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3 Market-Beating Stocks with Competitive Advantages

BKNG Cover Image

Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns, and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.

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 could turbocharge your returns.

Booking (BKNG)

Five-Year Return: +72.6%

Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.

Why Could BKNG Be a Winner?

  1. Platform is difficult to replicate at scale and results in a best-in-class gross margin of 86.7%
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 31.4% exceeded its revenue gains over the last three years
  3. Strong free cash flow margin of 33.5% enables it to reinvest or return capital consistently

At $4,072 per share, Booking trades at 11.7x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.

Super Micro (SMCI)

Five-Year Return: +889%

Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ: SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications.

Why Will SMCI Beat the Market?

  1. Annual revenue growth of 74.1% over the past two years was outstanding, reflecting market share gains this cycle
  2. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 45.5% annually
  3. Free cash flow profile has moved into positive territory over the last five years, indicating the company has achieved financial self-sustainability

Super Micro is trading at $32.28 per share, or 13.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

BrightSpring Health Services (BTSG)

Return Since IPO: +267%

Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.

Why Is BTSG on Our Radar?

  1. Annual revenue growth of 21.4% over the past two years was outstanding, reflecting market share gains this cycle
  2. Forecasted revenue growth of 13.9% for the next 12 months indicates its momentum over the last two years is sustainable
  3. Earnings per share have massively outperformed its peers over the last four years, increasing by 15.7% annually

BrightSpring Health Services’s stock price of $40.35 implies a valuation ratio of 33.3x 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

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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.

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