Market-Beating Stocks: Stride, Caterpillar, UL Solutions Shine with Exceptional Earnings Growth

Three market-beating stocks have emerged as top picks for investors, thanks to their exceptional earnings growth and returns on capital. Stride (LRN) is one such company that has consistently increased its sales, margins, and returns on capital over the past five years.

With a five-year return of +159%, Stride's market share has expanded significantly, driven by annual revenue growth of 11.1% over the last two years. Its free cash flow margin has also grown by 5.8 percentage points during this period, giving the company more capital to invest or return to shareholders.

Caterpillar (CAT) is another stock that deserves attention, with a five-year return of +284%. The company's annual revenue growth of 10.2% over the last five years has beaten the sector average, while its share repurchases have amplified shareholder returns.

UL Solutions (ULS), founded in 1894, provides testing and certification services that help companies ensure their products meet safety standards. Its incremental sales over the past two years have been highly profitable, with earnings per share increasing by 23% annually, topping its revenue gains.