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.
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 deserve a spot on your list.
ITT (ITT)
Five-Year Return: +121%
Playing a crucial role in the development of the first transatlantic television transmission in 1956, ITT (NYSE: ITT) provides motion and fluid handling equipment for various industries
Why Do We Like ITT?
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 17.5%
- Free cash flow margin grew by 17.4 percentage points over the last five years, giving the company more chips to play with
- ROIC punches in at 20.4%, illustrating management’s expertise in identifying profitable investments
ITT’s stock price of $169.55 implies a valuation ratio of 24.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Trane Technologies (TT)
Five-Year Return: +181%
With low-pressure heating systems as its first product, Trane (NYSE: TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.
Why Do We Love TT?
- Annual revenue growth of 11.1% over the last five years was superb and indicates its market share increased during this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 21.4% exceeded its revenue gains over the last two years
- ROIC punches in at 24.3%, illustrating management’s expertise in identifying profitable investments, and its returns are growing as it capitalizes on even better market opportunities
Trane Technologies is trading at $396.64 per share, or 27.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Sezzle (SEZL)
Return Since IPO: +436%
Founded in 2016 as an alternative to traditional credit cards for younger shoppers, Sezzle (NASDAQ: SEZL) provides a payment platform that allows consumers to split purchases into four interest-free installments over six weeks at participating retailers.
Why Could SEZL Be a Winner?
- Market share has increased this cycle as its 67.8% annual revenue growth over the last two years was exceptional
- Additional sales over the last two years increased its profitability as the 173% annual growth in its earnings per share outpaced its revenue
At $72.40 per share, Sezzle trades at 16.3x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
