3 Market-Beating Stocks with Competitive Advantages

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. Keeping that in mind, here are three market-beating stocks with room for further growth.

TJX (TJX)

Five-Year Return: +139%

Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE:TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.

Why Should TJX Be on Your Watchlist?

1. New store openings and solid same-store sales performance have boosted its top-line growth
2. Same-store sales growth averaged 4.4% over the past two years, showing it’s bringing new and repeat shoppers into its stores
3. Enormous revenue base of $56.99 billion compensates for its low gross margin and provides significant leverage in supplier negotiations

TJX is trading at $127.49 per share, or 27.8x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

RBC Bearings (RBC)

Five-Year Return: +169%

With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE:RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.

Why Does RBC Catch Our Eye?

1. Annual revenue growth of 17.6% over the past five years was outstanding, reflecting market share gains this cycle
2. Healthy operating margin of 19.9% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage
3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 20.5% annually

RBC Bearings’s stock price of $365.33 implies a valuation ratio of 33.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Mirion (MIR)

Return Since IPO: +93.5%

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 Are We Fans of MIR?

1. Impressive 9.4% annual revenue growth over the last three years indicates it’s winning market share this cycle
2. Earnings per share grew by 16.8% annually over the last two years, massively outpacing its peers
3. Free cash flow margin grew by 4.4 percentage points over the last five years, giving the company more chips to play with

At $19.25 per share, Mirion trades at 24.9x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.