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.
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 with room for further growth.
CrowdStrike (CRWD)
Five-Year Return: +221%
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ:CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
Why Will CRWD Beat the Market?
- Billings growth has averaged 24.9% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Forecasted revenue growth of 22.7% for the next 12 months indicates its momentum over the last two years is sustainable
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
CrowdStrike’s stock price of $211.76 implies a valuation ratio of 34.6x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Fastenal (FAST)
Five-Year Return: +85.1%
Founded in 1967, Fastenal (NASDAQ:FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.
Why Should FAST Be on Your Watchlist?
- Offerings are mission-critical for businesses and lead to a best-in-class gross margin of 45.4%
- Healthy operating margin of 20.4% shows it’s a well-run company with efficient processes
- Free cash flow margin expanded by 5.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Fastenal is trading at $50.87 per share, or 37.4x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Littelfuse (LFUS)
Five-Year Return: +74.5%
The developer of the first blade-type automotive fuse, Littelfuse (NASDAQ:LFUS) provides electrical protection and control components for the automotive, industrial, electronics, and telecommunications industries.
Why Do We Like LFUS?
- Superior product capabilities and pricing power lead to a stellar gross margin of 38.5%
- Earnings per share have massively outperformed its peers over the last two years, increasing by 22.8% annually
- Strong free cash flow margin of 14.5% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $459.79 per share, Littelfuse trades at 24.1x 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 (+1,460% 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.