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3 Market-Beating Stocks with Competitive Advantages

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Stocks that outperform the market usually share key traits such as rising sales, expanding margins, and increasing returns on capital. The select few that can do all three for many years are often the ones that make you life-changing money.

The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. Keeping that in mind, here are three market-beating stocks that deserve a spot on your list.

Dell (DELL)

Five-Year Return: +94.9%

Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE: DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.

Why Are We Backing DELL?

  1. Impressive 13.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 20.5% exceeded its revenue gains over the last two years
  3. Rising returns on capital show management is finding more attractive investment opportunities

Dell’s stock price of $174.43 implies a valuation ratio of 13.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Intuitive Surgical (ISRG)

Five-Year Return: +77.7%

Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.

Why Is ISRG Interesting?

  1. Market share has increased this cycle as its 18.9% annual revenue growth over the last two years was exceptional
  2. Projected revenue growth of 14.1% for the next 12 months suggests its momentum from the last two years will persist
  3. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 21.4% annually

Intuitive Surgical is trading at $454.30 per share, or 45.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Kinsale Capital Group (KNSL)

Five-Year Return: +102%

Founded in 2009 during the aftermath of the financial crisis when many insurers were retreating from riskier markets, Kinsale Capital Group (NYSE: KNSL) is an insurance company that specializes in writing policies for hard-to-place, unusual, or high-risk businesses that standard insurers typically avoid.

Why Is KNSL a Top Pick?

  1. Net premiums earned expanded by 21.2% annually over the last two years, demonstrating exceptional market penetration this cycle
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 43.9% over the last five years outstripped its revenue performance
  3. Impressive 34.4% annual book value per share growth over the last two years indicates it’s building equity value this cycle

At $344 per share, Kinsale Capital Group trades at 3.5x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth 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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