3 Market-Beating Stocks with Competitive Advantages

via StockStory

VMI Cover Image

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.

The bottom line is that over the long term, earnings growth goes hand in hand with the biggest winners. On that note, here are three market-beating stocks that could turbocharge your returns.

Valmont (VMI)

Five-Year Return: +104%

Credited with an invention in the 1950s that improved crop yields, Valmont (NYSE:VMI) provides engineered products and infrastructure services for the agricultural industry.

Why Do We Like VMI?

  1. Operating margin expanded by 2.4 percentage points over the last five years as it scaled and became more efficient
  2. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 57.6% annually
  3. Free cash flow margin increased by 10.2 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Valmont is trading at $497.53 per share, or 2.1x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Crane (CR)

Five-Year Return: +93.9%

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

Why Does CR Stand Out?

  1. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 24.3%
  2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 18.9% annually, topping its revenue gains
  3. Returns on capital are climbing as management makes more lucrative bets

Crane’s stock price of $184.85 implies a valuation ratio of 26.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Occidental Petroleum (OXY)

Five-Year Return: +132%

Backed by Warren Buffett's Berkshire Hathaway as a major shareholder, Occidental Petroleum (NYSE:OXY) explores for, develops, and produces oil, natural gas liquids, and natural gas, primarily in the United States and Middle East.

Why Are We Positive On OXY?

  1. Unparalleled revenue scale of $22.08 billion gives it advantageous pricing and terms with suppliers
  2. Attractive asset base are reflected in its stellar gross margin of 65.2%
  3. Strong free cash flow margin of 24.4% enables it to reinvest or return capital consistently

At $57.86 per share, Occidental Petroleum trades at 12.2x forward P/E. Is now the right time to buy? 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 (+1,326% between June 2020 and June 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.