3 Market-Beating Stocks with Solid Fundamentals

The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital, and those that can maintain this trifecta year in and year out often become the legends of the investing world.

It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. Keeping that in mind, here are three market-beating stocks with room for further growth.

Urban Outfitters (URBN)

Five-Year Return: +99.5%

Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ:URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion.

Why Does URBN Stand Out?

1. Offensive push to build new stores and attack its untapped market opportunities is backed by its same-store sales growth
2. Same-store sales growth averaged 4.8% over the past two years, showing it’s bringing new and repeat shoppers into its stores
3. Share repurchases over the last three years enabled its annual earnings per share growth of 42.4% to outpace its revenue gains

Urban Outfitters is trading at $74.83 per share, or 11.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Gilead Sciences (GILD)

Five-Year Return: +93.5%

From its groundbreaking work in developing the first single-tablet regimens for HIV treatment, Gilead Sciences (NASDAQ:GILD) develops and markets innovative medicines for life-threatening diseases including HIV, viral hepatitis, COVID-19, and cancer.

Why Do We Like GILD?

1. Economies of scale give it more fixed cost leverage than its smaller competitors
2. Adjusted operating profits increased over the last two years as the company gained some leverage on its fixed costs and became more efficient
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Gilead Sciences’s stock price of $132.37 implies a valuation ratio of 5.6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

California Resources (CRC)

Five-Year Return: +95%

Operating some of California's most productive oil fields including Elk Hills and Belridge, California Resources (NYSE:CRC) explores for and produces crude oil, natural gas, and natural gas liquids from fields across California.

Why Are We Positive on CRC?

1. Impressive 17.3% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Superiority of its unit economics is reflected in its premier gross margin of 57.2%
3. Strong free cash flow margin of 12.9% enables it to reinvest or return capital consistently

At $52.22 per share, California Resources trades at 10.3x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is 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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.