ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

3 Market-Beating Stocks with Competitive Advantages

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

ABBV 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. On that note, here are three market-beating stocks that could turbocharge your returns.

AbbVie (ABBV)

Five-Year Return: +96.2%

Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE: ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.

Why Could ABBV Be a Winner?

  1. Enormous revenue base of $61.16 billion gives it economies of scale and advantages over new entrants due to the industry’s regulatory complexity
  2. Strong free cash flow margin of 36.3% enables it to reinvest or return capital consistently
  3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

AbbVie’s stock price of $212.40 implies a valuation ratio of 14.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Ameriprise Financial (AMP)

Five-Year Return: +85%

Founded in 1894 and spun off from American Express in 2005, Ameriprise Financial (NYSE: AMP) provides financial planning, wealth management, asset management, and insurance products to help individuals and institutions achieve their financial goals.

Why Are We Bullish on AMP?

  1. Share buybacks catapulted its annual earnings per share growth to 22.8%, which outperformed its revenue gains over the last five years
  2. Annual tangible book value per share growth of 43.5% over the last two years was superb and indicates its capital strength increased during this cycle
  3. Industry-leading 62.4% return on equity demonstrates management’s skill in finding high-return investments

Ameriprise Financial is trading at $454.39 per share, or 10.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Palomar Holdings (PLMR)

Five-Year Return: +72.2%

Founded in 2013 to fill gaps in catastrophe insurance markets, Palomar Holdings (NASDAQ: PLMR) is a specialty insurance provider that offers property and casualty insurance products in underserved markets, with a focus on earthquake coverage.

Why Is PLMR a Good Business?

  1. Strong 52.3% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
  2. Balance sheet strength has increased this cycle as its 36.7% annual book value per share growth over the last two years was exceptional
  3. Book value per share outlook for the upcoming 12 months is outstanding and shows it’s on track to build significant equity value

At $130.28 per share, Palomar Holdings trades at 2.9x forward P/B. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

Report this content

If you believe this article contains misleading, harmful, or spam content, please let us know.

Report this article

Recent Quotes

View More
Symbol Price Change (%)
AMZN  248.28
-2.28 (-0.91%)
AAPL  273.05
+2.82 (1.04%)
AMD  274.95
-3.44 (-1.24%)
BAC  53.95
+0.04 (0.07%)
GOOG  335.40
-4.00 (-1.18%)
META  670.91
-17.64 (-2.56%)
MSFT  418.07
-4.72 (-1.12%)
NVDA  202.06
+0.38 (0.19%)
ORCL  177.58
+2.52 (1.44%)
TSLA  392.50
-8.12 (-2.03%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.