ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

3 Market-Beating Stocks with Solid Fundamentals

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

PWR 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. Taking that into account, here are three market-beating stocks that deserve a spot on your list.

Quanta (PWR)

Five-Year Return: +544%

A construction engineering services company, Quanta (NYSE: PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.

Why Is PWR a Top Pick?

  1. Demand is greater than supply as the company’s 18% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
  2. Market share will likely rise over the next 12 months as its expected revenue growth of 17.7% is robust
  3. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 22.4% annually

At $603.30 per share, Quanta trades at 44.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Coherent (COHR)

Five-Year Return: +358%

Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE: COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.

Why Is COHR on Our Radar?

  1. Impressive 16.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 24.7%
  3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 69.9% annually

Coherent’s stock price of $347.05 implies a valuation ratio of 51.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

McKesson (MCK)

Five-Year Return: +345%

With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE: MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.

Why Will MCK Outperform?

  1. Offerings and unique value proposition resonate with customers, as seen in its above-market 14.9% annual sales growth over the last two years
  2. Massive revenue base of $398 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
  3. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

McKesson is trading at $866.50 per share, or 20.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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.

Report this content

If you believe this article contains misleading, harmful, or spam content, please let us know.

Report this article

Recent Quotes

View More
Symbol Price Change (%)
AMZN  249.91
+1.63 (0.66%)
AAPL  266.17
-6.88 (-2.52%)
AMD  284.49
+9.54 (3.47%)
BAC  53.48
-0.47 (-0.87%)
GOOG  330.47
-4.93 (-1.47%)
META  668.84
-2.07 (-0.31%)
MSFT  424.16
+6.09 (1.46%)
NVDA  199.88
-2.18 (-1.08%)
ORCL  181.17
+3.59 (2.02%)
TSLA  386.42
-6.08 (-1.55%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.