3 Market-Beating Stocks with Impressive Fundamentals

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.

Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Keeping that in mind, here are three market-beating stocks with room for further growth.

CECO Environmental (CECO)

Five-Year Return: +662%

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 Do We Love CECO?

1. Market share has increased this cycle as its 19.2% annual revenue growth over the last two years was exceptional
2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 23.2%
3. Adjusted operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage

CECO Environmental is trading at $62.50 per share, or 40.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Woodward (WWD)

Five-Year Return: +202%

Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ:WWD) designs, services, and manufactures energy control products and optimization solutions.

Why Are We Bullish on WWD?

1. Impressive 10.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. Earnings per share grew by 29.4% annually over the last two years and trumped its peers

Woodward’s stock price of $372.76 implies a valuation ratio of 41.8x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

HCA Healthcare (HCA)

Five-Year Return: +158%

With roots dating back to 1968 and a network spanning 20 states, HCA Healthcare (NYSE:HCA) operates a network of 190 hospitals and 150+ outpatient facilities providing a full range of medical services across the US and England.

Why Should You Buy HCA?

1. Massive revenue base of $75.6 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
2. Share buybacks catapulted its annual earnings per share growth to 21%, which outperformed its revenue gains over the last five years
3. ROIC punches in at 28.7%, illustrating management’s expertise in identifying profitable investments

At $492.48 per share, HCA Healthcare trades at 16.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.