3 Market-Beating Stocks with Competitive Advantages

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.

Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. Keeping that in mind, here are three market-beating stocks with room for further growth.

Blue Bird (BLBD)

Five-Year Return: +349%

With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.

Why Is BLBD a Top Pick?

1. Impressive 14.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 317% annually, topping its revenue gains
3. Returns on capital are climbing as management makes more lucrative bets

Blue Bird’s stock price of $56 implies a valuation ratio of 13.6x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

Mirion (MIR)

Five-Year Return: +134%

With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE:MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.

Why Is MIR on Our Radar?

1. Annual revenue growth of 8.2% over the last four years beat the sector average and underscores the unique value of its offerings
2. Market share is on track to rise over the next 12 months as its 15.8% projected revenue growth implies demand will accelerate from its two-year trend
3. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 28.2% outpaced its revenue gains

At $24.04 per share, Mirion trades at 43.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Medpace (MEDP)

Five-Year Return: +330%

Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ:MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.

Why Do We Watch MEDP?

1. Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 15.7% over the past two years
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 36.7% exceeded its revenue gains over the last five years
3. Industry-leading 44.1% return on capital demonstrates management’s skill in finding high-return investments

Medpace is trading at $529.98 per share, or 36.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Stocks We Like Even More

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 6 Stocks for this week. 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 Tecnoglass (+1,754% 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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