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3 Market-Beating Stocks with Solid Fundamentals

CACI 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.

It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. Keeping that in mind, here are three market-beating stocks with room for further growth.

CACI (CACI)

Five-Year Return: +149%

Founded to commercialize SIMSCRIPT, CACI International (NYSE: CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts.

Why Does CACI Stand Out?

  1. Demand is greater than supply as the company’s 11.3% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
  2. Average operating margin of 8.6% reduces the likelihood of a crisis
  3. Share buybacks catapulted its annual earnings per share growth to 20.6%, which outperformed its revenue gains over the last two years

At $599.90 per share, CACI trades at 20.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Bloom Energy (BE)

Five-Year Return: +263%

Working in stealth mode for eight years, Bloom Energy (NYSE: BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.

Why Should You Buy BE?

  1. Annual revenue growth of 19.1% over the last five years was superb and indicates its market share increased during this cycle
  2. Free cash flow turned positive over the last five years, showing the company is at an important crossroads
  3. Returns on capital are increasing as management’s prior bets are starting to bear fruit

Bloom Energy is trading at $90.94 per share, or 110.8x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

EXL (EXLS)

Five-Year Return: +137%

Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ: EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.

Why Are We Bullish on EXLS?

  1. Market share has increased this cycle as its 16% annual revenue growth over the last five years was exceptional
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 24.4% exceeded its revenue gains over the last five years
  3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

EXL’s stock price of $39.39 implies a valuation ratio of 18.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out 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 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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