3 Surprising Stocks That Have Outperformed Big Names in the Last 10 Years | Global News Avenue

Although technology giants like Apple (AAPL) and NVIDIA (NVDA) regularly making daily headlines, three companies have been quietly generating impressive returns in an obscure but vital industry. Three such companies—IES Holdings Inc.go out), Builders FirstSource Inc. (BLDR) and American Comfort Systems (make fixed) — proving that some of the best investment stories come from companies most people would never consider. Each company’s 10-year average growth rate exceeds 40%, exceeding Nvidia’s 36% growth rate.

IES Holdings

IES Holdings has transformed from an electrical contractor into an industrial services giant. Its strategic expansion has helped IES grow from a troubled business in the mid-2000s to a company with current quarterly revenue of $768 million.

What makes IES stand out? Rather than putting all its eggs in one basket, it expands into four key areas: communications, housing, industrial services and infrastructure. This diversity means that when one industry slows down, another tends to pick up the slack. The result? Revenue has grown an impressive 31% year over year in recent quarters.

Builders first source

Builders FirstSource became the largest supplier of building materials in the United States by thinking big while selling basic products. Over the past 20 years, they have expanded from a regional business to 570 locations in 43 states. When you see a new house going up, chances are Builders FirstSource provided some of the materials.

What is their winning strategy? Acquire competitors, embrace new technologies, and focus on what builders need most. Even during the recent housing market challenges, their stock price climbed to $178, which shows how strong their business model has become. They have grown from a simple supplier to a tech-savvy giant, with their market capitalization increasing tenfold in five years.

American Comfort Systems Corporation

Comfort Systems USA’s impressive growth is evident in its recent financial results. In the third quarter of 2024, the company’s revenue increased by 31% to $1.81 billion, and revenue increased by 40% earnings per share Compared to the same period in 2023, the stock price rose to $4.09. This financial success is reflected in their stock performance, with shares reaching an all-time high of $462. How did they do it? Focusing on improving the energy efficiency of buildings is increasingly a priority for businesses and building owners.

Why are these companies successful?

These market champions share three key characteristics:

1. They find and dominate specific niches rather than trying to be everything to everyone.
2. They achieve steady growth by acquiring other companies and leveraging their scale.
3. They have adapted to changes such as the push for energy efficiency and digital technology.

bottom line

While flashy tech stocks grab the headlines, these three companies show how focusing on basic services and steady growth can create market champions. Their success proves that sometimes the best investments are in companies that do boring but necessary work, and do it extremely well.

Want to discover similar winners? Look for companies that do the following:

• lead them market niche
• Show continued financial growth
• Adapt to industry changes
• Focus on essential services that everyone needs