Stocks that outperform the market usually share key traits such as rising sales, expanding margins, and increasing returns on capital. The select few that can do all three for many years are often the ones that make you life-changing 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 with room for further growth.
Costco (COST)
Five-Year Return: +139%
Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ: COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.
Why Is COST a Top Pick?
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 5.6% growth over the past two years
- Enormous revenue base of $275.2 billion compensates for its low gross margin and provides significant leverage in supplier negotiations
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $913.24 per share, Costco trades at 46.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
CECO Environmental (CECO)
Five-Year Return: +551%
With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ: CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.
Why Will CECO Outperform?
- Annual revenue growth of 19% over the last two years was superb and indicates its market share increased during this cycle
- Market share will likely rise over the next 12 months as its expected revenue growth of 17.9% is robust
- Adjusted operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
CECO Environmental is trading at $47.44 per share, or 38x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
FTAI Aviation (FTAI)
Five-Year Return: +656%
With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.
Why Do We Love FTAI?
- Annual revenue growth of 43.9% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 82.4% annually, topping its revenue gains
- Cash burn has decreased over the last five years, showing the company is becoming a more self-sustaining business
FTAI Aviation’s stock price of $153.38 implies a valuation ratio of 25.7x forward P/E. Is now the right time to buy? Find out in our full 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-small-cap company Exlservice (+354% 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
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