the last five years
  2. Share repurchases over the last five years enabled its annual earnings per share growth of 24.7% to outpace its revenue gains
  3. Robust free cash flow margin of 15.3% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business

Carlisle’s stock price of $315.89 implies a valuation ratio of 16x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Boston Scientific (BSX)

Five-Year Return: +176%

Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.

Why Is BSX Interesting?

  1. Core business can prosper without any help from acquisitions as its organic revenue growth averaged 16.2% over the past two years
  2. Additional sales over the last five years increased its profitability as the 19.9% annual growth in its earnings per share outpaced its revenue
  3. Free cash flow margin expanded by 5.5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Boston Scientific is trading at $104.82 per share, or 31.4x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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 Tecnoglass (+1,754% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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