3 Market-Beating Stocks to Keep an Eye On
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. On that note, here are three market-beating stocks that could turbocharge your returns.
Standex (SXI)
Five-Year Return: +213%
Holding over 500 patents globally, Standex (NYSE:SXI) is a manufacturer and distributor of industrial components for various sectors.
Why Should SXI Be on Your Watchlist?
- Impressive 11.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Offerings are difficult to replicate at scale and result in a stellar gross margin of 39.3%
- Excellent operating margin of 15.5% highlights the efficiency of its business model, and its operating leverage amplified its profits over the last five years
At $310.69 per share, Standex trades at 31.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Trane Technologies (TT)
Five-Year Return: +131%
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 Is TT a Top Pick?
- 10.4% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
- Share repurchases over the last five years enabled its annual earnings per share growth of 19.2% to outpace its revenue gains
- Free cash flow margin increased by 10.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Trane Technologies is trading at $454.03 per share, or 27.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Progressive (PGR)
Five-Year Return: +128%
Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE:PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.
Why Will PGR Beat the Market?
- Annual revenue growth of 15.9% over the last two years was superb and indicates its market share increased during this cycle
- Net premiums earned surged by 14.9% annually over the past two years, reflecting strong market share gains this cycle
- ROE punches in at 24.7%, illustrating management’s expertise in identifying profitable investments
Progressive’s stock price of $220.28 implies a valuation ratio of 3.6x forward P/B. Is now a good time to buy? 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 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.