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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 with room for further growth.

Clean Harbors (CLH)

Five-Year Return: +210%

Established in 1980, Clean Harbors (NYSE: CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups.

Why Are We Positive On CLH?

  1. Market share has increased this cycle as its 14.4% annual revenue growth over the last five years was exceptional
  2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
  3. Free cash flow margin expanded by 5.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Clean Harbors is trading at $286.82 per share, or 32.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Graham Corporation (GHM)

Five-Year Return: +609%

Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE: GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors.

Why Should You Buy GHM?

  1. Annual revenue growth of 15% over the last two years was superb and indicates its market share increased during this cycle
  2. Earnings growth has massively outpaced its peers over the last one years as its EPS has compounded at 83.3% annually
  3. Free cash flow margin jumped by 15.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Graham Corporation’s stock price of $100 implies a valuation ratio of 52x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

TD SYNNEX (SNX)

Five-Year Return: +87.7%

Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE: SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.

Why Do We Love SNX?

  1. Annual revenue growth of 25.6% over the past five years was outstanding, reflecting market share gains this cycle
  2. Enormous revenue base of $65.14 billion provides significant distribution advantages
  3. Free cash flow margin jumped by 3.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $240 per share, TD SYNNEX trades at 14.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating 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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