This refresh
Data-driven refresh July 11, 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 (5,235 tickers); 1,744 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 90.3
Health Information Services · price $21.77 · 1Y $24.53 · 5Y $35.91 · 10Y $53.27
FCF $326m C · Rev +13.1% B+ · D/E 0.01 A · P/E 22.2x B+ · PEG 0.59 A-
Why now. DOCS’s AI‑powered Ask assistant is turning the Doximity platform into an indispensable clinical workflow hub, fueling a virtuous cycle of engagement and ad spend. Revenue is climbing 13.1% YoY while profit margins sit at a robust 30.4%, delivering a PEG of 0.59 that signals cheap growth. The thesis rests on the platform’s expanding stickiness among U.S. physicians, which should keep compounding revenue and earnings for years.
Moat. Doximity’s moat is its physician‑only network that creates a high switching cost: doctors rely on the personalized newsfeed, peer updates, and the HIPAA‑compliant Ask AI for real‑time evidence, making alternatives unattractive. This lock‑in fuels pricing power, reflected in a 20.6% ROE, as advertisers pay premium to reach a captive, high‑value audience.
Risk. The stock trades at a forward‑looking PE of 22.2 and a beta of 1.29, implying the market is pricing in continued rapid growth; any slowdown in ad revenue or physician adoption would expose an overvalued profile. A pullback in pharma sponsorship or a shift to competing platforms would compress margins, and a breach of the 52‑week low ($17.15) would trigger stop‑loss selling. The bear case is confirmed if quarterly revenue growth falls below 10% and the price slides back toward that low.
Horizon. 1-3 yr $24.53 (analyst consensus (n=19)) — fundamentals + valuation re-rating. 5 yr $35.91 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $53.27 if current growth sustains into durable earnings power.
2. ADBE — Adobe Inc. · score 89.6
Software - Application · price $223.64 · 1Y $272.48 · 5Y $398.93 · 10Y $591.79
FCF $10.3b A- · Rev +11.5% B · D/E 0.61 C+ · P/E 12.8x A · PEG 0.60 A-
Why now. Adobe presents a compelling growth opportunity, with its core Digital Media and Digital Experience segments driving consistent performance in content creation and customer experience management. Despite a market cap of $88.9b, the company trades at a highly attractive 12.8x P/E and 3.5x P/S, while delivering a robust 11.5% revenue growth. The crux is the persistent demand for its essential creative and experience solutions, which continues to compound its free cash flow generation.
Moat. Adobe's formidable moat stems from the deeply embedded nature of its Digital Media products for professionals like photographers and video editors, creating high switching costs and a loyal user base. Its category leadership in both content creation and Digital Experience solutions allows for significant pricing power, evidenced by its exceptional 62.8% ROE. This dominance is further reinforced by its integrated platform, making it difficult for competitors to replicate the full suite of capabilities for enterprises and individual creators.
Risk. The primary risk for Adobe is potential deceleration in its core Digital Media and Digital Experience segments due to increased competition or market saturation, which could impact its 11.5% revenue growth. Its high Beta of 1.43 indicates significant sensitivity to broader market downturns, which could disproportionately impact its stock price. A sustained decline in customer adoption or increased churn rates in its subscription models across its diverse user base would confirm the bear case.
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.
3. INTU — Intuit Inc. · score 89.2
Software - Application · price $274.96 · 1Y $484.73 · 5Y $709.70 · 10Y $1,053
FCF $7.8b B+ · Rev +15.1% B+ · D/E 0.33 B · P/E 16.8x A- · PEG 0.71 A-
Why now. INTU's compounding engine is the seamless lock‑in of SMBs to the QuickBooks‑Mailchimp ecosystem, where each additional product deepens stickiness and drives higher‑margin revenue. The business is growing revenue at 15.1% YoY, converting that into $7.8B of free cash flow and delivering an elite ROE of 22.2%, while a PEG of 0.71 signals the market undervalues this growth. The thesis rests on the continued expansion of the integrated QuickBooks platform across the $1.2T small‑business accounting market.
Moat. QuickBooks locks SMBs into a data‑rich, end‑to‑end financial workflow that includes payroll, payments, financing and now Mailchimp marketing, creating switching costs that competitors cannot replicate quickly. This ecosystem fuels pricing power, reflected in a 21.9% profit margin and a 22.2% ROE, and the low debt‑to‑equity (0.33) lets Intuit reinvest cash without dilution.
Risk. A bear sees the growth premium baked into the stock; the P/E of 16.8, while modest, is high for a company whose revenue growth could plateau if SMB spending tightens or rivals like other SaaS accounting suites win share. A slowdown to sub‑10% revenue growth would compress margins and force the stock toward its 52‑week low of $252.84. The key signal would be a quarterly revenue growth miss coupled with margin compression.
Horizon. 1-3 yr $484.73 (analyst consensus (n=32)) — fundamentals + valuation re-rating. 5 yr $709.70 at ~21% CAGR — compounding case rests on the competitive position widening. 10 yr $1,053 if current growth sustains into durable earnings power.
4. DLO — DLocal Limited · score 88.9
Software - Infrastructure · price $15.19 · 1Y $17.85 · 5Y $26.13 · 10Y $38.77
FCF $413m C · Rev +46.6% A · D/E 0.20 B+ · P/E 23.7x B+ · PEG 0.51 A-
Why now. DLocal Limited is a compelling growth compounder, leveraging its specialized payment processing services to enable global merchants to expand their online presence across diverse markets. With robust revenue growth of 46.6% and an impressive profit margin of 18%, the company is efficiently capturing market share in the complex cross-border and local-to-local payments space. The low PEG ratio of 0.51 further highlights its undervaluation relative to its growth, driven by the persistent demand for localized payment solutions and hundreds of alternative payment methods (APMs) that are critical for global e-commerce expansion.
Moat. DLocal's durable edge stems from its deeply integrated payment processing infrastructure, which supports hundreds of alternative payment methods (APMs) and complex cross-border transactions. This specialized capability creates high switching costs for global merchants, who rely on DLocal's 'dLocal for Platforms' solution to manage their intricate payment ecosystems. The company's exceptional ROE of 34.6% is a direct result of this embeddedness and the pricing power derived from being a critical, hard-to-replace partner in expanding online commerce.
Risk. The primary bear case against DLocal centers on the intensely competitive global payment processing landscape, where larger, more established players could leverage scale to undercut pricing or offer broader suites of services. Despite a reasonable P/E (TTM) of 23.7, any deceleration from its current high revenue growth rate could expose the company to valuation pressure, especially if global merchants consolidate their payment providers. A confirmed bear case would manifest as a significant and sustained drop in DLocal's revenue growth percentage, signaling an inability to maintain its market penetration.
Horizon. 1-3 yr $17.85 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $26.13 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $38.77 if current growth sustains into durable earnings power.
5. NBIX — Neurocrine Biosciences, Inc. · score 87.1
Drug Manufacturers - Specialty & Generic · price $177.11 · 1Y $197.95 · 5Y $289.82 · 10Y $429.93
FCF $831m C+ · Rev +28.6% A- · D/E 0.14 B+ · P/E 27.8x B · PEG 0.50 A
Why now. The bull case hinges on NBIX’s expanding specialty franchise anchored by Orilissa for endometriosis and Oriahnn for uterine fibroids, which together fuel a 28.6% revenue growth and a 21.6% profit margin that outpaces most peers, while a 0.5 PEG signals the market is undervaluing this compounding engine; the thesis rests on the continued rollout of these high‑margin, FDA‑protected therapies that lock in payer and patient stickiness.
Moat. NBIX’s moat derives from its deep IP moat on Orilissa, Oriahnn and the emerging CRENESSITY pipeline, each targeting niche, high‑unmet‑need indications with limited substitutes; this grants pricing power that translates into a 19.6% ROE, a direct result of premium pricing and low‑cost specialty manufacturing, making it hard for generic entrants to erode market share quickly.
Risk. The bear case focuses on the concentration risk of a handful of specialty drugs; a slowdown in Orilissa/Oriahnn uptake would expose a 27.8× P/E that is lofty for a company still reliant on a narrow product set, and any adverse regulatory or reimbursement decision could compress margins and trigger a sell‑off; a sustained drop in revenue growth below 20% would confirm the downside.
Horizon. 1-3 yr $197.95 (analyst consensus (n=27)) — fundamentals + valuation re-rating. 5 yr $289.82 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $429.93 if current growth sustains into durable earnings power.
6. LRN — Stride, Inc. · score 86.7
Education & Training Services · price $91.00 · 1Y $104.65 · 5Y $153.22 · 10Y $227.29
FCF $414m C · Rev +10.9% B · D/E 0.33 A- · P/E 14.2x A- · PEG 0.50 A
Why now. Stride’s integrated online curriculum and school‑management platform locks districts into a single‑vendor ecosystem, fueling a virtuous revenue loop that is already delivering 10.9% YoY revenue growth, a rock‑solid PE of 14.2x on a PE‑G ratio of 0.5, and a free‑cash‑flow haul of $414 m—all while maintaining a 12.2% profit margin. The compounding engine is the expanding adoption of blended public‑school models, and as long as districts keep buying the full stack, that growth trajectory stays intact.
Moat. The moat lives in the end‑to‑end technology stack that ties enrollment, instruction, progress tracking and support together, creating high switching costs for school districts that have already invested in data integration and teacher training. This stickiness translates into an ROE of 18.8%, driven by pricing power in a niche where few competitors can match the breadth of proprietary and third‑party content bundled in one platform.
Risk. The bear case hinges on the reliance on public‑school funding cycles; a slowdown in district budgets would blunt the 10.9% growth rate and compress margins, while the modest PE of 14.2x already reflects market expectations. A dip in enrollment or a shift to cheaper, best‑of‑breed solutions would push the stock toward its 52‑week low of $60.61, confirming the downside thesis.
Horizon. 1-3 yr $104.65 (structural (no analyst coverage)) — fundamentals + valuation re-rating. 5 yr $153.22 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $227.29 if current growth sustains into durable earnings power.
7. EXLS — ExlService Holdings, Inc. · score 85.5
Information Technology Services · price $27.30 · 1Y $41.00 · 5Y $60.03 · 10Y $89.05
FCF $297m C · Rev +13.4% B+ · D/E 0.67 C+ · P/E 17.6x A- · PEG 0.88 B+
Why now. EXLS is poised to ride a secular surge in AI‑driven insurance operations, where its claims‑management and underwriting analytics platform is winning deep‑pocket carriers. The business is compounding on 13.4% YoY revenue growth, a 32.3% ROE that reflects pricing power in high‑margin digital services, and a PEG of 0.88 that signals undervalued growth – the whole thesis hinges on the AI‑enabled insurance stack scaling faster than the market.
Moat. The moat lives in EXLS’s embedded AI analytics across the Insurance segment, where carriers lock in multi‑year contracts for claims processing, premium administration and actuarial services. These contracts create high switching costs and generate a cost advantage that fuels the 32.3% ROE, a margin profile that competitors can’t replicate without building costly data pipelines and regulatory expertise.
Risk. Bears warn that EXLS’s growth could stall if insurers pull back on digital spend, exposing the company to a modest debt load (D/E 0.67) and a P/E of 17.6 that, while reasonable, leaves limited headroom if margin pressure hits the 11.7% profit margin. A slowdown in insurance AI adoption or a margin contraction below 10% would trigger a sell‑off, confirming the bear case.
Horizon. 1-3 yr $41.00 (analyst consensus (n=8)) — fundamentals + valuation re-rating. 5 yr $60.03 at ~17% CAGR — compounding case rests on the competitive position widening. 10 yr $89.05 if current growth sustains into durable earnings power.
8. NVDA — NVIDIA Corporation · score 85.2
Semiconductors · price $210.96 · 1Y $301.62 · 5Y $441.60 · 10Y $655.09
FCF $119.1b A · Rev +70.7% A · D/E 0.07 A- · P/E 32.3x B · PEG 0.63 A-
Why now. Semiconductors · market cap $5.1T. 11% off the 52-week high of $236.54. Revenue growing +71% — in hypergrowth territory. PEG 0.63 — 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 +43% 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. $5.1T 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 32x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. P/S 20.2x 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 ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $655.09 if current growth sustains into durable earnings power.
9. HRMY — Harmony Biosciences Holdings, Inc. · score 85
Biotechnology · price $36.84 · 1Y $44.91 · 5Y $56.70 · 10Y $72.71
FCF $342m C · Rev +20.7% A- · D/E 0.18 B+ · P/E 14.9x A- · PEG 0.69 A-
Why now. Biotechnology · market cap $2.1b. 10% off the 52-week high of $40.87. Revenue growing +21%, comfortably above the S&P median. PEG 0.69 — 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 +22% 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.
10. ADMA — ADMA Biologics, Inc. · score 84.1
Biotechnology · price $9.08 · 1Y $17.60 · 5Y $22.22 · 10Y $28.50
FCF $108m C · Rev +11.0% B · D/E 1.11 C · P/E 13.4x A- · PEG 0.68 A-
Why now. Biotechnology · market cap $2.1b. Down 56% from 52-week high of $20.46 — deep drawdown territory. Revenue growing +11%, comfortably above the S&P median. PEG 0.68 — paying under fair value for the growth rate. 5 sell-side analysts publish a mean 1-yr target of $17.60 (implying +94% 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.
11. CARG — CarGurus, Inc. · score 83.5
Auto & Truck Dealerships · price $34.18 · 1Y $37.38 · 5Y $54.73 · 10Y $81.20
FCF $293m C · Rev +14.0% B+ · D/E 0.79 B · P/E 18.2x B · PEG 1.04 B+
Why now. CarGurus, Inc. presents a compelling growth thesis, leveraging its online automotive platform to connect a large audience of car shoppers with an extensive network of dealers. The company's ability to generate a robust 15.9% profit margin from 14% revenue growth, alongside an exceptional 62.9% ROE, demonstrates its operational efficiency and market leadership. This high-quality compounding is driven by the increasing adoption of its integrated suite of products, particularly the 'Digital Deal' feature, which streamlines the vehicle purchase process online. The crux of the thesis rests on CARG's continued ability to deepen its penetration within the automotive retail ecosystem and expand its dealer subscription fees.
Moat. CARG's durable edge stems from a powerful network effect inherent in its online automotive marketplace, which effectively connects a vast pool of car shoppers with an extensive network of dealers. This two-sided platform creates significant switching costs for both consumers and dealers, who benefit from the liquidity and reach the platform provides. The company's exceptional 62.9% ROE is a direct result of this category leadership and pricing power, allowing it to extract recurring 'dealer subscription fees' and 'advertising from auto manufacturers' from its established user base without heavy capital expenditure, making it difficult for new entrants to replicate quickly.
Risk. The primary bear case against CARG centers on the cyclical nature of the 'Auto & Truck Dealerships' sector, which could significantly impact its core revenue streams from dealer subscriptions and advertising. While current revenue growth is 14%, a sustained downturn in vehicle sales or consumer spending could lead to a sharp deceleration, challenging the current 18.2 P/E multiple. The high beta of 1.18 suggests CARG is more susceptible to market volatility. A concrete signal confirming the bear case would be a significant, sustained contraction in CARG's 'extensive network of dealers' or a material decline in average 'dealer subscription fees' per dealer.
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.
12. EPAM — EPAM Systems, Inc. · score 83.3
Information Technology Services · price $83.89 · 1Y $140.53 · 5Y $177.42 · 10Y $227.53
FCF $544m C+ · Rev +14.2% B+ · D/E 0.08 B+ · P/E 12.5x A · PEG 0.44 A
Why now. Information Technology Services · market cap $4.4b. Down 62% from 52-week high of $222.53 — deep drawdown territory. Revenue growing +14%, comfortably above the S&P median. PEG 0.44 — paying under fair value for the growth rate. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $140.53 (implying +68% 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 62% 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 $140.53 (analyst consensus (n=17)) — multiple re-rating thesis requires a catalyst. 5 yr $177.42 at ~16% CAGR — dividend + buyback compounding. 10 yr $227.53 if the moat survives secular pressure.
13. IT — Gartner, Inc. · score 82.9
Information Technology Services · price $133.24 · 1Y $165.00 · 5Y $208.31 · 10Y $267.15
FCF $1.3b C+ · Rev +2.3% C · D/E n/a · P/E 13.2x A · PEG 0.54 A-
Why now. Information Technology Services · market cap $8.9b. Down 65% from 52-week high of $375.84 — deep drawdown territory. PEG 0.54 — 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 +24% 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 65% 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.
14. DXCM — DexCom, Inc. · score 82.8
Medical Devices · price $74.96 · 1Y $85.24 · 5Y $124.80 · 10Y $185.13
FCF $1.4b C+ · Rev +16.1% B+ · D/E 0.47 B · P/E 32.2x C+ · PEG 1.38 B
Why now. Medical Devices · market cap $28.9b. 17% off the 52-week high of $89.98. 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 +14% 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 32x 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 ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $185.13 if current growth sustains into durable earnings power.
15. RMD — ResMed Inc. · score 82.6
Medical Instruments & Supplies · price $203.87 · 1Y $257.07 · 5Y $376.37 · 10Y $558.32
FCF $1.8b C+ · Rev +10.3% B · D/E 0.13 B+ · P/E 19.6x A- · PEG 1.21 B
Why now. Medical Instruments & Supplies · market cap $29.6b. Down 31% from 52-week high of $293.81 — deep drawdown territory. Revenue growing +10%, comfortably above the S&P median. 15 sell-side analysts rate this a Buy with a mean 1-yr target of $257.07 (implying +26% 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. 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.
Horizon. 1-3 yr $257.07 (analyst consensus (n=15)) — fundamentals + valuation re-rating. 5 yr $376.37 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $558.32 if current growth sustains into durable earnings power.
16. VEEV — Veeva Systems Inc. · score 82.4
Health Information Services · price $190.12 · 1Y $244.59 · 5Y $358.11 · 10Y $531.23
FCF $1.7b C+ · Rev +16.2% B+ · D/E 0.01 A- · P/E 33.6x C+ · PEG 0.85 B+
Why now. Health Information Services · market cap $30.9b. Down 39% from 52-week high of $310.50 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. PEG 0.85 — 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 +29% 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 39% 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 ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $531.23 if current growth sustains into durable earnings power.
17. PRDO — Perdoceo Education Corporation · score 80.1
Education & Training Services · price $35.71 · 1Y $38.57 · 5Y $48.69 · 10Y $62.44
FCF $225m C · Rev +17.7% B+ · D/E 0.12 A- · P/E 13.6x A- · PEG 0.75 A-
Why now. Education & Training Services · market cap $2.2b. 7% off the 52-week high of $38.50. Revenue growing +18%, comfortably above the S&P median. PEG 0.75 — paying under fair value for the growth rate.
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 17% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 132% 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 $38.57 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $48.69 at ~6% CAGR — dividend + buyback compounding. 10 yr $62.44 if the moat survives secular pressure.
18. PODD — Insulet Corporation · score 79.5
Medical Devices · price $161.28 · 1Y $238.67 · 5Y $349.43 · 10Y $518.36
FCF $416m C · Rev +31.9% A · D/E 0.78 C+ · P/E 37.8x C+ · PEG 1.39 B
Why now. Medical Devices · market cap $11.2b. Down 55% from 52-week high of $354.88 — deep drawdown territory. Revenue growing +32% — in hypergrowth territory. 24 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $238.67 (implying +48% 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 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 38x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $238.67 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $349.43 at ~17% CAGR — compounding case rests on the competitive position widening. 10 yr $518.36 if current growth sustains into durable earnings power.
19. MELI — MercadoLibre, Inc. · score 79.1
Internet Retail · price $1852.22 · 1Y $2,209 · 5Y $3,234 · 10Y $4,797
FCF $11.8b A- · Rev +36.4% A · D/E 1.70 C+ · P/E 48.8x C · PEG 1.12 B+
Why now. Internet Retail · market cap $93.9b. Down 27% from 52-week high of $2548.50 — deep drawdown territory. Revenue growing +36% — in hypergrowth territory. 24 sell-side analysts rate this a Buy with a mean 1-yr target of $2,209 (implying +19% 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. $93.9b 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. Trailing P/E 49x 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.
20. FIVE — Five Below, Inc. · score 78.6
Specialty Retail · price $189.39 · 1Y $260.33 · 5Y $328.66 · 10Y $421.50
FCF $505m C+ · Rev +25.9% A- · D/E 0.86 B · P/E 23.9x B · PEG 0.98 B+
Why now. Specialty Retail · market cap $10.5b. Down 25% from 52-week high of $251.63 — deep drawdown territory. Revenue growing +26% — in hypergrowth territory. 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 $260.33 (implying +37% 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 $260.33 (analyst consensus (n=21)) — multiple re-rating thesis requires a catalyst. 5 yr $328.66 at ~12% CAGR — dividend + buyback compounding. 10 yr $421.50 if the moat survives secular pressure.
21. DECK — Deckers Outdoor Corporation · score 78.5
Footwear & Accessories · price $105.99 · 1Y $126.86 · 5Y $185.73 · 10Y $275.52
FCF $1.1b C+ · Rev +9.8% B · D/E 0.15 A · P/E 15.1x B+ · PEG 1.27 B
Why now. Footwear & Accessories · market cap $14.7b. 16% 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 +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 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. 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 $126.86 (analyst consensus (n=21)) — fundamentals + valuation re-rating. 5 yr $185.73 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $275.52 if current growth sustains into durable earnings power.
22. META — Meta Platforms, Inc. · score 77.9
Internet Content & Information · price $669.21 · 1Y $827.91 · 5Y $1,045 · 10Y $1,340
FCF $48.3b A · Rev +26.2% A- · D/E 0.36 B+ · P/E 24.3x B · PEG 0.87 B+
Why now. Internet Content & Information · market cap $1.7T. 16% off the 52-week high of $796.25. Revenue growing +26% — in hypergrowth territory. 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 $827.91 (implying +24% 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. $1.7T 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. 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 $827.91 (analyst consensus (n=58)) — multiple re-rating thesis requires a catalyst. 5 yr $1,045 at ~9% CAGR — dividend + buyback compounding. 10 yr $1,340 if the moat survives secular pressure.
23. NFLX — Netflix, Inc. · score 77.6
Entertainment · price $73.37 · 1Y $113.15 · 5Y $165.66 · 10Y $245.74
FCF $11.9b A- · Rev +16.7% B+ · D/E 0.54 B · P/E 23.7x B · PEG 1.48 B
Why now. Entertainment · market cap $308.9b. Down 43% from 52-week high of $127.75 — deep drawdown territory. Revenue growing +17%, comfortably above the S&P median. 44 sell-side analysts rate this a Buy with a mean 1-yr target of $113.15 (implying +54% 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. $308.9b 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 43% 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 $113.15 (analyst consensus (n=44)) — fundamentals + valuation re-rating. 5 yr $165.66 at ~18% CAGR — compounding case rests on the competitive position widening. 10 yr $245.74 if current growth sustains into durable earnings power.
24. MU — Micron Technology, Inc. · score 76.8
Semiconductors · price $979.30 · 1Y $1,486 · 5Y $1,876 · 10Y $2,406
FCF $26.2b A · Rev +167.0% A · D/E 0.06 A- · P/E 22.4x B+ · PEG 0.14 A
Why now. Semiconductors · market cap $1.1T. Down 22% from 52-week high of $1255.00 — deep drawdown territory. Revenue growing +167% — in hypergrowth territory. PEG 0.14 — paying under fair value for the growth rate. 42 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $1,486 (implying +52% upside).
Moat. Net margin 56% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 50% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $1.1T 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 2.14 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 12.3x 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 $1,486 (analyst consensus (n=42)) — multiple re-rating thesis requires a catalyst. 5 yr $1,876 at ~14% CAGR — dividend + buyback compounding. 10 yr $2,406 if the moat survives secular pressure.
25. YUMC — Yum China Holdings, Inc. · score 76.4
Restaurants · price $43.02 · 1Y $61.34 · 5Y $89.81 · 10Y $133.23
FCF $931m C+ · Rev +6.7% C+ · D/E 0.38 A- · P/E 16.5x B+ · PEG 1.07 B+
Why now. Restaurants · market cap $14.8b. Down 26% 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 +43% 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 ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $133.23 if current growth sustains into durable earnings power.
26. FISV — Fiserv, Inc. · score 75.9
Sector n/a · price $50.45 · 1Y $67.89 · 5Y $85.71 · 10Y $109.92
FCF $4.1b B · Rev +9.3% B · D/E n/a · P/E 8.6x A- · PEG 2.37 C
Why now. Sector n/a · market cap $26.9b. Down 70% from 52-week high of $168.93 — deep drawdown territory. 27 sell-side analysts rate this a Hold with a mean 1-yr target of $67.89 (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 $67.89 (analyst consensus (n=27)) — multiple re-rating thesis requires a catalyst. 5 yr $85.71 at ~11% CAGR — dividend + buyback compounding. 10 yr $109.92 if the moat survives secular pressure.
27. DEO — Diageo plc · score 75.7
Beverages - Wineries & Distilleries · price $82.03 · 1Y $101.14 · 5Y $148.08 · 10Y $219.67
FCF n/a · Rev +4.8% C+ · D/E 1.77 C · P/E 18.9x B+ · PEG 0.79 A-
Why now. Beverages - Wineries & Distilleries · market cap $45.6b. Down 30% from 52-week high of $116.41 — deep drawdown territory. PEG 0.79 — paying under fair value for the growth rate. 7 sell-side analysts rate this a Buy with a mean 1-yr target of $101.14 (implying +23% 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. 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 $101.14 (analyst consensus (n=7)) — fundamentals + valuation re-rating. 5 yr $148.08 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $219.67 if current growth sustains into durable earnings power.
28. ULTA — Ulta Beauty, Inc. · score 75.6
Specialty Retail · price $469.20 · 1Y $623.58 · 5Y $912.99 · 10Y $1,354
FCF $1.1b C+ · Rev +11.3% B · D/E 0.89 B · P/E 17.6x B+ · PEG 1.58 C+
Why now. Specialty Retail · market cap $20.2b. Down 34% from 52-week high of $714.97 — deep drawdown territory. Revenue growing +11%, comfortably above the S&P median. 24 sell-side analysts rate this a Buy with a mean 1-yr target of $623.58 (implying +33% 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 34% 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 ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $1,354 if current growth sustains into durable earnings power.
29. EME — EMCOR Group, Inc. · score 74.1
Engineering & Construction · price $781.78 · 1Y $1,000 · 5Y $1,263 · 10Y $1,619
FCF $1.1b C+ · Rev +18.3% B+ · D/E 0.13 A · P/E 26.2x B · PEG 0.41 A
Why now. Engineering & Construction · market cap $34.8b. 18% off the 52-week high of $951.96. Revenue growing +18%, comfortably above the S&P median. PEG 0.41 — 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.
30. ALLE — Allegion plc · score 73.7
Security & Protection Services · price $136.63 · 1Y $165.18 · 5Y $241.84 · 10Y $358.76
FCF $683m C+ · Rev +8.9% B · D/E 1.06 C+ · P/E 18.7x A- · PEG 2.08 C
Why now. Security & Protection Services · market cap $11.7b. Down 25% from 52-week high of $183.11 — deep drawdown territory. 11 sell-side analysts rate this a Buy with a mean 1-yr target of $165.18 (implying +21% upside).
Moat. Net margin 15% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 30% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 108% 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 $165.18 (analyst consensus (n=11)) — fundamentals + valuation re-rating. 5 yr $241.84 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $358.76 if current growth sustains into durable earnings power.
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.