The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. Keeping that in mind, here are three stocks with lasting competitive advantages.
AZZ (AZZ)
One-Month Return: +13.9%
Responsible for projects like nuclear facilities, AZZ (NYSE: AZZ) is a provider of metal coating and power infrastructure solutions.
Why Do We Love AZZ?
- Market share has increased this cycle as its 12.7% annual revenue growth over the last five years was exceptional
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 22.3% annually, topping its revenue gains
- Free cash flow margin grew by 25.1 percentage points over the last five years, giving the company more chips to play with
At $126.11 per share, AZZ trades at 19.2x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Bloom Energy (BE)
One-Month Return: +59%
Working in stealth mode for eight years, Bloom Energy (NYSE: BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.
Why Is BE a Good Business?
- Impressive 19.1% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Free cash flow margin is now positive, showing the company has crossed a key inflection point
- Historical investments are beginning to pay off as its returns on capital are growing
Bloom Energy is trading at $145.40 per share, or 174.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Interactive Brokers (IBKR)
One-Month Return: +17%
Founded in 1977 and known for its sophisticated trading technology and global reach across 150+ exchanges in 34 countries, Interactive Brokers (NASDAQ: IBKR) is a global electronic broker that provides low-cost trading and investment services across stocks, options, futures, forex, bonds, and other financial instruments.
Why Is IBKR a Top Pick?
- Impressive 22.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 28.8% annually, topping its revenue gains
- Balance sheet strength has increased this cycle as its 20.7% annual tangible book value per share growth over the last two years was exceptional
Interactive Brokers’s stock price of $77.17 implies a valuation ratio of 31.3x 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
Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
