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.
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 deserve a spot on your list.
CECO Environmental (CECO)
Five-Year Return: +1,052%
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 Are We Bullish on CECO?
- Annual revenue growth of 19.9% over the last two years was superb and indicates its market share increased during this cycle
- Projected revenue growth of 83% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 23.6% exceeded its revenue gains over the last two years
CECO Environmental is trading at $82 per share, or 39.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Gorman-Rupp (GRC)
Five-Year Return: +143%
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 Good Business?
- Impressive 14.9% 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 30% over the last two years outstripped its revenue performance
- Free cash flow margin grew by 6.2 percentage points over the last five years, giving the company more chips to play with
At $84.09 per share, Gorman-Rupp trades at 32x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Gulfport Energy (GPOR)
Five-Year Return: +169%
With drilling operations focused on the Utica Shale in eastern Ohio and the SCOOP play in central Oklahoma, Gulfport Energy (NYSE: GPOR) drills for and produces natural gas from underground shale formations.
Why Could GPOR Be a Winner?
- Annual revenue growth of 9.2% over the past ten years was outstanding, reflecting market share gains this cycle
- Attractive asset base leads to wonderful unit economics and a premier gross margin of 69.6%
- Robust free cash flow margin of 18.1% gives it many options for capital deployment
Gulfport Energy’s stock price of $170 implies a valuation ratio of 6.3x forward P/E. Is now the time to initiate a position? See for yourself in our full 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 (+1,326% 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.
