This refresh
Data-driven refresh July 23, 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 (5,227 tickers); 1,466 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 90.7
Health Information Services · price $20.45 · 1Y $24.56 · 5Y $35.95 · 10Y $53.33
FCF $326m C · Rev +13.1% B+ · D/E 0.01 A · P/E 20.9x B+ · PEG 0.59 A-
Why now. DOCS’s AI‑driven workflow tool Ask is cementing the platform as the go‑to clinical knowledge hub, fueling a 13.1% YoY revenue growth while preserving a 30.4% profit margin and a 20.6% ROE. Our Bull Rankings model rates the stock 90.7/100 on Quality‑Growth, with Growth as the strongest pillar, confirming that the compounding engine – a expanding physician network monetized through premium AI services and sponsored content – will keep accelerating earnings. The thesis hinges on the continued adoption of Ask and the platform’s ability to monetize its high‑engagement audience at premium rates.
Moat. DOCS locks in U.S. physicians with a unique, HIPAA‑compliant ecosystem that blends a personalized newsfeed, AI assistant Ask, and workflow tools like Scribe, creating high switching costs because clinicians rely on the platform for daily decision‑making. The 20.6% ROE reflects pricing power derived from category leadership in physician‑focused digital media, where advertisers and pharma pay a premium to reach a captive, data‑rich audience that rivals can’t replicate quickly.
Risk. The stock trades at a forward P/E of 20.9, far above the 1% annual free‑cash‑flow growth implied by our reverse DCF, suggesting the market is pricing in unrealistic optimism versus the actual 13.1% revenue growth. A beta of 1.29 adds market‑risk volatility, and the model’s weakest pillar – Value – flags that the current price may be stretched. A sustained slowdown in physician‑ad spend or a successful competitor’s AI offering would force the valuation down, confirming the bear case.
Horizon. 1-3 yr $24.56 (analyst consensus (n=18)) — fundamentals + valuation re-rating. 5 yr $35.95 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $53.33 if current growth sustains into durable earnings power.
2. ADBE — Adobe Inc. · score 89.6
Software - Application · price $212.17 · 1Y $269.61 · 5Y $394.73 · 10Y $585.56
FCF $10.3b A- · Rev +11.5% B · D/E 0.61 C+ · P/E 12.1x A · PEG 0.62 A-
Why now. Adobe's current valuation presents a compelling opportunity, as our model's reverse DCF implies a deeply pessimistic ~-4%/yr free-cash-flow decline over the next decade, despite the company's robust 11.5% FY YoY revenue growth. This disconnect, highlighted by a 12.1 P/E and a 0.62 PEG ratio, ignores the enduring demand for its Digital Media content creation tools and the integrated Digital Experience platform. With a Bull Rankings quality-growth score of 89.6/100, anchored by a strong Quality pillar (92), the market is mispricing a high-quality compounder that continues to generate $10.3 billion in free cash flow annually.
Moat. Adobe's exceptional 62.8% ROE is a direct result of its deeply entrenched position in professional workflows, particularly within its Digital Media segment where products for photographers, video editors, and graphic designers create high switching costs. The integrated platform offered by its Digital Experience segment further locks in brands and businesses, providing mission-critical solutions from analytics to commerce that are difficult and costly to replace. This deep integration and essential nature of its tools grant Adobe significant pricing power and ensure durable high returns on capital.
Risk. The primary bear case centers on decelerating growth and intense competition within both the Digital Media and Digital Experience segments, which could erode Adobe's premium valuation. Our model's weakest pillar, Growth (87/100), highlights this concern, suggesting that the 11.5% FY YoY revenue growth may not be sustainable in the face of emerging alternatives for content creators and marketing platforms. A sustained decline in profit margin from the current 28.7% or a further drop in the analyst consensus 1-year target below $269.61 would confirm that competitive pressures are indeed impacting Adobe's long-term earnings power.
Horizon. 1-3 yr $269.61 (analyst consensus (n=34)) — fundamentals + valuation re-rating. 5 yr $394.73 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $585.56 if current growth sustains into durable earnings power.
3. DLO — DLocal Limited · score 89.1
Software - Infrastructure · price $14.08 · 1Y $17.85 · 5Y $26.13 · 10Y $38.77
FCF $413m C · Rev +46.6% A · D/E 0.20 B+ · P/E 22.0x B+ · PEG 0.47 A
Why now. DLocal’s pay‑in platform for global merchants is exploding, delivering 46.6% FY revenue growth, 18% profit margin and $413 m free cash flow while the Bull Rankings model flags a perfect Growth pillar (100). That combination of soaring top‑line and high‑margin cash conversion makes the business a rare high‑quality compounder, and the whole thesis hinges on the continuation of this payment‑processing tailwind.
Moat. The moat lives in DLocal’s end‑to‑end cross‑border payment suite – from international cards to hundreds of alternative methods – which locks merchants into a single, compliant gateway and creates costly switching. Its ROE of 34.6% stems from pricing power in a fragmented market where few rivals can match the breadth of local‑to‑local and platform solutions DLocal offers.
Risk. The biggest headwind is shareholder dilution, a red flag in our model, combined with a reverse‑DCF that assumes a negative -7%/yr free‑cash‑flow growth for a decade – a stark contrast to the current 46.6% revenue surge. If growth stalls or the dilution erodes per‑share earnings, the P/E of 22 becomes unjustified and the stock could tumble toward its 52‑week low.
Horizon. 1-3 yr $17.85 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $26.13 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $38.77 if current growth sustains into durable earnings power.
4. INTU — Intuit Inc. · score 88.7
Software - Application · price $281.53 · 1Y $462.53 · 5Y $677.20 · 10Y $1,005
FCF $7.8b B+ · Rev +15.1% B+ · D/E 0.33 B · P/E 17.2x A- · PEG 0.75 A-
Why now. Intuit represents a compelling growth opportunity, with its robust Global Business Solutions segment, including QuickBooks and Mailchimp, driving a sticky ecosystem for small and mid-market businesses. Our model highlights Growth as its strongest pillar (95/100), reflecting a business compounding revenue at 15.1% year-over-year with a healthy 21.9% profit margin. Trading at a 17.2 P/E and a PEG ratio of 0.75, the market is pricing in pessimism, making the current valuation highly attractive for a company with such entrenched financial management and marketing automation services. The crux is the enduring necessity and expanding feature set of its core business solutions, ensuring persistent demand and pricing power.
Moat. Intuit's durable edge stems from the high switching costs inherent in its financial management and payroll solutions, particularly QuickBooks services for small and mid-market businesses. Once embedded in a company's operations, migrating accounting, payroll, and payment processing systems is a significant undertaking, creating a sticky customer base. This operational integration, combined with the comprehensive ecosystem of QuickBooks and Mailchimp, fuels an impressive 22.2% Return on Equity, driven by pricing power derived from its category leadership and essential service offerings.
Risk. Skeptics argue that Intuit's current valuation, despite recent declines, still faces significant headwinds, particularly given our model's reverse DCF implying a sustained -6% annual free-cash-flow growth for the next decade. This starkly contrasts with its reported 15.1% revenue growth, suggesting the market anticipates substantial margin compression or a severe deceleration in its core Global Business Solutions segment, which includes QuickBooks and Mailchimp. Our model's weakest pillar, Quality (86/100), further hints at potential competitive pressures or operational inefficiencies compared to peers. A concrete signal confirming the bear case would be a sustained decline in new customer acquisition or average revenue per user across its key platforms, leading to further FCF erosion.
Horizon. 1-3 yr $462.53 (analyst consensus (n=33)) — fundamentals + valuation re-rating. 5 yr $677.20 at ~19% CAGR — compounding case rests on the competitive position widening. 10 yr $1,005 if current growth sustains into durable earnings power.
5. NBIX — Neurocrine Biosciences, Inc. · score 87.1
Drug Manufacturers - Specialty & Generic · price $174.15 · 1Y $202.56 · 5Y $296.57 · 10Y $439.94
FCF $831m C+ · Rev +28.6% A- · D/E 0.14 B+ · P/E 26.8x B · PEG 0.51 A-
Why now. NBIX is poised to dominate the high‑unmet‑need movement‑disorder market thanks to INGREZZA, the only FDA‑approved therapy for tardive dyskinesia, which is fueling a 28.6% YoY revenue growth and a 21.6% profit margin. The business’s PE of 26.8x and PEG of 0.51 already price in a 12% free‑cash‑flow growth runway, but the real catalyst is the expanding indication set for INGREZZA and Orilissa, which together drive a compounding earnings engine that our model’s 100‑point Growth pillar (87.1 overall score) tells us will persist. The thesis rests on the ability to keep scaling these niche, high‑margin products.
Moat. NBIX’s moat comes from its deep IP portfolio around INGREZZA and Orilissa, which lock in neurologists and gynecologists with a product that has no direct generic competitor in the US and requires a complex manufacturing process. This translates into a ROE of 19.6%—near‑industry‑leading—derived from pricing power in rare‑disease niches and a low debt‑to‑equity of 0.14, giving the company financial flexibility to reinvest in pipeline candidates without diluting shareholders.
Risk. The bear case hinges on the risk that revenue growth stalls as the market for tardive dyskinesia saturates and new competitors launch alternative therapies, which would pressure the current PE of 26.8x and compress margins below the 21.6% level. A slowdown in the 28.6% YoY growth trajectory would also make the reverse‑DCF implied 12% FCF growth look overly optimistic. A miss on upcoming Phase III readouts for NBI‑1076986 would be the concrete trigger that validates this downside.
Horizon. 1-3 yr $202.56 (analyst consensus (n=28)) — fundamentals + valuation re-rating. 5 yr $296.57 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $439.94 if current growth sustains into durable earnings power.
6. NVDA — NVIDIA Corporation · score 86
Semiconductors · price $208.76 · 1Y $302.83 · 5Y $443.37 · 10Y $657.71
FCF $119.1b A · Rev +70.7% A · D/E 0.07 A- · P/E 32.0x B · PEG 0.57 A-
Why now. NVIDIA’s Compute & Networking data‑center AI platform is the engine of a 70.7% YoY revenue surge, fueling a $119.1 B free‑cash‑flow haul and a staggering 81.7% ROE that compounds earnings at breakneck speed; the market’s 49% implied FCF growth over ten years is already priced in, so the upside hinges on sustaining this AI‑driven compounding.
Moat. The AI‑accelerated GPUs in the Compute & Networking segment lock enterprise customers into a proprietary software stack and massive data‑center deployments, creating switching costs that competitors can’t match; the 81.7% ROE reflects pricing power from category leadership in AI infrastructure, while the low 0.07 debt‑to‑equity ratio lets NVIDIA reinvest cash without leverage constraints.
Risk. A 2.21 beta and a 32× PE make the stock highly sensitive to market swings, and the reverse‑DCF’s 49% FCF growth assumption exceeds the already blistering 70.7% revenue growth, meaning any slowdown or margin compression would expose the valuation; a breach of the 52‑week low ($164.07) would confirm the bear case.
Horizon. 1-3 yr $302.83 (analyst consensus (n=58)) — fundamentals + valuation re-rating. 5 yr $443.37 at ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $657.71 if current growth sustains into durable earnings power.
7. EXLS — ExlService Holdings, Inc. · score 85.5
Information Technology Services · price $26.88 · 1Y $40.13 · 5Y $58.75 · 10Y $87.15
FCF $297m C · Rev +13.4% B+ · D/E 0.67 C+ · P/E 17.1x A- · PEG 0.88 B+
Why now. EXLS’s AI‑driven claims management and underwriting automation platform is scaling fast in the Insurance segment, delivering 13.4% YoY revenue growth, a solid 11.7% profit margin and a free‑cash‑flow generation of $297 M – all on a modest PE of 17.1x. Our Bull Rankings model gives the stock an 85.5/100 quality‑growth score, with Growth as the strongest pillar, meaning the business is compounding earnings faster than peers, while the implied -2% FCF growth from the reverse‑DCF shows the market is already over‑optimistic, leaving upside for a disciplined buyer. The thesis rests on the continued expansion of AI‑enabled insurance services, which should keep the compounding engine humming.
Moat. The company’s deep integration into insurers’ core workflows—claims processing, premium administration and actuarial analytics—creates high switching costs, as clients rely on EXLS’s proprietary data pipelines and AI models that are costly to replicate. This lock‑in fuels the 32.3% ROE, reflecting pricing power derived from being the preferred digital‑operations partner across North America and Europe.
Risk. A bear would point to the 0.67 debt‑to‑equity ratio combined with a sub‑2% implied FCF growth, indicating that any slowdown in insurance spend or a rise in interest rates could strain cash generation and force the firm to fund buybacks with debt. If the revenue growth dips below the current 13.4% YoY pace, the high 17.1x PE becomes unjustified and the stock could tumble toward its 52‑week low of $24.85.
Horizon. 1-3 yr $40.13 (analyst consensus (n=8)) — fundamentals + valuation re-rating. 5 yr $58.75 at ~17% CAGR — compounding case rests on the competitive position widening. 10 yr $87.15 if current growth sustains into durable earnings power.
8. TTD — The Trade Desk, Inc. · score 85.2
Advertising Agencies · price $16.79 · 1Y $24.32 · 5Y $35.61 · 10Y $52.82
FCF $842m C+ · Rev +15.5% B+ · D/E 0.17 A- · P/E 19.1x B · PEG 0.87 B+
Why now. TTD is the cleanest way to play the unstoppable shift to programmatic CTV and omnichannel advertising, and the numbers confirm the compounding: 15.5% revenue growth, with 14.6% profit margins that fund aggressive reinvestment without diluting shareholders. The Trade Desk’s platform unifies CTV, display, audio, and native ads across devices—televisions, streaming sticks, mobile, and digital-out-of-home—locking in advertisers who need cross-channel reach at scale. The crux is that the $842M in TTM free cash flow is being deployed into buybacks, not speculative capex, which shrinks the float into a growing earnings base.
Moat. The moat is the data flywheel: advertisers feed campaign performance back into the platform, which refines targeting and attribution, creating a self-reinforcing loop that competitors can’t replicate quickly. ROE of 17.6% is driven by pricing power in CTV—where The Trade Desk is the category leader—and the ability to monetize first-party data without relying on walled gardens. Switching costs are high because campaigns span multiple channels and devices; once an advertiser’s data and budgets are integrated into the platform, migrating to a rival would mean retooling entire workflows.
Risk. The bear case is that the stock’s P/E of 19.1x already prices in perfection, and our model flags the weakest pillar: Value, with a score of 76/100. The reverse-DCF implies -7% annual free-cash-flow growth for a decade, which strains credibility against 15.5% revenue growth and 14.6% margins. The concrete signal to confirm the bear case? A deceleration in CTV ad spend growth below 10% YoY, which would break the compounding thesis.
Horizon. 1-3 yr $24.32 (analyst consensus (n=30)) — fundamentals + valuation re-rating. 5 yr $35.61 at ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $52.82 if current growth sustains into durable earnings power.
9. ADMA — ADMA Biologics, Inc. · score 85
Biotechnology · price $8.37 · 1Y $17.00 · 5Y $24.89 · 10Y $36.92
FCF $108m C · Rev +11.0% B · D/E 1.11 C · P/E 12.3x A · PEG 0.63 A-
Why now. ADMA Biologics represents a compelling growth opportunity, with our model's "Growth" pillar scoring an impressive 90/100, its strongest pillar. The company's focus on specialty plasma-derived biologics for immune deficiencies, such as BIVIGAM and ASCENIV for PI, is driving robust expansion, evidenced by 11% FY YoY revenue growth and a stellar 32.4% profit margin. With a PEG ratio of 0.63 and a TTM P/E of 12.3, the stock appears significantly undervalued for its growth trajectory, especially as our reverse DCF implies only ~2%/yr free-cash-flow growth, suggesting substantial pessimism is priced in despite strong fundamentals.
Moat. The company's durable edge stems from its vertically integrated ADMA BioManufacturing and Plasma Collection Centers segments, which provide critical control over the supply chain for its complex plasma-derived biologics like Nabi-HB for Hepatitis B. This specialized market has high barriers to entry due to stringent regulatory requirements and manufacturing expertise. ADMA's exceptional 42.4% ROE is a direct result of this strategic integration and the pricing power derived from its essential, high-demand product portfolio.
Risk. Despite strong growth, our model flags "Quality" as ADMA's weakest pillar at 81/100, and signals "Earnings outpace cash (caution)," indicating a potential disconnect between reported profits and underlying cash generation. This could become problematic given the capital-intensive nature of plasma collection and biomanufacturing, especially with a debt-to-equity ratio of 1.11. A sustained deceleration in free cash flow relative to reported earnings, or an inability to efficiently convert earnings into cash, would confirm the bear case.
Horizon. 1-3 yr $17.00 (analyst consensus (n=5)) — fundamentals + valuation re-rating. 5 yr $24.89 at ~24% CAGR — compounding case rests on the competitive position widening. 10 yr $36.92 if current growth sustains into durable earnings power.
10. HRMY — Harmony Biosciences Holdings, Inc. · score 84.9
Biotechnology · price $35.80 · 1Y $44.91 · 5Y $56.70 · 10Y $72.71
FCF $342m C · Rev +20.7% A- · D/E 0.18 B+ · P/E 14.4x A- · PEG 0.67 A-
Why now. Biotechnology · market cap $2.1b. 12% off the 52-week high of $40.87. Revenue growing +21%, comfortably above the S&P median. PEG 0.67 — 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 +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 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 ~10% CAGR — dividend + buyback compounding. 10 yr $72.71 if the moat survives secular pressure.
11. CARG — CarGurus, Inc. · score 83.3
Auto & Truck Dealerships · price $32.96 · 1Y $37.77 · 5Y $55.30 · 10Y $82.03
FCF $293m C · Rev +14.0% B+ · D/E 0.79 B · P/E 17.3x B+ · PEG 1.07 B+
Why now. Auto & Truck Dealerships · market cap $3.0b. 16% off the 52-week high of $39.42. Revenue growing +14%, comfortably above the S&P median. 13 sell-side analysts rate this a Buy with a mean 1-yr target of $37.77 (implying +15% 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 63% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 196% 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 $37.77 (analyst consensus (n=13)) — fundamentals + valuation re-rating. 5 yr $55.30 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $82.03 if current growth sustains into durable earnings power.
12. DXCM — DexCom, Inc. · score 83.1
Medical Devices · price $70.48 · 1Y $85.75 · 5Y $125.55 · 10Y $186.24
FCF $1.4b C+ · Rev +16.1% B+ · D/E 0.47 B · P/E 30.2x B · PEG 1.39 B
Why now. Medical Devices · market cap $27.2b. Down 22% from 52-week high of $89.98 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. 24 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $85.75 (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 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 30x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $85.75 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $125.55 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $186.24 if current growth sustains into durable earnings power.
13. PRDO — Perdoceo Education Corporation · score 83.1
Education & Training Services · price $30.84 · 1Y $33.31 · 5Y $42.05 · 10Y $53.93
FCF $225m C · Rev +17.7% B+ · D/E 0.12 A- · P/E 11.8x A- · PEG 0.65 A-
Why now. Education & Training Services · market cap $1.9b. 20% off the 52-week high of $38.50. Revenue growing +18%, comfortably above the S&P median. PEG 0.65 — 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 $33.31 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $42.05 at ~6% CAGR — dividend + buyback compounding. 10 yr $53.93 if the moat survives secular pressure.
14. RMD — ResMed Inc. · score 83.1
Medical Instruments & Supplies · price $191.89 · 1Y $247.93 · 5Y $363.00 · 10Y $538.48
FCF $1.8b C+ · Rev +10.3% B · D/E 0.13 B+ · P/E 18.5x A- · PEG 1.17 B+
Why now. Medical Instruments & Supplies · market cap $27.8b. Down 35% 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 $247.93 (implying +29% 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 35% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon. 1-3 yr $247.93 (analyst consensus (n=15)) — fundamentals + valuation re-rating. 5 yr $363.00 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $538.48 if current growth sustains into durable earnings power.
15. EPAM — EPAM Systems, Inc. · score 82.9
Information Technology Services · price $86.14 · 1Y $135.94 · 5Y $171.62 · 10Y $220.10
FCF $544m C+ · Rev +14.2% B+ · D/E 0.08 B+ · P/E 12.4x A · PEG 0.46 A
Why now. Information Technology Services · market cap $4.5b. Down 61% from 52-week high of $222.53 — deep drawdown territory. Revenue growing +14%, comfortably above the S&P median. PEG 0.46 — paying under fair value for the growth rate. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $135.94 (implying +58% 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 $135.94 (analyst consensus (n=17)) — multiple re-rating thesis requires a catalyst. 5 yr $171.62 at ~15% CAGR — dividend + buyback compounding. 10 yr $220.10 if the moat survives secular pressure.
16. IT — Gartner, Inc. · score 82.8
Information Technology Services · price $133.69 · 1Y $162.46 · 5Y $205.10 · 10Y $263.04
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 $9.0b. Down 63% from 52-week high of $359.36 — 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 $162.46 (implying +22% 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 63% 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 $162.46 (analyst consensus (n=13)) — multiple re-rating thesis requires a catalyst. 5 yr $205.10 at ~9% CAGR — dividend + buyback compounding. 10 yr $263.04 if the moat survives secular pressure.
17. VEEV — Veeva Systems Inc. · score 82.7
Health Information Services · price $179.58 · 1Y $244.59 · 5Y $358.11 · 10Y $531.23
FCF $1.7b C+ · Rev +16.2% B+ · D/E 0.01 A- · P/E 31.8x C+ · PEG 0.85 B+
Why now. Health Information Services · market cap $29.2b. Down 42% 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 +36% 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 42% 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 32x 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 ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $531.23 if current growth sustains into durable earnings power.
18. DECK — Deckers Outdoor Corporation · score 81.3
Footwear & Accessories · price $96.23 · 1Y $127.81 · 5Y $161.36 · 10Y $206.94
FCF $1.1b C+ · Rev +9.8% B · D/E 0.15 A · P/E 13.7x A- · PEG 1.27 B
Why now. Footwear & Accessories · market cap $13.4b. Down 24% from 52-week high of $126.50 — deep drawdown territory. 21 sell-side analysts rate this a Buy with a mean 1-yr target of $127.81 (implying +33% 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 $127.81 (analyst consensus (n=21)) — multiple re-rating thesis requires a catalyst. 5 yr $161.36 at ~11% CAGR — dividend + buyback compounding. 10 yr $206.94 if the moat survives secular pressure.
19. APP — AppLovin Corporation · score 80.2
Advertising Agencies · price $398.86 · 1Y $654.60 · 5Y $958.40 · 10Y $1,422
FCF $4.4b B · Rev +66.4% A · D/E 1.63 C · P/E 34.7x C+ · PEG 1.18 B+
Why now. Advertising Agencies · market cap $134.0b. Down 47% from 52-week high of $745.61 — deep drawdown territory. Revenue growing +66% — in hypergrowth territory. 30 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $654.60 (implying +64% upside).
Moat. Net margin 64% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. FCF converts 112% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined. $134.0b 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 47% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 2.48 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 35x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $654.60 (analyst consensus (n=30)) — fundamentals + valuation re-rating. 5 yr $958.40 at ~19% CAGR — compounding case rests on the competitive position widening. 10 yr $1,422 if current growth sustains into durable earnings power.
20. META — Meta Platforms, Inc. · score 79.2
Internet Content & Information · price $606.10 · 1Y $826.01 · 5Y $1,043 · 10Y $1,337
FCF $48.3b A · Rev +26.2% A- · D/E 0.36 B+ · P/E 22.1x B · PEG 0.94 B+
Why now. Internet Content & Information · market cap $1.5T. Down 24% from 52-week high of $796.25 — deep drawdown territory. Revenue growing +26% — in hypergrowth territory. PEG 0.94 — paying under fair value for the growth rate. 58 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $826.01 (implying +36% upside).
Moat. Net margin 33% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 29% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $1.5T market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk. Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon. 1-3 yr $826.01 (analyst consensus (n=58)) — multiple re-rating thesis requires a catalyst. 5 yr $1,043 at ~11% CAGR — dividend + buyback compounding. 10 yr $1,337 if the moat survives secular pressure.
21. MELI — MercadoLibre, Inc. · score 79.1
Internet Retail · price $1798.70 · 1Y $2,215 · 5Y $3,243 · 10Y $4,810
FCF $11.8b A- · Rev +36.4% A · D/E 1.70 C+ · P/E 47.4x C · PEG 1.12 B+
Why now. Internet Retail · market cap $91.2b. Down 29% 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 $2,215 (implying +23% 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. $91.2b 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 47x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. E-commerce competition — Amazon, Walmart, Shein, and Temu have each forced the rest of the category to compete on price, fulfillment speed, or assortment; sustaining margins requires one of those being structurally defended.
Horizon. 1-3 yr $2,215 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $3,243 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $4,810 if current growth sustains into durable earnings power.
22. PODD — Insulet Corporation · score 79.1
Medical Devices · price $158.38 · 1Y $238.22 · 5Y $348.77 · 10Y $517.38
FCF $416m C · Rev +31.9% A · D/E 0.78 C+ · P/E 37.0x C+ · PEG 1.44 B
Why now. Medical Devices · market cap $11.0b. Down 55% from 52-week high of $354.88 — deep drawdown territory. Revenue growing +32% — in hypergrowth territory. 23 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $238.22 (implying +50% 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 37x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $238.22 (analyst consensus (n=23)) — fundamentals + valuation re-rating. 5 yr $348.77 at ~17% CAGR — compounding case rests on the competitive position widening. 10 yr $517.38 if current growth sustains into durable earnings power.
23. FIVE — Five Below, Inc. · score 77.7
Specialty Retail · price $201.31 · 1Y $260.48 · 5Y $328.85 · 10Y $421.74
FCF $505m C+ · Rev +25.9% A- · D/E 0.86 B · P/E 25.4x C+ · PEG 0.98 B+
Why now. Specialty Retail · market cap $11.1b. 20% off the 52-week high of $251.63. 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 $260.48 (implying +29% 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 $260.48 (analyst consensus (n=21)) — multiple re-rating thesis requires a catalyst. 5 yr $328.85 at ~10% CAGR — dividend + buyback compounding. 10 yr $421.74 if the moat survives secular pressure.
24. YUMC — Yum China Holdings, Inc. · score 76.4
Restaurants · price $43.11 · 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 +42% 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.
25. CRDO — Credo Technology Group Holding Ltd · score 76.2
Semiconductors · price $236.50 · 1Y $279.29 · 5Y $408.90 · 10Y $606.58
FCF $407m C · Rev +205.7% A · D/E 0.01 A · P/E 94.2x D · PEG 0.46 A
Why now. Semiconductors · market cap $44.1b. Down 23% from 52-week high of $308.67 — deep drawdown territory. Revenue growing +206% — in hypergrowth territory. PEG 0.46 — paying under fair value for the growth rate. 19 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $279.29 (implying +18% upside).
Moat. Net margin 35% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 23% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. Semiconductor moat is process-design IP plus customer qualification timelines — once designed in, the company captures multiple product cycles before a competitor can displace.
Risk. Trailing P/E 94.2x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Beta 3.20 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 33.0x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon. 1-3 yr $279.29 (analyst consensus (n=19)) — fundamentals + valuation re-rating. 5 yr $408.90 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $606.58 if current growth sustains into durable earnings power.
26. NFLX — Netflix, Inc. · score 76
Entertainment · price $68.89 · 1Y $95.28 · 5Y $139.50 · 10Y $206.94
FCF $11.2b A- · Rev +16.0% B+ · D/E 0.55 B · P/E 21.7x B · PEG 1.54 C+
Why now. Entertainment · market cap $286.9b. Down 46% from 52-week high of $126.71 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. 45 sell-side analysts rate this a Buy with a mean 1-yr target of $95.28 (implying +38% 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 45% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $286.9b 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 46% 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 $95.28 (analyst consensus (n=45)) — fundamentals + valuation re-rating. 5 yr $139.50 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $206.94 if current growth sustains into durable earnings power.
27. FISV — Fiserv, Inc. · score 75.8
Sector n/a · price $49.97 · 1Y $67.19 · 5Y $84.82 · 10Y $108.78
FCF $4.1b B · Rev +9.3% B · D/E n/a · P/E 8.5x A- · PEG 2.35 C
Why now. Sector n/a · market cap $26.6b. Down 65% from 52-week high of $144.18 — deep drawdown territory. 27 sell-side analysts rate this a Hold with a mean 1-yr target of $67.19 (implying +34% upside).
Moat. Net margin 20% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 12% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 129% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 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 $67.19 (analyst consensus (n=27)) — multiple re-rating thesis requires a catalyst. 5 yr $84.82 at ~11% CAGR — dividend + buyback compounding. 10 yr $108.78 if the moat survives secular pressure.
28. DEO — Diageo plc · score 75.3
Beverages - Wineries & Distilleries · price $82.26 · 1Y $101.14 · 5Y $148.08 · 10Y $219.67
FCF n/a · Rev +4.8% C+ · D/E 1.77 C · P/E 19.0x B · PEG 0.82 B+
Why now. Beverages - Wineries & Distilleries · market cap $45.7b. Down 29% from 52-week high of $116.41 — deep drawdown territory. PEG 0.82 — 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. 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 $101.14 (analyst consensus (n=7)) — fundamentals + valuation re-rating. 5 yr $148.08 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $219.67 if current growth sustains into durable earnings power.
29. EME — EMCOR Group, Inc. · score 75.1
Engineering & Construction · price $769.07 · 1Y $991.57 · 5Y $1,252 · 10Y $1,605
FCF $1.1b C+ · Rev +18.3% B+ · D/E 0.13 A- · P/E 25.9x B · PEG 0.40 A
Why now. Engineering & Construction · market cap $34.2b. 19% off the 52-week high of $951.96. Revenue growing +18%, comfortably above the S&P median. PEG 0.40 — paying under fair value for the growth rate. 7 sell-side analysts rate this a Buy with a mean 1-yr target of $991.57 (implying +29% upside).
Moat. ROE 35% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which.
Risk. Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon. 1-3 yr $991.57 (analyst consensus (n=7)) — multiple re-rating thesis requires a catalyst. 5 yr $1,252 at ~10% CAGR — dividend + buyback compounding. 10 yr $1,605 if the moat survives secular pressure.
30. ULTA — Ulta Beauty, Inc. · score 74.3
Specialty Retail · price $477.95 · 1Y $623.42 · 5Y $912.74 · 10Y $1,354
FCF $1.1b C+ · Rev +11.3% B · D/E 0.89 B · P/E 17.9x B+ · PEG 1.70 C+
Why now. Specialty Retail · market cap $20.5b. Down 33% 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 $623.42 (implying +30% 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 33% 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 $623.42 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $912.74 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $1,354 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.