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.
Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Taking that into account, here are three market-beating stocks with room for further growth.
Cloudflare (NET)
Five-Year Return: +148%
With a massive network spanning more than 310 cities in over 120 countries, Cloudflare (NYSE:NET) provides a global network that delivers security, performance and reliability services to protect websites, applications, and corporate networks.
What Makes NET Stand Out?
- Average billings growth of 34.7% over the last year enhances its liquidity and shows there is steady demand for its products
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
At $326.25 per share, Cloudflare trades at 35.6x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
Federal Signal (FSS)
Five-Year Return: +193%
Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE:FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies.
Why Are We Bullish on FSS?
- Market share has increased this cycle as its 16.3% annual revenue growth over the last two years was exceptional
- Additional sales over the last two years increased its profitability as the 27% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 12.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Federal Signal’s stock price of $115.36 implies a valuation ratio of 20.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Gorman-Rupp (GRC)
Five-Year Return: +95.8%
Powering fluid dynamics since 1934, Gorman-Rupp (NYSE:GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems.
Why Is GRC a Top Pick?
- Impressive 14.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 28% over the last two years outstripped its revenue performance
- Free cash flow margin grew by 12.1 percentage points over the last five years, giving the company more chips to play with
Gorman-Rupp is trading at $72.24 per share, or 24x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.