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. Taking that into account, here are three market-beating stocks that deserve a spot on your list.
Stride (LRN)
Five-Year Return: +206%
Formerly known as K12, Stride (NYSE: LRN) is an education technology company providing education solutions through digital platforms.
Why Is LRN a Top Pick?
- Market share has increased this cycle as its 12.9% annual revenue growth over the last two years was exceptional
- Free cash flow margin grew by 5 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are growing as management capitalizes on its market opportunities
Stride is trading at $87.01 per share, or 10.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
MasTec (MTZ)
Five-Year Return: +261%
Involved in the 1996 Olympic Games MasTec (NYSE: MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.
Why Should MTZ Be on Your Watchlist?
- Backlog has averaged 24.1% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Projected revenue growth of 18.2% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings per share have massively outperformed its peers over the last two years, increasing by 77.1% annually
MasTec’s stock price of $434.28 implies a valuation ratio of 47x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Trane Technologies (TT)
Five-Year Return: +162%
With low-pressure heating systems as its first product, Trane (NYSE: TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.
Why Are We Backing TT?
- Impressive 11% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share buybacks catapulted its annual earnings per share growth to 17.6%, which outperformed its revenue gains over the last two years
- Free cash flow margin expanded by 8.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $481.69 per share, Trane Technologies trades at 30.8x forward P/E. Is now the time to initiate a position? Find out 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
