3 Market-Beating Stocks with Competitive Advantages

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.

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.

Micron (MU)

Five-Year Return: +376%

Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NYSE:MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.

Why Is MU a Top Pick?

1. Annual revenue growth of 61.7% over the past two years was outstanding, reflecting market share gains this cycle
2. Market share is on track to rise over the next 12 months as its 108% projected revenue growth implies demand will accelerate from its two-year trend
3. Earnings per share grew by 29.2% annually over the last five years, massively outpacing its peers

Micron’s stock price of $409.60 implies a valuation ratio of 10.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Crane (CR)

Five-Year Return: +140%

Based in Connecticut, Crane (NYSE:CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.

Why Could CR Be a Winner?

1. Exciting sales outlook for the upcoming 12 months calls for 24.5% growth, an acceleration from its two-year trend
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 18.9% outpaced its revenue gains
3. Returns on capital are growing as management capitalizes on its market opportunities

At $200.52 per share, Crane trades at 30x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Houlihan Lokey (HLI)

Five-Year Return: +149%

Founded in 1972 and known for its expertise in complex financial situations, Houlihan Lokey (NYSE:HLI) is a global investment bank specializing in mergers and acquisitions, capital markets, financial restructurings, and valuation advisory services.

Why Are We Backing HLI?

1. Impressive 20% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 34.9% outpaced its revenue gains
3. Annual tangible book value per share growth of 34.3% over the past two years was outstanding, reflecting strong capital accumulation this cycle

Houlihan Lokey is trading at $165.84 per share, or 19.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.