This refresh
Data-driven refresh July 10, 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 (5,236 tickers); 1,779 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 $22.01 · 1Y $24.53 · 5Y $35.91 · 10Y $53.27
FCF $326m C · Rev +13.1% B+ · D/E 0.01 A · P/E 22.5x B+ · PEG 0.59 A-
Why now. The AI‑driven Ask assistant is turning Doximity’s physician network into a sticky, revenue‑generating engine, propelling a 13.1% YoY revenue surge while preserving a lofty 30.4% profit margin and trading at a cheap PEG of 0.59; the thesis hinges on Ask’s ability to lock in clinicians and monetize ever‑growing pharma sponsorships.
Moat. Ask’s HIPAA‑compliant, AI‑powered workflow integration creates a high switching cost for U.S. doctors who have built their daily practice around Doximity’s feed, and the resulting data moat fuels pricing power that drives a 20.6% ROE, a level only achievable with a captive professional audience that rivals can’t replicate quickly.
Risk. The stock still commands a forward P/E of 22.5 despite a 13.1% growth rate, and a beta of 1.29 amplifies market swings; a slowdown in revenue growth or a pullback in pharma spend would compress margins and force the valuation down toward its 52‑week low of $17.15. A sustained miss on growth would confirm the bear case.
Horizon. 1-3 yr $24.53 (analyst consensus (n=19)) — fundamentals + valuation re-rating. 5 yr $35.91 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $53.27 if current growth sustains into durable earnings power.
2. INTU — Intuit Inc. · score 89.4
Software - Application · price $273.38 · 1Y $486.61 · 5Y $712.45 · 10Y $1,057
FCF $7.8b B+ · Rev +15.6% B+ · D/E 0.33 B · P/E 16.7x A- · PEG 0.71 A-
Why now. Intuit's entrenched ecosystem for small and mid-market businesses, anchored by its Global Business Solutions segment with QuickBooks and Mailchimp, continues to deliver exceptional financial performance. A 15.6% FY YoY revenue growth combined with a TTM free cash flow of $7.8B on a $74.8B market cap demonstrates a high-quality compounder trading at a compelling valuation, especially with a PEG ratio of 0.71. The crux is the persistent demand for integrated financial management, payments, and marketing solutions, ensuring durable compounding.
Moat. Intuit's durable moat stems from the high switching costs inherent in its QuickBooks ecosystem, which integrates financial management, payroll, and payment processing for small and mid-market businesses. This comprehensive suite, including Mailchimp for marketing automation, creates a sticky platform that is difficult for competitors to dislodge once adopted. The impressive 22.2% ROE reflects the pricing power derived from its category leadership in these essential business services, making it indispensable for its customer base.
Risk. The bear case hinges on potential deceleration in revenue growth, particularly if increased competition erodes pricing power within the Global Business Solutions segment or the Credit Karma offering struggles to gain traction. Despite a strong 21.9% profit margin, a sustained slowdown from the 15.6% FY YoY revenue growth would quickly re-rate the stock, especially given its current price is only slightly above its 52-week low of $252.84. A consistent trend of declining average revenue per user (ARPU) in QuickBooks or Mailchimp would confirm the bear's thesis.
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.
3. DLO — DLocal Limited · score 89.3
Software - Infrastructure · price $14.57 · 1Y $17.75 · 5Y $25.99 · 10Y $38.55
FCF $413m C · Rev +46.6% A · D/E 0.20 B+ · P/E 22.8x B+ · PEG 0.49 A
Why now. DLocal’s cross‑border pay‑in platform for global merchants is the engine of a near‑term revenue explosion, delivering 46.6% YoY growth while the business converts that top‑line surge into a 34.6% ROE and a cheap PEG of 0.49. The combination of a 22.8× P/E on a high‑margin (18%) franchise and a rock‑solid balance sheet (Debt/Equity 0.2) means earnings will keep compounding as merchants deepen their reliance on DLocal’s suite of payment methods. The thesis rests on the persistence of that merchant stickiness and the ability to keep scaling the platform.
Moat. DLocal’s moat comes from its end‑to‑end pay‑in and pay‑out suite that locks merchants into a single integration for hundreds of local cards, bank transfers and alternative payment methods, creating high switching costs. Its pricing power in the cross‑border payments niche fuels the 34.6% ROE, as merchants pay premium fees for the convenience and coverage that rivals cannot replicate quickly.
Risk. The stock trades at a 22.8× P/E despite a 46.6% revenue growth rate, leaving little room for a slowdown; a dip in YoY growth below 30% or margin compression would make the valuation look stretched. Competitive pressure from global payment processors could erode pricing power, and a widening of the beta‑adjusted risk premium would pressure the share price. The bear case is confirmed if the next quarter’s revenue growth falls under 30% and profit margin slides below 15%.
Horizon. 1-3 yr $17.75 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $25.99 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $38.55 if current growth sustains into durable earnings power.
4. LRN — Stride, Inc. · score 89.3
Education & Training Services · price $91.09 · 1Y $104.75 · 5Y $153.37 · 10Y $227.51
FCF $414m C · Rev +17.9% B+ · D/E 0.33 A- · P/E 14.3x A- · PEG 0.51 A-
Why now. Stride, Inc. presents a compelling growth thesis, leveraging its "proprietary and third-party online curriculum, software systems, and educational services" to capture the expanding market for virtual and blended public schooling. The company's impressive 17.9% FY YoY revenue growth is significantly undervalued by its current P/E of 14.3 and an exceptionally low PEG ratio of 0.51, indicating substantial upside. The crux of the thesis rests on the market recognizing this disconnect between its strong operational performance and its discounted valuation.
Moat. Stride's durable edge stems from its "integrated package of systems, services, products, and professional expertise" which supports "virtual or blended public school" environments. This comprehensive offering, encompassing proprietary and third-party online curriculum and software systems, creates significant switching costs for school districts and individual students, making it difficult for competitors to dislodge established clients. The deep integration required to "attract, enroll, educate, track progress, support, and facilitate individualized learning" ensures long-term client stickiness.
Risk. Skeptics would point to the significant drop from Stride's 52-week high of $171.17 to its current price of $91.09 as evidence of eroding investor confidence or a re-evaluation of its growth trajectory within the "Education & Training Services" sector. The company's reliance on providing "online curriculum, software systems, and educational services" to public schools makes it vulnerable to shifts in educational policy or funding priorities, which could impact enrollment and contract renewals. A sustained deceleration in revenue growth below 17.9% or a material decline in its 12.2% profit margin would confirm the bear case, signaling a fundamental weakening of its business model.
Horizon. 1-3 yr $104.75 (structural (no analyst coverage)) — fundamentals + valuation re-rating. 5 yr $153.37 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $227.51 if current growth sustains into durable earnings power.
5. ADBE — Adobe Inc. · score 89.2
Software - Application · price $222.65 · 1Y $272.48 · 5Y $398.93 · 10Y $591.79
FCF $10.3b A- · Rev +10.5% B · D/E 0.61 C+ · P/E 12.7x A · PEG 0.60 A-
Why now. Adobe’s subscription‑driven Digital Media platform is a cash‑generating engine that compounds revenue at 10.5% YoY, fuels an industry‑leading ROE of 62.8% and trades at a razor‑thin PEG of 0.6, meaning each dollar of earnings growth is bought at a fraction of the norm. The relentless shift to cloud‑based creative tools locks in recurring revenue and gives the company a clear runway to keep expanding margins, making the compounding engine virtually self‑reinforcing.
Moat. The moat lives in Adobe’s integrated SaaS suite that spans Creative Cloud, Document Cloud and Experience Cloud, creating a sticky ecosystem where designers, marketers and enterprises must stay on‑board to keep workflows seamless. High switching costs and network effects across these segments let Adobe command pricing power, which translates into the extraordinary 62.8% ROE.
Risk. A bear sees Adobe’s growth slowing as the creative‑software market saturates; the 10.5% revenue growth is already modest for a high‑growth name, and a beta of 1.43 amplifies any macro‑downturn, threatening both top‑line momentum and share price. A sustained drop in subscription renewals that pushes revenue growth below 5% would validate the risk and crush the compounding thesis.
Horizon. 1-3 yr $272.48 (analyst consensus (n=33)) — fundamentals + valuation re-rating. 5 yr $398.93 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $591.79 if current growth sustains into durable earnings power.
6. NBIX — Neurocrine Biosciences, Inc. · score 87
Drug Manufacturers - Specialty & Generic · price $180.55 · 1Y $197.95 · 5Y $249.91 · 10Y $320.50
FCF $831m C+ · Rev +21.4% A- · D/E 0.14 B+ · P/E 27.8x B · PEG 0.49 A
Why now. Drug Manufacturers - Specialty & Generic · market cap $18.2b. Trading near 52-week high of $181.00 — momentum setup, limited technical margin of safety. Revenue growing +21%, comfortably above the S&P median. PEG 0.49 — paying under fair value for the growth rate. 27 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $197.95 (implying +10% 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 20% is above 15% — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 124% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Trading within 0% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. 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 $197.95 (analyst consensus (n=27)) — multiple re-rating thesis requires a catalyst. 5 yr $249.91 at ~7% CAGR — dividend + buyback compounding. 10 yr $320.50 if the moat survives secular pressure.
7. ADMA — ADMA Biologics, Inc. · score 86.9
Biotechnology · price $9.27 · 1Y $17.60 · 5Y $25.77 · 10Y $38.23
FCF $108m C · Rev +19.6% B+ · D/E 1.11 C · P/E 13.6x A- · PEG 0.69 A-
Why now. ADMA’s dominant position in the U.S. IVIG market, anchored by its BIVIGAM and ASCENIV products, is fueling a revenue surge of 19.6% YoY while delivering an industry‑beating 32.4% profit margin and a ROE of 42.4%, creating a high‑quality growth engine that should compound as demand for immune‑deficiency therapies expands.
Moat. The company’s integrated plasma collection network and proprietary manufacturing of specialty IVIG give it pricing power and supply security that rivals cannot quickly replicate, while the 42.4% ROE reflects the premium pricing advantage of being a category leader in a niche, life‑saving biologics segment.
Risk. ADMA carries a debt‑to‑equity of 1.11, exposing it to balance‑sheet strain if cash flow falters, and its stock trades near the low end of its 52‑week range (current $9.27 vs. $7.21 low), suggesting the market may already be pricing in a slowdown; a widening D/E or a margin dip below 30% would validate the bear view.
Horizon. 1-3 yr $17.60 (analyst consensus (n=5)) — fundamentals + valuation re-rating. 5 yr $25.77 at ~23% CAGR — compounding case rests on the competitive position widening. 10 yr $38.23 if current growth sustains into durable earnings power.
8. EXLS — ExlService Holdings, Inc. · score 85.7
Information Technology Services · price $27.60 · 1Y $41.75 · 5Y $61.13 · 10Y $90.68
FCF $297m C · Rev +13.6% B+ · D/E 0.67 C+ · P/E 17.6x A- · PEG 0.87 B+
Why now. EXLS is poised to double its earnings as its AI‑powered claims‑management platform captures deeper spend in the $1.5T North American insurance market, driving a 13.6% YoY revenue growth, a 32.3% ROE and delivering $297 m of free cash flow in the latest twelve months. The combination of high‑margin digital operations and a repeatable, data‑intensive service model creates a compounding engine that can sustain double‑digit earnings growth for years to come. The thesis hinges on the continued expansion of AI‑driven automation across insurance and healthcare, which fuels both top‑line growth and cash generation.
Moat. EXLS’s moat stems from its proprietary AI analytics suite embedded in core insurance workflows—claims processing, underwriting support, and policy servicing—where switching costs are steep because clients rely on entrenched data models and integration layers. This lock‑in yields pricing power, reflected in a ROE of 32.3%, and the firm’s deep domain expertise in regulated insurance and healthcare sectors is not easily replicated by generic tech rivals.
Risk. The bear case centers on the concentration of revenue in the insurance segment, which could face underwriting cycles or regulatory headwinds, while the company’s debt‑to‑equity of 0.67 limits financial flexibility if growth stalls. A slowdown in the 13.6% revenue growth rate or a margin dip below the current 11.7% would pressure the 17.6× P/E multiple and could trigger a re‑rating. The key red flag would be a quarterly earnings miss that signals a deceleration in AI‑driven contract wins.
Horizon. 1-3 yr $41.75 (analyst consensus (n=8)) — fundamentals + valuation re-rating. 5 yr $61.13 at ~17% CAGR — compounding case rests on the competitive position widening. 10 yr $90.68 if current growth sustains into durable earnings power.
9. NVDA — NVIDIA Corporation · score 85.6
Semiconductors · price $202.78 · 1Y $301.62 · 5Y $441.60 · 10Y $655.09
FCF $119.1b A · Rev +65.5% A · D/E 0.07 A- · P/E 31.1x B · PEG 0.60 A-
Why now. Semiconductors · market cap $4.9T. 14% off the 52-week high of $236.54. Revenue growing +65% — in hypergrowth territory. PEG 0.60 — 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 +49% 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. $4.9T 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. Trailing P/E 31x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. P/S 19.4x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon. 1-3 yr $301.62 (analyst consensus (n=58)) — fundamentals + valuation re-rating. 5 yr $441.60 at ~17% CAGR — compounding case rests on the competitive position widening. 10 yr $655.09 if current growth sustains into durable earnings power.
10. CPRX — Catalyst Pharmaceuticals, Inc. · score 84.6
Biotechnology · price $31.47 · 1Y $31.67 · 5Y $46.36 · 10Y $68.78
FCF $208m C · Rev +19.8% B+ · D/E 0.00 A · P/E 18.2x A- · PEG 0.92 B+
Why now. Catalyst’s compounding engine is its rare‑disease franchise anchored by Firdapse and Fycompa, which together fuel a profit margin of 37.1% and a revenue growth rate of 19.8% YoY, translating into a free‑cash‑flow generation of $208 m and a ROE of 21.9%. The combination of high‑margin specialty drugs and a debt‑free balance sheet lets the company reinvest earnings into next‑generation indications, keeping the growth trajectory alive. The thesis hinges on the continued market‑share expansion of these approved products in the U.S. rare‑disease space.
Moat. Firdapse’s exclusive FDA approval for Lambert‑Eaton myasthenic syndrome and Fycompa’s unique non‑competitive AMPA‑receptor antagonism create high switching costs for neurologists and patients, while the company’s license agreements lock in premium pricing. This IP‑protected, niche‑patient focus yields pricing power that underpins the 21.9% ROE, a level hard for generic entrants to erode quickly.
Risk. The bear case centers on the concentration risk of relying on two core products; any safety‑signal or competitor launch in LEMS or focal‑onset seizures could compress the 18.2× PE and stall the 19.8% revenue growth. A dip in profit margin below the current 37.1% would signal pricing pressure, and a breach of the debt‑to‑equity floor (currently 0) would raise leverage concerns. A near‑term drop in Firdapse sales would be the concrete trigger that validates the downside.
Horizon. 1-3 yr $31.67 (analyst consensus (n=3)) — fundamentals + valuation re-rating. 5 yr $46.36 at ~8% CAGR — compounding case rests on the competitive position widening. 10 yr $68.78 if current growth sustains into durable earnings power.
11. IT — Gartner, Inc. · score 84.5
Information Technology Services · price $132.69 · 1Y $165.00 · 5Y $241.58 · 10Y $358.36
FCF $1.3b C+ · Rev +3.7% C+ · D/E n/a · P/E 13.1x A · PEG 0.55 A-
Why now. Gartner’s recurring‑revenue Insights subscription engine is the engine of growth, delivering a low‑cost, high‑margin cash engine that fuels the whole business. The stock trades at a modest PE of 13.1x, a razor‑thin PEG of 0.55 and generates $1.3 B of free cash flow on a $8.9 B market cap, proving the business compounds cash faster than its peers. The thesis rests on the durability of the Insights subscription base and its ability to keep expanding the data‑benchmark network.
Moat. The Insights segment locks clients into multi‑year subscriptions for proprietary research, benchmarks and direct expert access, creating high switching costs for CIOs and IT leaders who rely on Gartner’s unique data sets. Gartner’s Conferences add a network effect—executives gather, share, and then renew their advisory contracts—while Consulting deepens relationships, making it costly for rivals to replace the integrated advisory stack.
Risk. Revenue growth has stalled at just 3.7% YoY, far below the double‑digit expansion of other tech‑services peers, and the modest 11.4% profit margin leaves little cushion if clients cut spend. A weak growth outlook combined with a “hold” consensus (2.73/5) could trigger a price correction toward the lower end of the 52‑week range. The bear case materialises if the subscription renewal rate slips, pushing the stock back toward its 52‑week low of $124.25.
Horizon. 1-3 yr $165.00 (analyst consensus (n=13)) — fundamentals + valuation re-rating. 5 yr $241.58 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $358.36 if current growth sustains into durable earnings power.
12. EPAM — EPAM Systems, Inc. · score 83.9
Information Technology Services · price $87.29 · 1Y $142.82 · 5Y $180.31 · 10Y $231.24
FCF $544m C+ · Rev +15.4% B+ · D/E 0.08 B+ · P/E 12.5x A · PEG 0.45 A
Why now. Information Technology Services · market cap $4.6b. Down 61% from 52-week high of $222.53 — deep drawdown territory. Revenue growing +15%, comfortably above the S&P median. PEG 0.45 — paying under fair value for the growth rate. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $142.82 (implying +64% upside).
Moat. ROE 11% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 141% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 61% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 1.43 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 $142.82 (analyst consensus (n=17)) — multiple re-rating thesis requires a catalyst. 5 yr $180.31 at ~16% CAGR — dividend + buyback compounding. 10 yr $231.24 if the moat survives secular pressure.
13. DXCM — DexCom, Inc. · score 83.1
Medical Devices · price $73.02 · 1Y $85.24 · 5Y $124.80 · 10Y $185.13
FCF $1.4b C+ · Rev +15.6% B+ · D/E 0.47 B · P/E 31.3x B · PEG 1.35 B
Why now. Dexcom’s G7 platform is cementing its position as the de‑facto CGM for both Type 1 and insulin‑using Type 2 patients, and that stickiness is fueling a growth engine that will keep compounding. The business is delivering 15.6% YoY revenue growth, 19.3% profit margin and a rock‑solid 31.5% ROE, all on a $1.4 B free‑cash‑flow base, meaning earnings can be reinvested into next‑gen sensors without diluting shareholders. The whole thesis hinges on the G7’s continued market share capture and the expanding “continuous glucose monitoring as a service” model.
Moat. Dexcom’s moat lives in its integrated CGM ecosystem – the G7 sensor, the Share remote‑monitoring platform and the Follow app create a data‑lock that physicians and patients are reluctant to abandon. This end‑to‑end solution, protected by extensive patents and FDA clearances, gives Dexcom pricing power that translates into the >30% ROE, a margin that rivals any pure‑play medical‑device peer.
Risk. The upside is fragile against a wave of next‑generation competitors and potential reimbursement headwinds; a 31.3× forward P/E and a beta of 1.45 already price in premium growth, so any slowdown in G7 adoption or margin erosion would trigger a sharp re‑rating. A breach of the 52‑week low ($54.11) or a dip below the 19% margin would be the red flag that the growth story is unraveling.
Horizon. 1-3 yr $85.24 (analyst consensus (n=25)) — fundamentals + valuation re-rating. 5 yr $124.80 at ~11% 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 $34.50 · 1Y $37.38 · 5Y $54.73 · 10Y $81.20
FCF $293m C · Rev +13.7% B+ · D/E 0.79 B · P/E 18.2x B · PEG 1.08 B+
Why now. CarGurus’ Digital Deal platform is turning its massive shopper‑dealer network into a high‑margin, recurring revenue engine, and that engine is accelerating: revenue is up 13.7% YoY, free cash flow sits at a healthy $293 m (TTM), and a 15.9% profit margin shows pricing power. The combination of a growing online marketplace and sticky dealer subscriptions fuels compounding earnings, and the thesis hinges on Digital Deal scaling across more listings.
Moat. The moat lives in CarGurus’ integrated marketplace that locks dealers into subscription fees and advertising spend while giving shoppers a data‑rich, trusted buying experience. High ROE of 62.9% stems from this lock‑in, as dealers rely on CarGurus’ traffic and the Digital Deal workflow, creating switching costs that competitors can’t replicate quickly without building a comparable audience.
Risk. The bear case centers on the elevated valuation: a forward P/E of 18.2 is high for a growth name, and any slowdown in revenue growth below the current 13.7% YoY would compress margins and pressure the stock. A breach of the 52‑week low ($26.39) would signal that growth is faltering and could trigger a sell‑off.
Horizon. 1-3 yr $37.38 (analyst consensus (n=13)) — fundamentals + valuation re-rating. 5 yr $54.73 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $81.20 if current growth sustains into durable earnings power.
15. VEEV — Veeva Systems Inc. · score 82.2
Health Information Services · price $189.70 · 1Y $244.59 · 5Y $358.11 · 10Y $531.23
FCF $1.7b C+ · Rev +16.3% B+ · D/E 0.01 A- · P/E 33.6x C+ · PEG 0.87 B+
Why now. Veeva’s Vault CRM Suite locks pharma and biotech customers into a single, cloud‑native workflow, fueling a virtuous cycle of recurring revenue; that engine is already delivering 16.3% YoY revenue growth, a 28.4% profit margin, and $1.7 B of free cash flow on a $30.8 B market cap, making the current PEG of 0.87 a rare growth‑at‑reasonable‑price story. The compounding driver is the expanding life‑sciences cloud stack that forces customers to stay, so the thesis rests on continued adoption of Veeva’s data‑rich commercial cloud.
Moat. The moat lives in Veeva’s integrated Data Cloud (OpenData, Link, Compass) that feeds the Vault suite, creating massive switching costs for regulated pharma firms that cannot afford data fragmentation. With a debt‑to‑equity of just 0.01, the company can reinvest cash into product depth, while its 12.9% ROE reflects pricing power from being the de‑facto platform for compliant commercial operations across North America, Europe and APAC.
Risk. The stock trades at a lofty P/E of 33.6 despite a 16.3% growth rate, leaving little room if revenue acceleration stalls or margins compress; a slowdown in new drug launches or a shift to competing cloud platforms would pressure the valuation. The bear flag would be a quarterly revenue growth dip below 10% combined with margin erosion, which would force the price toward the 52‑week low of $148.05.
Horizon. 1-3 yr $244.59 (analyst consensus (n=27)) — fundamentals + valuation re-rating. 5 yr $358.11 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $531.23 if current growth sustains into durable earnings power.
16. RMD — ResMed Inc. · score 81.8
Medical Instruments & Supplies · price $208.45 · 1Y $260.60 · 5Y $381.54 · 10Y $566.00
FCF $1.8b C+ · Rev +9.8% B · D/E 0.13 B+ · P/E 20.1x B+ · PEG 1.28 B
Why now. ResMed is a high-quality compounder poised for continued growth, driven by the persistent demand for its medical devices and cloud-based software in the Sleep and Breathing Health segment. With an impressive profit margin of 27.4% and a robust ROE of 23.4%, the company demonstrates superior operational efficiency and capital allocation. Generating $1.8 billion in free cash flow against a $30.2 billion market cap, ResMed's ability to diagnose, treat, and manage respiratory disorders through integrated solutions ensures sticky customer relationships and a compounding earnings base.
Moat. ResMed's durable edge stems from its specialized focus and category leadership in diagnosing and treating respiratory disorders, particularly sleep apnea. The integration of its medical devices like ApneaLink Air and NightOwl with cloud-based software applications creates significant switching costs for clinics, hospitals, and home users. This comprehensive ecosystem, which measures critical health parameters and manages patient care, underpins its impressive 23.4% ROE by fostering pricing power and recurring revenue streams that are difficult for competitors to replicate.
Risk. The bear case centers on the potential for increased competition or technological disruption within the Sleep and Breathing Health segment, which could pressure ResMed's pricing power and market share. While the P/E TTM of 20.1 is reasonable for a growth company, it still prices in continued expansion, and a deceleration from the current 9.8% revenue growth could trigger a re-rating. A sustained decline in average selling prices for its diagnostic devices or a noticeable contraction in the 27.4% profit margin would confirm the bear thesis.
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.
17. CVSA — Covista Inc. · score 81.4
Education & Training Services · price $131.32 · 1Y $156.25 · 5Y $197.26 · 10Y $252.98
FCF $336m C · Rev +12.9% B+ · D/E 0.54 B+ · P/E 19.1x B · PEG 0.88 B+
Why now. Education & Training Services · market cap $4.5b. 16% 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 +19% 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% is above 15% — 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 ~8% CAGR — dividend + buyback compounding. 10 yr $252.98 if the moat survives secular pressure.
18. META — Meta Platforms, Inc. · score 80.8
Internet Content & Information · price $631.48 · 1Y $828.17 · 5Y $1,046 · 10Y $1,341
FCF $48.3b A · Rev +22.2% A- · D/E 0.36 B+ · P/E 23.0x B · PEG 0.87 B+
Why now. Internet Content & Information · market cap $1.6T. Down 21% from 52-week high of $796.25 — deep drawdown territory. Revenue growing +22%, comfortably above the S&P median. PEG 0.87 — 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 +31% 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. $1.6T 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 ~11% CAGR — dividend + buyback compounding. 10 yr $1,341 if the moat survives secular pressure.
19. QCOM — QUALCOMM Incorporated · score 79.8
Semiconductors · price $191.11 · 1Y $216.55 · 5Y $273.39 · 10Y $350.61
FCF $12.5b A- · Rev +13.7% B+ · D/E 0.56 C+ · P/E 20.6x B+ · PEG 0.59 A-
Why now. Semiconductors · market cap $201.4b. Down 26% from 52-week high of $259.92 — deep drawdown territory. Revenue growing +14%, comfortably above the S&P median. PEG 0.59 — paying under fair value for the growth rate. 31 sell-side analysts rate this a Hold with a mean 1-yr target of $216.55 (implying +13% 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. 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 $216.55 (analyst consensus (n=31)) — multiple re-rating thesis requires a catalyst. 5 yr $273.39 at ~7% CAGR — dividend + buyback compounding. 10 yr $350.61 if the moat survives secular pressure.
20. MELI — MercadoLibre, Inc. · score 79.5
Internet Retail · price $1807.83 · 1Y $2,209 · 5Y $3,234 · 10Y $4,797
FCF $11.8b A- · Rev +34.3% A · D/E 1.70 C+ · P/E 47.8x C · PEG 1.11 B+
Why now. Internet Retail · market cap $91.7b. Down 29% 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 +22% 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. $91.7b 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. Trailing P/E 48x 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 ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $4,797 if current growth sustains into durable earnings power.
21. PODD — Insulet Corporation · score 79.5
Medical Devices · price $158.29 · 1Y $239.42 · 5Y $350.53 · 10Y $519.99
FCF $416m C · Rev +30.7% A · D/E 0.78 C+ · P/E 37.0x C+ · PEG 1.41 B
Why now. Medical Devices · market cap $11.0b. Down 55% 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 $239.42 (implying +51% upside).
Moat. ROE 23% is above 15% — 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 55% 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 37x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $239.42 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $350.53 at ~17% CAGR — compounding case rests on the competitive position widening. 10 yr $519.99 if current growth sustains into durable earnings power.
22. FIVE — Five Below, Inc. · score 78.8
Specialty Retail · price $184.24 · 1Y $260.57 · 5Y $328.97 · 10Y $421.89
FCF $505m C+ · Rev +22.9% A- · D/E 0.86 B · P/E 23.2x B · PEG 0.98 B+
Why now. Specialty Retail · market cap $10.2b. Down 27% 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 $260.57 (implying +41% upside).
Moat. ROE 19% is above 15% — 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 $260.57 (analyst consensus (n=21)) — multiple re-rating thesis requires a catalyst. 5 yr $328.97 at ~12% CAGR — dividend + buyback compounding. 10 yr $421.89 if the moat survives secular pressure.
23. DECK — Deckers Outdoor Corporation · score 78.5
Footwear & Accessories · price $104.26 · 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 B+ · PEG 1.32 B
Why now. Footwear & Accessories · market cap $14.5b. 18% 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 +22% 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.
24. NFLX — Netflix, Inc. · score 77.5
Entertainment · price $75.47 · 1Y $113.71 · 5Y $166.49 · 10Y $246.97
FCF $11.9b A- · Rev +15.9% B+ · D/E 0.54 B · P/E 24.3x B · PEG 1.49 B
Why now. Entertainment · market cap $317.8b. Down 41% from 52-week high of $128.96 — 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 $113.71 (implying +51% 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. $317.8b 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 41% 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 $113.71 (analyst consensus (n=44)) — fundamentals + valuation re-rating. 5 yr $166.49 at ~17% CAGR — compounding case rests on the competitive position widening. 10 yr $246.97 if current growth sustains into durable earnings power.
25. DEO — Diageo plc · score 75.7
Beverages - Wineries & Distilleries · price $80.61 · 1Y $100.43 · 5Y $147.04 · 10Y $218.12
FCF n/a · Rev +4.8% C+ · D/E 1.77 C · P/E 18.6x B+ · PEG 0.80 A-
Why now. Beverages - Wineries & Distilleries · market cap $44.8b. Down 31% from 52-week high of $116.41 — deep drawdown territory. PEG 0.80 — paying under fair value for the growth rate. 7 sell-side analysts rate this a Buy with a mean 1-yr target of $100.43 (implying +25% 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 41% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which.
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. Dividend payout 96% of earnings on a 4.0% yield — distribution coverage is thin; one earnings stumble could force a dividend cut.
Horizon. 1-3 yr $100.43 (analyst consensus (n=7)) — fundamentals + valuation re-rating. 5 yr $147.04 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $218.12 if current growth sustains into durable earnings power.
26. FISV — Fiserv, Inc. · score 75.7
Sector n/a · price $51.65 · 1Y $69.77 · 5Y $88.08 · 10Y $112.96
FCF $4.1b B · Rev +9.3% B · D/E n/a · P/E 8.8x A- · PEG 2.43 C
Why now. Sector n/a · market cap $27.5b. Down 70% from 52-week high of $171.08 — deep drawdown territory. 26 sell-side analysts rate this a Hold with a mean 1-yr target of $69.77 (implying +35% 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 $69.77 (analyst consensus (n=26)) — multiple re-rating thesis requires a catalyst. 5 yr $88.08 at ~11% CAGR — dividend + buyback compounding. 10 yr $112.96 if the moat survives secular pressure.
27. ULTA — Ulta Beauty, Inc. · score 74.8
Specialty Retail · price $460.24 · 1Y $623.58 · 5Y $912.99 · 10Y $1,354
FCF $1.1b C+ · Rev +9.7% B · D/E 0.89 B · P/E 17.3x B+ · PEG 1.57 C+
Why now. Specialty Retail · market cap $19.8b. Down 36% 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 $623.58 (implying +35% 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 36% 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 $623.58 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $912.99 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $1,354 if current growth sustains into durable earnings power.
28. YUMC — Yum China Holdings, Inc. · score 74.8
Restaurants · price $42.31 · 1Y $61.34 · 5Y $89.81 · 10Y $133.23
FCF $931m C+ · Rev +4.4% C+ · D/E 0.38 A- · P/E 16.2x B+ · PEG 1.06 B+
Why now. Restaurants · market cap $14.6b. Down 28% 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 +45% upside).
Moat. ROE 17% is above 15% — 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 ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $133.23 if current growth sustains into durable earnings power.
29. CVNA — Carvana Co. · score 74.4
Auto & Truck Dealerships · price $67.12 · 1Y $92.14 · 5Y $134.91 · 10Y $200.12
FCF $740m C+ · Rev +48.6% A · D/E 1.21 B · P/E 38.8x C · PEG 0.80 A-
Why now. Auto & Truck Dealerships · market cap $73.6b. Down 31% from 52-week high of $97.38 — deep drawdown territory. Revenue growing +49% — in hypergrowth territory. PEG 0.80 — paying under fair value for the growth rate. 21 sell-side analysts rate this a Buy with a mean 1-yr target of $92.14 (implying +37% upside).
Moat. ROE 39% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $73.6b 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. Beta 3.46 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 39x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $92.14 (analyst consensus (n=21)) — fundamentals + valuation re-rating. 5 yr $134.91 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $200.12 if current growth sustains into durable earnings power.
30. EME — EMCOR Group, Inc. · score 73.6
Engineering & Construction · price $783.41 · 1Y $1,000 · 5Y $1,263 · 10Y $1,619
FCF $1.1b C+ · Rev +16.6% B+ · D/E 0.13 A- · P/E 26.3x B · PEG 0.42 A
Why now. Engineering & Construction · market cap $34.9b. 18% off the 52-week high of $951.96. Revenue growing +17%, comfortably above the S&P median. PEG 0.42 — paying under fair value for the growth rate. 7 sell-side analysts rate this a Buy with a mean 1-yr target of $1,000 (implying +28% 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.
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.