3 Market-Beating Stocks to Target This Week
The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital, and those that can maintain this trifecta year in and year out often become the legends of the investing world.
The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. Taking that into account, here are three market-beating stocks with room for further growth.
SPX Technologies (SPXC)
Five-Year Return: +254%
With roots dating back to 1912 as the Piston Ring Company, SPX Technologies (NYSE:SPXC) supplies specialized infrastructure equipment for HVAC systems and detection and measurement applications across industrial, commercial, and utility markets.
Why Are We Bullish on SPXC?
- Impressive 15.1% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 23.6% outpaced its revenue gains
- Free cash flow margin expanded by 8.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
SPX Technologies is trading at $216.02 per share, or 26.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Woodward (WWD)
Five-Year Return: +249%
Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ:WWD) designs, services, and manufactures energy control products and optimization solutions.
Why Will WWD Beat the Market?
- Market share has increased this cycle as its 13% annual revenue growth over the last five years was exceptional
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 19.9% exceeded its revenue gains over the last two years
At $393.99 per share, Woodward trades at 40.2x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Kinsale Capital Group (KNSL)
Five-Year Return: +102%
Founded in 2009 during the aftermath of the financial crisis when many insurers were retreating from riskier markets, Kinsale Capital Group (NYSE:KNSL) is an insurance company that specializes in writing policies for hard-to-place, unusual, or high-risk businesses that standard insurers typically avoid.
Why Is KNSL a Top Pick?
- Net premiums earned expanded by 18.8% annually over the last two years, demonstrating exceptional market penetration this cycle
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 42.9% outpaced its revenue gains
- Balance sheet strength has increased this cycle as its 30.2% annual book value per share growth over the last two years was exceptional
Kinsale Capital Group’s stock price of $335.69 implies a valuation ratio of 3.3x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.