Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns, and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.
Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Keeping that in mind, here are three market-beating stocks with room for further growth.
Federal Signal (FSS)
Five-Year Return: +195%
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 Is FSS a Top Pick?
- Annual revenue growth of 14% over the last five years was superb and indicates its market share increased during 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 expanded by 5.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Federal Signal is trading at $114.15 per share, or 23.5x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
WisdomTree (WT)
Five-Year Return: +182%
Originally founded as a financial media company before pivoting to ETF management in 2006, WisdomTree (NYSE: WT) is a financial services company that creates and manages exchange-traded funds (ETFs) and other investment products for individual and institutional investors.
Why Are We Bullish on WT?
- Market share has increased this cycle as its 18.9% annual revenue growth over the last two years was exceptional
- Share repurchases over the last two years enabled its annual earnings per share growth of 52.5% to outpace its revenue gains
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $17.60 per share, WisdomTree trades at 15.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Gulfport Energy (GPOR)
Return Since IPO: +165%
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 7.2% over the past ten years was outstanding, reflecting market share gains this cycle
- Highly-profitable operating model results in strong unit economics and a top-tier gross margin of 68.6%
- Strong free cash flow margin of 17.3% enables it to reinvest or return capital consistently
Gulfport Energy’s stock price of $193.39 implies a valuation ratio of 7.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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 meeting near-term momentum — both boxes checked at the same time.
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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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
