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. On that note, here are three market-beating stocks with room for further growth.
Cadre (CDRE)
Return Since IPO: +118%
Originally known as Safariland, Cadre (NYSE:CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Why Are We Positive on CDRE?
- Annual revenue growth of 13.5% over the last two years was superb and indicates its market share increased during this cycle
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Earnings growth has massively outpaced its peers over the last four years as its EPS has compounded at 40.8% annually
Cadre is trading at $33.29 per share, or 23.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Jabil (JBL)
Five-Year Return: +522%
With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE:JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.
Why Could JBL Be a Winner?
- Massive revenue base of $33.59 billion makes it a well-known name that influences purchasing decisions
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.4% exceeded its revenue gains over the last five years
- ROIC punches in at 34.7%, illustrating management’s expertise in identifying profitable investments, and its rising returns show it’s making even more lucrative bets
Jabil’s stock price of $369.89 implies a valuation ratio of 23x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Cactus (WHD)
Five-Year Return: +123%
Named for the spiky wellhead equipment that reminded founders of desert cacti, Cactus (NYSE:WHD) manufactures wellheads, valves, and spoolable pipes used in drilling and producing oil and gas wells.
Why Are We Fans of WHD?
- Annual revenue growth of 28.5% over the last ten years was superb and indicates its market share increased during this cycle
- EBITDA margin was unchanged over the last five years, suggesting it failed to gain leverage on its fixed costs
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $73.70 per share, Cactus trades at 22.9x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.