3 Market-Beating Stocks with Solid Fundamentals

Barchart·06/05/2026 03:36:23

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.

It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. Taking that into account, here are three market-beating stocks that deserve a spot on your list.

Robinhood (HOOD)

Return Since IPO: +151%

With a mission to democratize finance, Robinhood (NASDAQ:HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.

Why Will HOOD Beat the Market?

1. Customer spending is rising as the company has focused on monetization over the last two years, leading to 143% annual growth in its average revenue per user
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 95.7% over the last three years outstripped its revenue performance
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety

Robinhood is trading at $87.23 per share, or 26.3x forward EV/EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Motorola Solutions (MSI)

Five-Year Return: +99.1%

Born from the company that invented the first portable handheld police radio in 1940, Motorola Solutions (NYSE:MSI) provides mission-critical communications, video security, and command center software solutions for public safety agencies and enterprise customers.

Why Is MSI a Good Business?

1. Impressive 9.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Adjusted operating margin expanded by 5.3 percentage points over the last five years as it scaled and became more efficient
3. Robust free cash flow margin of 19.2% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute

At $413.45 per share, Motorola Solutions trades at 23.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

CNX Resources (CNX)

Five-Year Return: +136%

Tracing back to operations that began in 1860, CNX Resources (NYSE:CNX) drills for and produces natural gas from underground shale formations in Pennsylvania, Ohio, and West Virginia.

Why Are We Fans of CNX?

1. Highly-profitable operating model results in strong unit economics and a premier gross margin of 68%
2. EBITDA profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. CNX is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

CNX Resources’s stock price of $33.88 implies a valuation ratio of 12x forward P/E. Is now a good time to buy? 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 meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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