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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.

Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Taking that into account, here are three market-beating stocks that could turbocharge your returns.

Meta (META)

Five-Year Return: +199%

Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ: META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.

Why Will META Outperform?

  1. 13.3% annual increases in its average revenue per user over the last two years show its platform is resonating with power users
  2. Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 59.9%, and its rise over the last few years was fueled by some leverage on its fixed costs
  3. Strong free cash flow margin of 31.5% enables it to reinvest or return capital consistently

At $717.60 per share, Meta trades at 16.3x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Intuitive Surgical (ISRG)

Five-Year Return: +179%

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. Products are reaching more customers as its system placement averaged 11.8% growth over the past two years
  2. Estimated revenue growth of 14.6% for the next 12 months implies its momentum over the last two years will continue
  3. Earnings per share grew by 12.3% annually over the last five years and easily exceeded the peer group average

Intuitive Surgical’s stock price of $543.38 implies a valuation ratio of 64.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Huron (HURN)

Five-Year Return: +220%

Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ: HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions.

Why Do We Like HURN?

  1. Market share has increased this cycle as its 13.1% annual revenue growth over the last two years was exceptional
  2. Adjusted operating margin expanded by 8.6 percentage points over the last five years as it scaled and became more efficient
  3. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

Huron is trading at $139.98 per share, or 19x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio 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-small-cap company Exlservice (+354% 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

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