This refresh
Data-driven refresh July 3, 2026. The Top Picks are the Bull Rankings quality-growth screen — strong, growing businesses with durable returns at a fair price (PEG / EV-EBIT vs sector, ROIC, free cash flow). Scanned every US-listed common stock on NYSE, NASDAQ, NYSE American, and NYSE Arca (5,229 tickers); 1,785 scored on the quality-growth model (financials route to a separate card). Fundamentals from Yahoo Finance quoteSummary reconciled with as-reported SEC EDGAR filings; narrative authored by Groq (with Gemini and data-driven fallbacks).
Top Picks — quality compounders at a fair price
1. DOCS — Doximity, Inc. · score 90.2
Health Information Services · price $21.86 · 1Y $24.37 · 5Y $30.76 · 10Y $39.45
FCF $326m C · Rev +13.1% B+ · D/E 0.01 A · P/E 22.3x B+ · PEG 0.59 A-
Why now. Health Information Services · market cap $4.0b. Down 71% from 52-week high of $76.51 — deep drawdown territory. Revenue growing +13%, comfortably above the S&P median. PEG 0.59 — paying under fair value for the growth rate. 19 sell-side analysts rate this a Buy with a mean 1-yr target of $24.37 (implying +11% upside).
Moat. Net margin 30% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 21% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 167% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 71% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon. 1-3 yr $24.37 (analyst consensus (n=19)) — multiple re-rating thesis requires a catalyst. 5 yr $30.76 at ~7% CAGR — dividend + buyback compounding. 10 yr $39.45 if the moat survives secular pressure.
2. LRN — Stride, Inc. · score 89.3
Education & Training Services · price $90.44 · 1Y $104.01 · 5Y $152.28 · 10Y $225.89
FCF $414m C · Rev +17.9% B+ · D/E 0.33 A- · P/E 14.2x A- · PEG 0.50 A
Why now. Stride, Inc. presents a compelling growth opportunity, trading at a deeply discounted valuation relative to its robust expansion in the online education sector. The company's revenue growth of 17.9% (FY YoY) is significantly underappreciated, evidenced by its remarkably low P/E of 14.2 (TTM) and an exceptional PEG Ratio of 0.5. This valuation disconnect, combined with strong Free Cash Flow of $414m (TTM), suggests the market is overlooking the persistent demand for its integrated package of systems and services supporting virtual and blended public schools.
Moat. Stride's durable edge stems from its comprehensive, technology-based products and services that enable clients to attract, enroll, educate, track progress, support, and facilitate individualized learning for students. The company's proprietary and third-party online curriculum and software systems create significant switching costs for schools and school districts, making it difficult for competitors to displace its entrenched solutions. This integrated offering, from learning software to support services, underpins a healthy 18.8% Return on Equity, reflecting the stickiness of its client base in the general education market.
Risk. The primary bear case against Stride centers on the market's skepticism regarding the sustainability of growth in online education, particularly given the significant post-pandemic re-evaluation. The stock's current price of $90.44 represents a substantial decline from its 52-week high of $171.17, indicating investor apprehension about future demand for its virtual and blended public school offerings. Furthermore, the low analyst coverage (only 2 analysts) suggests limited institutional visibility, potentially contributing to its undervaluation. A sustained deceleration in revenue growth below the current 17.9% or a contraction in the 12.2% profit margin would confirm the bear's thesis that the online education tailwind is fading.
Horizon. 1-3 yr $104.01 (structural (no analyst coverage)) — fundamentals + valuation re-rating. 5 yr $152.28 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $225.89 if current growth sustains into durable earnings power.
3. INTU — Intuit Inc. · score 89.2
Software - Application · price $275.35 · 1Y $486.61 · 5Y $712.45 · 10Y $1,057
FCF $7.8b B+ · Rev +15.6% B+ · D/E 0.33 B · P/E 16.8x A- · PEG 0.71 A-
Why now. Intuit Inc. presents a compelling growth opportunity, trading near its 52-week low of $252.84 despite robust fundamentals. The market is underpricing the durable compounding power of its Global Business Solutions segment, particularly QuickBooks services and Mailchimp, which continues to drive impressive 15.6% FY YoY revenue growth. With a highly attractive PEG ratio of 0.71 and a TTM P/E of 16.8, the current valuation offers a rare chance to own a high-quality compounder at a significant discount, with its substantial $7.8B in free cash flow providing ample financial flexibility. The crux of the thesis rests on the persistent demand for its essential financial and marketing solutions for small and mid-market businesses.
Moat. Intuit's durable edge stems from the high switching costs embedded in its core QuickBooks services, which provide essential financial management, payroll, and payment processing for small and mid-market businesses. The deep integration of these tools into daily operations creates significant friction for customers considering alternatives, ensuring sticky recurring revenue. This operational indispensability, combined with the network effects of its platform, allows for consistent pricing power and underpins its exceptional 22.2% ROE, making it difficult for competitors to dislodge quickly.
Risk. The primary bear case for Intuit centers on potential deceleration in its core small and mid-market business segments, particularly Global Business Solutions, which could challenge the growth implied by its attractive PEG ratio. The current price of $275.35, barely above its 52-week low, suggests market apprehension about future growth prospects or increased competitive pressure in areas like Mailchimp or Credit Karma. A sustained slowdown in new customer acquisition or average revenue per user within QuickBooks Online, leading to a significant dip below the 15.6% revenue growth rate, would confirm the bear thesis and erode investor confidence.
Horizon. 1-3 yr $486.61 (analyst consensus (n=32)) — fundamentals + valuation re-rating. 5 yr $712.45 at ~21% CAGR — compounding case rests on the competitive position widening. 10 yr $1,057 if current growth sustains into durable earnings power.
4. ADBE — Adobe Inc. · score 89.1
Software - Application · price $219.72 · 1Y $280.66 · 5Y $410.91 · 10Y $609.56
FCF $10.3b A- · Rev +10.5% B · D/E 0.61 C+ · P/E 12.6x A · PEG 0.60 A-
Why now. Adobe's essential role in content creation and customer experience management, spanning its Digital Media and Digital Experience segments, underpins its compounding growth. A robust 28.7% profit margin and impressive 62.8% ROE translate into substantial free cash flow of $10.3b, which, combined with a low 12.6 P/E and 0.6 PEG ratio, indicates significant value for a company still growing revenue at 10.5%. The core thesis rests on the indispensable nature of its creative and experience platforms, driving persistent demand and recurring revenue streams.
Moat. Adobe's durable moat stems from the deep integration of its Digital Media and Digital Experience segment products into the professional workflows of photographers, video editors, graphic designers, and marketers worldwide. This creates significant switching costs, making its platforms indispensable for content creation, publishing, and customer experience optimization. The exceptional 62.8% ROE is a direct result of this entrenched position and the pricing power derived from its category leadership in essential creative and business software.
Risk. Despite a reasonable P/E, the stock's high 1.43 beta suggests significant sensitivity to market downturns, especially given its current price is well below its $386.60 52-week high. A sustained slowdown in enterprise IT spending or increased competition in the Digital Experience segment could further decelerate its 10.5% revenue growth, eroding investor confidence. The bear case would be confirmed by consistent revenue growth deceleration below double digits, signaling market saturation or competitive erosion in its core segments.
Horizon. 1-3 yr $280.66 (analyst consensus (n=33)) — fundamentals + valuation re-rating. 5 yr $410.91 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $609.56 if current growth sustains into durable earnings power.
5. PCTY — Paylocity Holding Corporation · score 88.3
Software - Application · price $115.10 · 1Y $152.42 · 5Y $192.43 · 10Y $246.78
FCF $487m C · Rev +14.8% B+ · D/E 0.11 B+ · P/E 24.6x B+ · PEG 0.88 B+
Why now. Software - Application · market cap $6.2b. Down 42% from 52-week high of $197.78 — deep drawdown territory. Revenue growing +15%, comfortably above the S&P median. PEG 0.88 — paying under fair value for the growth rate. 19 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $152.42 (implying +32% upside).
Moat. Net margin 16% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 22% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 189% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 42% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. AI-native re-pricing — GPT-class models are compressing the cost of features that took years to build; the moat thesis depends on owning the workflow, not just the feature set.
Horizon. 1-3 yr $152.42 (analyst consensus (n=19)) — multiple re-rating thesis requires a catalyst. 5 yr $192.43 at ~11% CAGR — dividend + buyback compounding. 10 yr $246.78 if the moat survives secular pressure.
6. NBIX — Neurocrine Biosciences, Inc. · score 87.4
Drug Manufacturers - Specialty & Generic · price $174.26 · 1Y $195.99 · 5Y $286.95 · 10Y $425.66
FCF $831m C+ · Rev +21.4% A- · D/E 0.14 B+ · P/E 26.8x B · PEG 0.49 A
Why now. The bull case hinges on INGREZZA, the only FDA‑approved therapy for tardive dyskinesia, which is fueling a 21.4% YoY revenue growth while the business converts that top‑line momentum into a 21.6% profit margin and generates $831 m of free cash flow (TTM). A PEG of 0.49 makes the current PE of 26.8 look cheap relative to its growth, and the thesis rests on compounding earnings from the INGREZZA franchise and its pipeline extensions.
Moat. INGREZZA and Orilissa are protected by robust U.S. patents and exclusive FDA indications, creating high switching costs for neurologists and gynecologists who rely on a single, proven therapy. This IP moat drives pricing power that underpins the company’s near‑20% ROE (19.6%) and allows NBIX to maintain a low debt‑to‑equity of 0.14 while reinvesting cash into pipeline development.
Risk. The bears warn that INGREZZA’s exclusivity window is limited; once generic competition arrives, revenue could stall, turning the current PE of 26.8 into an overvaluation as growth decelerates from 21.4% to sub‑10% and margins compress. A sustained drop in quarterly revenue growth below 10% would trigger a sell‑off and invalidate the compounding thesis.
Horizon. 1-3 yr $195.99 (analyst consensus (n=28)) — fundamentals + valuation re-rating. 5 yr $286.95 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $425.66 if current growth sustains into durable earnings power.
7. ADMA — ADMA Biologics, Inc. · score 87.2
Biotechnology · price $8.95 · 1Y $17.60 · 5Y $22.22 · 10Y $28.50
FCF $108m C · Rev +19.6% B+ · D/E 1.11 C · P/E 13.2x A- · PEG 0.67 A-
Why now. Biotechnology · market cap $2.1b. Down 56% from 52-week high of $20.46 — deep drawdown territory. Revenue growing +20%, comfortably above the S&P median. PEG 0.67 — paying under fair value for the growth rate. 5 sell-side analysts publish a mean 1-yr target of $17.60 (implying +97% upside).
Moat. Net margin 32% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 42% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. Pharma moat is patent runway + pipeline depth — a single approved molecule funds the next generation of bets. Late-stage trials carry binary readouts that swing valuation 30%+.
Risk. Down 56% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trial-readout binary — late-stage clinical trials carry approve/reject outcomes that swing valuation 30%+; the equity is effectively a portfolio of these binary events, not a steady cash-flow business.
Horizon. 1-3 yr $17.60 (analyst consensus (n=5)) — multiple re-rating thesis requires a catalyst. 5 yr $22.22 at ~20% CAGR — dividend + buyback compounding. 10 yr $28.50 if the moat survives secular pressure.
8. NVDA — NVIDIA Corporation · score 86.3
Semiconductors · price $194.83 · 1Y $301.62 · 5Y $380.79 · 10Y $488.35
FCF $119.1b A · Rev +65.5% A · D/E 0.07 A- · P/E 29.8x B · PEG 0.61 A-
Why now. Semiconductors · market cap $4.7T. 18% off the 52-week high of $236.54. Revenue growing +65% — in hypergrowth territory. PEG 0.61 — paying under fair value for the growth rate. 58 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $301.62 (implying +55% upside).
Moat. Net margin 63% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 82% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $4.7T market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk. Beta 2.21 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. P/S 18.6x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard. Semiconductor cyclicality — inventory corrections compress margins faster than analysts model. Monitor channel inventory and book-to-bill ratios as leading indicators.
Horizon. 1-3 yr $301.62 (analyst consensus (n=58)) — multiple re-rating thesis requires a catalyst. 5 yr $380.79 at ~14% CAGR — dividend + buyback compounding. 10 yr $488.35 if the moat survives secular pressure.
9. EXLS — ExlService Holdings, Inc. · score 86
Information Technology Services · price $27.02 · 1Y $41.75 · 5Y $52.71 · 10Y $67.60
FCF $297m C · Rev +13.6% B+ · D/E 0.67 C+ · P/E 17.2x A- · PEG 0.83 B+
Why now. Information Technology Services · market cap $4.1b. Down 43% from 52-week high of $47.11 — deep drawdown territory. Revenue growing +14%, comfortably above the S&P median. PEG 0.83 — paying under fair value for the growth rate. 8 sell-side analysts rate this a Buy with a mean 1-yr target of $41.75 (implying +55% upside).
Moat. ROE 32% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 118% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 43% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon. 1-3 yr $41.75 (analyst consensus (n=8)) — multiple re-rating thesis requires a catalyst. 5 yr $52.71 at ~14% CAGR — dividend + buyback compounding. 10 yr $67.60 if the moat survives secular pressure.
10. HRMY — Harmony Biosciences Holdings, Inc. · score 85.1
Biotechnology · price $37.26 · 1Y $44.91 · 5Y $56.70 · 10Y $72.71
FCF $342m C · Rev +21.5% A- · D/E 0.18 B+ · P/E 15.0x A- · PEG 0.70 A-
Why now. Biotechnology · market cap $2.2b. 9% off the 52-week high of $40.87. Revenue growing +22%, comfortably above the S&P median. PEG 0.70 — paying under fair value for the growth rate. 11 sell-side analysts rate this a Buy with a mean 1-yr target of $44.91 (implying +21% upside).
Moat. Net margin 16% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 16% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk. Trial-readout binary — late-stage clinical trials carry approve/reject outcomes that swing valuation 30%+; the equity is effectively a portfolio of these binary events, not a steady cash-flow business.
Horizon. 1-3 yr $44.91 (analyst consensus (n=11)) — multiple re-rating thesis requires a catalyst. 5 yr $56.70 at ~9% CAGR — dividend + buyback compounding. 10 yr $72.71 if the moat survives secular pressure.
11. IT — Gartner, Inc. · score 84.4
Information Technology Services · price $136.32 · 1Y $165.00 · 5Y $208.31 · 10Y $267.15
FCF $1.3b C+ · Rev +3.7% C+ · D/E n/a · P/E 13.5x A- · PEG 0.55 A-
Why now. Information Technology Services · market cap $9.1b. Down 66% from 52-week high of $403.96 — deep drawdown territory. PEG 0.55 — paying under fair value for the growth rate. 13 sell-side analysts rate this a Hold with a mean 1-yr target of $165.00 (implying +21% upside).
Moat. FCF converts 170% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 66% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon. 1-3 yr $165.00 (analyst consensus (n=13)) — multiple re-rating thesis requires a catalyst. 5 yr $208.31 at ~9% CAGR — dividend + buyback compounding. 10 yr $267.15 if the moat survives secular pressure.
12. EPAM — EPAM Systems, Inc. · score 84
Information Technology Services · price $88.27 · 1Y $144.06 · 5Y $210.91 · 10Y $312.87
FCF $544m C+ · Rev +15.4% B+ · D/E 0.08 B+ · P/E 12.7x A · PEG 0.41 A
Why now. EPAM's platform engineering and cloud services are compounding revenue at 15.4% YoY, its PEG of 0.41 signals deep undervaluation relative to that growth, and its free cash flow of $544 m gives ample runway for reinvestment in high‑margin digital projects. The thesis rests on the relentless demand for enterprise digital transformation, which will keep the same high‑single‑digit margin expansion alive.
Moat. EPAM embeds its engineering, automation and AI capabilities into core client platforms, creating switching costs that lock in multi‑year service contracts. Its low debt‑to‑equity of 0.08 and recurring revenue model let it fund growth without diluting shareholders, while the integrated engineering practice is hard for competitors to replicate quickly.
Risk. A high beta of 1.43 makes EPAM vulnerable to market swings, and its modest profit margin of 7% leaves little cushion if pricing pressure intensifies. A slowdown in enterprise cloud spend could compress the current 15.4% revenue growth rate, and a breach of the 52‑week low trend would confirm a bear‑case reversal.
Horizon. 1-3 yr $144.06 (analyst consensus (n=18)) — fundamentals + valuation re-rating. 5 yr $210.91 at ~19% CAGR — compounding case rests on the competitive position widening. 10 yr $312.87 if current growth sustains into durable earnings power.
13. DXCM — DexCom, Inc. · score 83.8
Medical Devices · price $71.25 · 1Y $85.24 · 5Y $124.80 · 10Y $185.13
FCF $1.4b C+ · Rev +15.6% B+ · D/E 0.47 B · P/E 30.6x B · PEG 1.28 B
Why now. Medical Devices · market cap $27.5b. Down 21% from 52-week high of $89.98 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. 25 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $85.24 (implying +20% upside).
Moat. Net margin 19% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 31% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 154% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Beta 1.45 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 31x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $85.24 (analyst consensus (n=25)) — fundamentals + valuation re-rating. 5 yr $124.80 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $185.13 if current growth sustains into durable earnings power.
14. CARG — CarGurus, Inc. · score 82.9
Auto & Truck Dealerships · price $36.24 · 1Y $37.38 · 5Y $54.73 · 10Y $81.20
FCF $293m C · Rev +13.7% B+ · D/E 0.79 B · P/E 19.1x B · PEG 1.07 B+
Why now. CarGurus' Digital Deal platform, which lets shoppers start vehicle purchases online, is already scaling at 13.7% YoY revenue growth, converting that into a 15.9% profit margin and a staggering 62.9% ROE; the $293 m free cash flow and a PEG of 1.07 prove the growth is still cheap, and the thesis hinges on Digital Deal and dealer subscriptions compounding earnings for years to come.
Moat. The integrated dealer‑subscription suite creates a lock‑in effect: dealers rely on CarGurus' lead flow and advertising inventory, making switching costly, while the platform’s scale lets CarGurus command pricing power that fuels the 62.9% ROE.
Risk. If revenue growth stalls below 10% and margins erode, the current PE of 19.1 becomes unjustified; a debt‑to‑equity of 0.79 and beta of 1.18 amplify downside risk, and a Q2 revenue miss would trigger a sell‑off, confirming the bear case.
Horizon. 1-3 yr $37.38 (analyst consensus (n=13)) — fundamentals + valuation re-rating. 5 yr $54.73 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $81.20 if current growth sustains into durable earnings power.
15. META — Meta Platforms, Inc. · score 82.2
Internet Content & Information · price $582.90 · 1Y $828.17 · 5Y $1,046 · 10Y $1,341
FCF $48.3b A · Rev +22.2% A- · D/E 0.36 B+ · P/E 21.2x B · PEG 0.84 B+
Why now. Internet Content & Information · market cap $1.5T. Down 27% from 52-week high of $796.25 — deep drawdown territory. Revenue growing +22%, comfortably above the S&P median. PEG 0.84 — paying under fair value for the growth rate. 58 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $828.17 (implying +42% upside).
Moat. Net margin 33% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 29% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $1.5T market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk. Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon. 1-3 yr $828.17 (analyst consensus (n=58)) — multiple re-rating thesis requires a catalyst. 5 yr $1,046 at ~12% CAGR — dividend + buyback compounding. 10 yr $1,341 if the moat survives secular pressure.
16. VEEV — Veeva Systems Inc. · score 82.2
Health Information Services · price $192.74 · 1Y $244.59 · 5Y $358.11 · 10Y $531.23
FCF $1.7b C+ · Rev +16.3% B+ · D/E 0.01 A- · P/E 34.1x C+ · PEG 0.87 B+
Why now. Health Information Services · market cap $31.3b. Down 38% from 52-week high of $310.50 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. PEG 0.87 — paying under fair value for the growth rate. 27 sell-side analysts rate this a Buy with a mean 1-yr target of $244.59 (implying +27% upside).
Moat. Net margin 28% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 13% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 177% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 38% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trailing P/E 34x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $244.59 (analyst consensus (n=27)) — fundamentals + valuation re-rating. 5 yr $358.11 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $531.23 if current growth sustains into durable earnings power.
17. RMD — ResMed Inc. · score 82
Medical Instruments & Supplies · price $209.63 · 1Y $260.60 · 5Y $381.54 · 10Y $566.00
FCF $1.8b C+ · Rev +9.8% B · D/E 0.13 B+ · P/E 20.2x B+ · PEG 1.23 B
Why now. Medical Instruments & Supplies · market cap $30.4b. Down 29% from 52-week high of $293.81 — deep drawdown territory. 15 sell-side analysts rate this a Buy with a mean 1-yr target of $260.60 (implying +24% upside).
Moat. Net margin 27% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 23% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 115% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon. 1-3 yr $260.60 (analyst consensus (n=15)) — fundamentals + valuation re-rating. 5 yr $381.54 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $566.00 if current growth sustains into durable earnings power.
18. CVSA — Covista Inc. · score 81.4
Education & Training Services · price $129.88 · 1Y $156.25 · 5Y $197.26 · 10Y $252.98
FCF $336m C · Rev +12.9% B+ · D/E 0.54 B+ · P/E 18.9x B · PEG 0.88 B+
Why now. Education & Training Services · market cap $4.4b. 17% off the 52-week high of $156.26. Revenue growing +13%, comfortably above the S&P median. PEG 0.88 — paying under fair value for the growth rate. 4 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $156.25 (implying +20% upside).
Moat. Net margin 12% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 17% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 144% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon. 1-3 yr $156.25 (analyst consensus (n=4)) — multiple re-rating thesis requires a catalyst. 5 yr $197.26 at ~9% CAGR — dividend + buyback compounding. 10 yr $252.98 if the moat survives secular pressure.
19. MELI — MercadoLibre, Inc. · score 80.1
Internet Retail · price $1763.36 · 1Y $2,209 · 5Y $3,234 · 10Y $4,797
FCF $11.8b A- · Rev +34.3% A · D/E 1.70 C+ · P/E 46.5x C · PEG 1.09 B+
Why now. Internet Retail · market cap $89.4b. Down 31% from 52-week high of $2548.50 — deep drawdown territory. Revenue growing +34% — in hypergrowth territory. 24 sell-side analysts rate this a Buy with a mean 1-yr target of $2,209 (implying +25% upside).
Moat. ROE 26% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $89.4b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Down 31% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trailing P/E 47x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. E-commerce competition — Amazon, Walmart, Shein, and Temu have each forced the rest of the category to compete on price, fulfillment speed, or assortment; sustaining margins requires one of those being structurally defended.
Horizon. 1-3 yr $2,209 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $3,234 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $4,797 if current growth sustains into durable earnings power.
20. QCOM — QUALCOMM Incorporated · score 80
Semiconductors · price $176.25 · 1Y $215.42 · 5Y $271.96 · 10Y $348.78
FCF $12.5b A- · Rev +13.7% B+ · D/E 0.56 C+ · P/E 18.9x A- · PEG 0.58 A-
Why now. Semiconductors · market cap $185.8b. Down 32% from 52-week high of $259.92 — deep drawdown territory. Revenue growing +14%, comfortably above the S&P median. PEG 0.58 — paying under fair value for the growth rate. 31 sell-side analysts rate this a Hold with a mean 1-yr target of $215.42 (implying +22% upside).
Moat. Net margin 22% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 36% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 126% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 32% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 1.64 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Semiconductor cyclicality — inventory corrections compress margins faster than analysts model. Monitor channel inventory and book-to-bill ratios as leading indicators.
Horizon. 1-3 yr $215.42 (analyst consensus (n=31)) — multiple re-rating thesis requires a catalyst. 5 yr $271.96 at ~9% CAGR — dividend + buyback compounding. 10 yr $348.78 if the moat survives secular pressure.
21. PODD — Insulet Corporation · score 79.5
Medical Devices · price $164.48 · 1Y $240.25 · 5Y $351.75 · 10Y $521.80
FCF $416m C · Rev +30.7% A · D/E 0.78 C+ · P/E 38.4x C+ · PEG 1.41 B
Why now. Medical Devices · market cap $11.4b. Down 54% from 52-week high of $354.88 — deep drawdown territory. Revenue growing +31% — in hypergrowth territory. 24 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $240.25 (implying +46% upside).
Moat. ROE 23% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 137% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 54% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trailing P/E 38x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $240.25 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $351.75 at ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $521.80 if current growth sustains into durable earnings power.
22. DECK — Deckers Outdoor Corporation · score 79.2
Footwear & Accessories · price $104.69 · 1Y $126.86 · 5Y $160.15 · 10Y $205.39
FCF $1.1b C+ · Rev +9.8% B · D/E 0.15 A · P/E 14.9x A- · PEG 1.25 B
Why now. Footwear & Accessories · market cap $14.5b. 17% off the 52-week high of $126.50. 21 sell-side analysts rate this a Buy with a mean 1-yr target of $126.86 (implying +21% upside).
Moat. Net margin 19% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 41% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 107% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon. 1-3 yr $126.86 (analyst consensus (n=21)) — multiple re-rating thesis requires a catalyst. 5 yr $160.15 at ~9% CAGR — dividend + buyback compounding. 10 yr $205.39 if the moat survives secular pressure.
23. FIVE — Five Below, Inc. · score 79.2
Specialty Retail · price $182.43 · 1Y $260.81 · 5Y $329.27 · 10Y $422.28
FCF $505m C+ · Rev +22.9% A- · D/E 0.86 B · P/E 23.0x B · PEG 0.98 B+
Why now. Specialty Retail · market cap $10.1b. Down 28% from 52-week high of $251.63 — deep drawdown territory. Revenue growing +23%, comfortably above the S&P median. PEG 0.98 — paying under fair value for the growth rate. 21 sell-side analysts rate this a Buy with a mean 1-yr target of $260.81 (implying +43% upside).
Moat. ROE 19% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 115% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon. 1-3 yr $260.81 (analyst consensus (n=21)) — multiple re-rating thesis requires a catalyst. 5 yr $329.27 at ~13% CAGR — dividend + buyback compounding. 10 yr $422.28 if the moat survives secular pressure.
24. NFLX — Netflix, Inc. · score 77.2
Entertainment · price $77.65 · 1Y $113.94 · 5Y $166.82 · 10Y $247.47
FCF $11.9b A- · Rev +15.9% B+ · D/E 0.54 B · P/E 25.0x B · PEG 1.53 C+
Why now. Entertainment · market cap $327.0b. Down 40% from 52-week high of $129.50 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. 44 sell-side analysts rate this a Buy with a mean 1-yr target of $113.94 (implying +47% upside).
Moat. Net margin 29% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 43% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $327.0b market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk. Down 40% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 1.52 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.
Horizon. 1-3 yr $113.94 (analyst consensus (n=44)) — fundamentals + valuation re-rating. 5 yr $166.82 at ~17% CAGR — compounding case rests on the competitive position widening. 10 yr $247.47 if current growth sustains into durable earnings power.
25. FISV — Fiserv, Inc. · score 75.7
Sector n/a · price $52.33 · 1Y $70.00 · 5Y $88.37 · 10Y $113.34
FCF $4.1b B · Rev +9.3% B · D/E n/a · P/E 8.9x A- · PEG 2.46 C
Why now. Sector n/a · market cap $27.9b. Down 70% from 52-week high of $175.92 — deep drawdown territory. 26 sell-side analysts rate this a Hold with a mean 1-yr target of $70.00 (implying +34% upside).
Moat. Net margin 20% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 12% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 129% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 70% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon. 1-3 yr $70.00 (analyst consensus (n=26)) — multiple re-rating thesis requires a catalyst. 5 yr $88.37 at ~11% CAGR — dividend + buyback compounding. 10 yr $113.34 if the moat survives secular pressure.
26. YUMC — Yum China Holdings, Inc. · score 75.5
Restaurants · price $41.70 · 1Y $61.34 · 5Y $89.81 · 10Y $133.23
FCF $931m C+ · Rev +4.4% C+ · D/E 0.38 A- · P/E 16.0x B+ · PEG 1.04 B+
Why now. Restaurants · market cap $14.4b. Down 29% from 52-week high of $58.39 — deep drawdown territory. 21 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $61.34 (implying +47% upside).
Moat. ROE 17% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 98% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon. 1-3 yr $61.34 (analyst consensus (n=21)) — fundamentals + valuation re-rating. 5 yr $89.81 at ~17% CAGR — compounding case rests on the competitive position widening. 10 yr $133.23 if current growth sustains into durable earnings power.
27. ULTA — Ulta Beauty, Inc. · score 75
Specialty Retail · price $461.33 · 1Y $627.25 · 5Y $918.36 · 10Y $1,362
FCF $1.1b C+ · Rev +9.7% B · D/E 0.89 B · P/E 17.3x B+ · PEG 1.60 C+
Why now. Specialty Retail · market cap $19.8b. Down 35% from 52-week high of $714.97 — deep drawdown territory. 24 sell-side analysts rate this a Buy with a mean 1-yr target of $627.25 (implying +36% upside).
Moat. ROE 46% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 95% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 35% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon. 1-3 yr $627.25 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $918.36 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $1,362 if current growth sustains into durable earnings power.
28. SE — Sea Limited · score 74.2
Internet Retail · price $103.30 · 1Y $140.26 · 5Y $205.35 · 10Y $304.62
FCF $4.5b B · Rev +36.4% A · D/E 0.28 A- · P/E 40.7x C · PEG 1.38 B
Why now. Internet Retail · market cap $63.3b. Down 48% from 52-week high of $199.30 — deep drawdown territory. Revenue growing +36% — in hypergrowth territory. 28 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $140.26 (implying +36% upside).
Moat. ROE 13% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $63.3b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Down 48% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 1.55 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 41x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $140.26 (analyst consensus (n=28)) — fundamentals + valuation re-rating. 5 yr $205.35 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $304.62 if current growth sustains into durable earnings power.
29. EME — EMCOR Group, Inc. · score 73.9
Engineering & Construction · price $774.66 · 1Y $1,000 · 5Y $1,263 · 10Y $1,619
FCF $1.1b C+ · Rev +16.6% B+ · D/E 0.13 A- · P/E 26.0x B · PEG 0.44 A
Why now. Engineering & Construction · market cap $34.5b. 19% off the 52-week high of $951.96. Revenue growing +17%, comfortably above the S&P median. PEG 0.44 — paying under fair value for the growth rate. 7 sell-side analysts publish a mean 1-yr target of $1,000 (implying +29% upside).
Moat. ROE 35% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which.
Risk. Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon. 1-3 yr $1,000 (analyst consensus (n=7)) — multiple re-rating thesis requires a catalyst. 5 yr $1,263 at ~10% CAGR — dividend + buyback compounding. 10 yr $1,619 if the moat survives secular pressure.
30. VST — Vistra Corp. · score 73.8
Utilities - Independent Power Producers · price $151.05 · 1Y $222.89 · 5Y $281.39 · 10Y $360.88
FCF $1.8b C+ · Rev +19.1% B+ · D/E 3.55 D · P/E 25.3x C · PEG 0.45 A
Why now. Utilities - Independent Power Producers · market cap $50.9b. Down 31% from 52-week high of $219.82 — deep drawdown territory. Revenue growing +19%, comfortably above the S&P median. PEG 0.45 — paying under fair value for the growth rate. 18 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $222.89 (implying +48% upside).
Moat. Net margin 12% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 40% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $50.9b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. D/E 3.55 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Down 31% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 1.41 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.
Horizon. 1-3 yr $222.89 (analyst consensus (n=18)) — multiple re-rating thesis requires a catalyst. 5 yr $281.39 at ~13% CAGR — dividend + buyback compounding. 10 yr $360.88 if the moat survives secular pressure.
Methodology footnote
Every pick on this list comes out of the same quality-growth model — one 0–100 score blending quality, growth, and value — applied to every US-listed common stock with a market cap above $1B. Each pick's score breakdown is auditable from the home page — click the ticker on the rankings page to see exactly which grades produced the number. Not investment advice. See terms for full disclosures.