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3 Market-Beating Stocks with Competitive Advantages

TGLS Cover Image

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. Keeping that in mind, here are three market-beating stocks that deserve a spot on your list.

Tecnoglass (TGLS)

Five-Year Return: +1,184%

The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE: TGLS) is a manufacturer of architectural glass, windows, and aluminum products.

Why Could TGLS Be a Winner?

  1. Market share has increased this cycle as its 20.3% annual revenue growth over the last five years was exceptional
  2. Healthy operating margin of 27.3% shows it’s a well-run company with efficient processes, and its rise over the last five years was fueled by some leverage on its fixed costs
  3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are climbing as it finds even more attractive growth opportunities

Tecnoglass’s stock price of $68.05 implies a valuation ratio of 15.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

FB Financial (FBK)

Five-Year Return: +121%

Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE: FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.

Why Does FBK Stand Out?

  1. Impressive 14.4% annual net interest income growth over the last five years indicates it’s winning market share this cycle
  2. Projected net interest income growth of 32.6% for the next 12 months is above its five-year trend, pointing to accelerating demand
  3. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 6% annually

At $55.59 per share, FB Financial trades at 1.5x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Tradeweb Markets (TW)

Five-Year Return: +92%

Founded in 1996 as one of the pioneers in electronic bond trading, Tradeweb Markets (NASDAQ: TW) builds and operates electronic marketplaces that connect financial institutions for trading across rates, credit, equities, and money markets.

Why Are We Bullish on TW?

  1. Market share has increased this cycle as its 25.9% annual revenue growth over the last two years was exceptional
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 27.5% over the last two years outstripped its revenue performance

Tradeweb Markets is trading at $111.37 per share, or 30.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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.

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