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3 Market-Beating Stocks with Impressive Fundamentals

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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.

It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. On that note, here are three market-beating stocks that could turbocharge your returns.

Stride (LRN)

Five-Year Return: +434%

Formerly known as K12, Stride (NYSE: LRN) is an education technology company providing education solutions through digital platforms.

Why Is LRN a Top Pick?

  1. Number of enrollments has surged, pointing to elevated demand
  2. Free cash flow margin increased by 6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
  3. Returns on capital are growing as management capitalizes on its market opportunities

Stride’s stock price of $144.36 implies a valuation ratio of 19.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

CSW (CSWI)

Five-Year Return: +286%

With over two centuries of combined operations manufacturing and supplying, CSW (NASDAQ: CSWI) offers special chemicals, coatings, sealants, and lubricants for various industries.

Why Are We Backing CSWI?

  1. Annual revenue growth of 17.9% over the last five years was superb and indicates its market share increased during this cycle
  2. Highly efficient business model is illustrated by its impressive 18.8% operating margin, and its rise over the last five years was fueled by some leverage on its fixed costs
  3. Incremental sales significantly boosted profitability as its annual earnings per share growth of 17.6% over the last two years outstripped its revenue performance

At $304.19 per share, CSW trades at 31.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

AAON (AAON)

Five-Year Return: +147%

Backed by two million square feet of lab testing space, AAON (NASDAQ: AAON) makes heating, ventilation, and air conditioning equipment for different types of buildings.

Why Is AAON a Good Business?

  1. Market share has increased this cycle as its 20.7% annual revenue growth over the last five years was exceptional
  2. Earnings per share grew by 18.2% annually over the last five years, massively outpacing its peers
  3. ROIC punches in at 20.7%, illustrating management’s expertise in identifying profitable investments

AAON is trading at $96.04 per share, or 39.5x forward P/E. Is now the right time to buy? See for yourself in our full 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 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.

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