3 Market-Beating Stocks with Solid Fundamentals

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. Keeping that in mind, here are three market-beating stocks that could turbocharge your returns.

CrowdStrike (CRWD)

Five-Year Return: +507%

Founded by George Kurtz, the former CTO of the antivirus company McAfee, CrowdStrike (NASDAQ:CRWD) provides cybersecurity software that protects companies from breaches and helps them detect and respond to cyber attacks.

Why Are We Bullish on CRWD?

  1. Ability to secure long-term commitments with customers is evident in its 29% ARR growth over the last year

  2. Projected revenue growth of 21.1% for the next 12 months suggests its momentum from the last three years will persist

  3. Strong free cash flow margin of 27% enables it to reinvest or return capital consistently

At $425.70 per share, CrowdStrike trades at 21.9x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free .

Ingersoll Rand (IR)

Five-Year Return: +156%

Started with the invention of the steam drill, Ingersoll Rand (NYSE:IR) provides mission-critical air, gas, liquid, and solid flow creation solutions.

Why Do We Like IR?

  1. Annual revenue growth of 10.6% over the last two years was superb and indicates its market share increased during this cycle

  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 18% over the last two years outstripped its revenue performance

  3. Robust free cash flow margin of 15.4% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute

Ingersoll Rand’s stock price of $74.98 implies a valuation ratio of 21.8x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free .

SPX Technologies (SPXC)

Five-Year Return: +245%

SPX Technologies (NYSE:SPXC) is an industrial conglomerate catering to the energy, manufacturing, automotive, and aerospace sectors.

Why Will SPXC Outperform?

  1. Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 9.8% over the past two years

  2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 34.3% annually, topping its revenue gains

  3. Free cash flow margin increased by 5.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders

OK