Large trillion-dollar companies are tightening their grip on the market, often by acquiring smaller rivals. This trend will likely pick up with new regulatory leadership, but a few under-the-radar businesses will continue prospering by anchoring themselves in unique market segments.
Digging up these buried treasures isn’t easy, and that’s exactly why we created StockStory. That said, here are three hidden gems that could be the next 100 baggers.
Zurn Elkay (ZWS)
Market Cap: $8.03 billion
Claiming to have saved more than 30 billion gallons of water, Zurn Elkay (NYSE: ZWS) provides water management solutions to various industries.
Why Are We Fans of ZWS?
- Superior product capabilities and pricing power lead to a premier gross margin of 42.6%
- Operating margin improvement of 3.7 percentage points over the last five years demonstrates its ability to scale efficiently
- ZWS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $50.19 per share, Zurn Elkay trades at 27x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Morningstar (MORN)
Market Cap: $6.74 billion
Founded in 1984 by Joe Mansueto with just $80,000 in personal savings, Morningstar (NASDAQ: MORN) provides independent investment data, research, and analysis tools that help investors, advisors, and institutions make informed financial decisions.
Why Is MORN a Good Business?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 11.5% annual sales growth over the last five years
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Morningstar is trading at $158.50 per share, or 13.5x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Skyward Specialty Insurance (SKWD)
Market Cap: $2.06 billion
Founded in 2006 to serve markets where standard insurance coverage falls short, Skyward Specialty Insurance (NASDAQ: SKWD) provides customized commercial property, casualty, and health insurance solutions for underserved or specialized market niches.
Why Will SKWD Beat the Market?
- Strong 27.6% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Notable projected revenue growth of 25.6% for the next 12 months hints at market share gains
- Impressive 26% annual book value per share growth over the last two years indicates it’s building equity value this cycle
Skyward Specialty Insurance’s stock price of $50.58 implies a valuation ratio of 1.7x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
