
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 with room for further growth.
Trane Technologies (TT)
Five-Year Return: +152%
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 Will TT Outperform?
- Impressive 11.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its rising returns show it’s making even more lucrative bets
Trane Technologies’s stock price of $417.66 implies a valuation ratio of 28.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
FirstCash (FCFS)
Five-Year Return: +169%
Offering a financial lifeline to the unbanked and credit-constrained since 1988, FirstCash (NASDAQ: FCFS) operates pawn stores across the U.S. and Latin America while also providing retail point-of-sale payment solutions for credit-constrained consumers.
Why Is FCFS on Our Radar?
- Annual revenue growth of 17.5% over the past five years was outstanding, reflecting market share gains this cycle
- Additional sales over the last five years increased its profitability as the 23.8% annual growth in its earnings per share outpaced its revenue
- Adequate return on equity shows management makes decent investment decisions
At $186.80 per share, FirstCash trades at 18.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Enova (ENVA)
Five-Year Return: +270%
Pioneering online lending since 2004 with a massive database of over 65 terabytes of customer behavior data, Enova International (NYSE: ENVA) provides online financial services including installment loans and lines of credit to non-prime consumers and small businesses in the United States and Brazil.
Why Is ENVA a Good Business?
- Impressive 23.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Balance sheet strength has increased this cycle as its 16.1% annual book value per share growth over the last five years was exceptional
Enova is trading at $134.08 per share, or 8.5x forward P/E. Is now the right time to buy? Find out in our full 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.