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3 Market-Beating Stocks with Competitive Advantages

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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.

It’s clear there’s a strong connection between sustained earnings growth and hall-of-fame returns. On that note, here are three market-beating stocks that could turbocharge your returns.

Core & Main (CNM)

Five-Year Return: +91%

Formerly a division of industrial distributor HD Supply, Core & Main (NYSE: CNM) is a provider of water, wastewater, and fire protection products and services.

Why Are We Positive on CNM?

  1. Impressive 14.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
  2. Share buybacks propelled its annual earnings per share growth to 13.5%, which outperformed its revenue gains over the last two years
  3. Free cash flow margin expanded by 8.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Core & Main is trading at $46.54 per share, or 15.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

United Rentals (URI)

Five-Year Return: +250%

Owning the largest rental fleet in the world, United Rentals (NYSE: URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.

Why Could URI Be a Winner?

  1. Impressive 13.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
  2. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 26.1%
  3. Share repurchases over the last five years enabled its annual earnings per share growth of 19.5% to outpace its revenue gains

At $1,160 per share, United Rentals trades at 22x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

IMAX (IMAX)

Five-Year Return: +232%

Originally developed for World Expo '67 in Montreal as an innovative projection system, IMAX (NYSE: IMAX) provides proprietary large-format cinema technology and systems that deliver immersive movie experiences with enhanced image quality and sound.

Why Is IMAX a Good Business?

  1. Market share has increased this cycle as its 17.9% annual revenue growth over the last five years was exceptional
  2. Free cash flow margin jumped by 24.8 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
  3. Rising returns on capital show the company is starting to reap the benefits of its past investments

IMAX’s stock price of $50.99 implies a valuation ratio of 27x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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.

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