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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.

AbbVie (ABBV)

Five-Year Return: +96.2%

Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE: ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.

Why Could ABBV Be a Winner?

  1. Enormous revenue base of $61.16 billion gives it economies of scale and advantages over new entrants due to the industry’s regulatory complexity
  2. Strong free cash flow margin of 36.3% enables it to reinvest or return capital consistently
  3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

AbbVie’s stock price of $212.40 implies a valuation ratio of 14.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Ameriprise Financial (AMP)

Five-Year Return: +85%

Founded in 1894 and spun off from American Express in 2005, Ameriprise Financial (NYSE: AMP) provides financial planning, wealth management, asset management, and insurance products to help individuals and institutions achieve their financial goals.

Why Are We Bullish on AMP?

  1. Share buybacks catapulted its annual earnings per share growth to 22.8%, which outperformed its revenue gains over the last five years
  2. Annual tangible book value per share growth of 43.5% over the last two years was superb and indicates its capital strength increased during this cycle
  3. Industry-leading 62.4% return on equity demonstrates management’s skill in finding high-return investments

Ameriprise Financial is trading at $454.39 per share, or 10.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Palomar Holdings (PLMR)

Five-Year Return: +72.2%

Founded in 2013 to fill gaps in catastrophe insurance markets, Palomar Holdings (NASDAQ: PLMR) is a specialty insurance provider that offers property and casualty insurance products in underserved markets, with a focus on earthquake coverage.

Why Is PLMR a Good Business?

  1. Strong 52.3% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
  2. Balance sheet strength has increased this cycle as its 36.7% annual book value per share growth over the last two years was exceptional
  3. Book value per share outlook for the upcoming 12 months is outstanding and shows it’s on track to build significant equity value

At $130.28 per share, Palomar Holdings trades at 2.9x forward P/B. Is now the time to initiate a position? See for yourself 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 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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