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3 Market-Beating Stocks with Promising Prospects

FLS Cover Image

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. Keeping that in mind, here are three market-beating stocks that could turbocharge your returns.

Flowserve (FLS)

Five-Year Return: +98.4%

Manufacturing the largest pump ever built for nuclear power generation, Flowserve (NYSE: FLS) manufactures and sells flow control equipment for various industries.

Why Could FLS Be a Winner?

  1. Operating margin expanded by 2.5 percentage points over the last five years as it scaled and became more efficient
  2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 23.6% annually, topping its revenue gains
  3. Free cash flow margin increased by 5 percentage points over the last five years, giving the company more capital to invest or return to shareholders

At $73.58 per share, Flowserve trades at 18.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Super Micro (SMCI)

Five-Year Return: +1,059%

Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ: SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications.

Why Is SMCI a Good Business?

  1. Impressive 68.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Dominant market position is represented by its $21.05 billion in revenue and gives it fixed cost leverage when sales grow
  3. Free cash flow margin is now positive, showing the company has crossed a key inflection point

Super Micro’s stock price of $34.69 implies a valuation ratio of 15.1x 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 .

Cintas (CTAS)

Five-Year Return: +113%

Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ: CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.

Why Are We Backing CTAS?

  1. Offerings and unique value proposition resonate with customers, as seen in its above-market 8.5% annual sales growth over the last five years
  2. Share repurchases over the last five years enabled its annual earnings per share growth of 15.9% to outpace its revenue gains
  3. Robust free cash flow margin of 16.2% gives it many options for capital deployment

Cintas is trading at $185.75 per share, or 36.8x 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 6 Stocks for this week. 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

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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