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. On that note, here are three market-beating stocks that deserve a spot on your list.
Keysight (KEYS)
Five-Year Return: +78.4%
Spun off from Hewlett-Packard in 2014, Keysight (NYSE:KEYS) offers electronic measurement products for use in various sectors.
Why Will KEYS Beat the Market?
- Annual revenue growth of 14.7% over the past two years was outstanding, reflecting market share gains this cycle
- Share repurchases over the last two years enabled its annual earnings per share growth of 23.2% to outpace its revenue gains
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
Keysight is trading at $311.60 per share, or 23.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stifel (SF)
Five-Year Return: +74.3%
Tracing its roots back to 1890 when the firm was established in St. Louis, Stifel Financial (NYSE:SF) is a financial services firm that provides wealth management, investment banking, and institutional brokerage services to individuals, corporations, and institutions.
Why Are We Fans of SF?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 13.4% annual sales growth over the last two years
- Share buybacks catapulted its annual earnings per share growth to 30.8%, which outperformed its revenue gains over the last two years
- ROE punches in at 13.1%, illustrating management’s expertise in identifying profitable investments
At $80.76 per share, Stifel trades at 11.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Motorola Solutions (MSI)
Five-Year Return: +99.6%
Born from the company that invented the first portable handheld police radio in 1940, Motorola Solutions (NYSE:MSI) provides mission-critical communications, video security, and command center software solutions for public safety agencies and enterprise customers.
Why Should You Buy MSI?
- Impressive 9.2% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Adjusted operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Strong free cash flow margin of 18.9% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
Motorola Solutions’s stock price of $481.66 implies a valuation ratio of 26.6x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.