This refresh
Data-driven refresh July 24, 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 (5,228 tickers); 1,773 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. Doximity’s AI‑driven workflow tool Ask is turning the platform into an indispensable clinical assistant, locking in physician engagement and fueling premium ad and sponsorship revenue. The business is growing revenue at 13.1% YoY, converting that into a 30.4% profit margin and generating $326 m of free cash flow, all while our Bull Rankings model awards a Quality‑Growth score of 90.7 with Growth as the strongest pillar. The thesis rests on the relentless compounding of high‑margin, physician‑centric ad dollars as the network expands.
Moat. The platform’s network of U.S. physicians creates a switching cost that rivals can’t quickly replicate; Ask and Scribe embed Doximity into daily clinical workflows, making alternatives cumbersome. This lock‑in translates into a ROE of 20.6%, driven by pricing power over premium ad placements and sponsored content that only a trusted, HIPAA‑compliant ecosystem can command.
Risk. The market is pricing in near‑term optimism: a forward P/E of 20.9 and a reverse DCF that assumes only ~1% annual free‑cash‑flow growth for the next decade, far below the actual 13.1% revenue growth. If ad budgets tighten or competitors launch comparable AI assistants, the high beta of 1.29 could amplify a price decline, and a breach of the 52‑week low at $17.15 would confirm 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 Digital Experience platform is scaling as brands shift to data‑driven commerce, driving a 11.5% YoY revenue lift that fuels a 28.7% profit margin and a 62.8% ROE—our model’s Quality score of 89.6/100 reflects that consistency. The company’s $10.3 B free cash flow, coupled with aggressive share buybacks, underpins a 12% compounded return that keeps the current $212.17 price well below the 2027 consensus target of $269.61. The thesis rests on Adobe’s ability to lock in recurring revenue from its Digital Experience segment while maintaining high profitability.
Moat. Adobe’s Digital Experience platform locks in marketers, agencies, and publishers through an integrated analytics‑to‑commerce stack that creates high switching costs; the 62.8% ROE is driven by pricing power in this category‑leading suite, which competitors cannot replicate quickly due to entrenched workflows and data integration.
Risk. Adobe faces a sharp bear case if the Digital Experience segment’s growth slows, as the 12.1 P/E suggests premium valuation; a decline in the 11.5% revenue growth or a rise in debt‑to‑equity beyond 0.61 would erode margins and pressure the 28.7% profit margin, breaking the high‑return thesis.
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 22.3x B+ · PEG 0.48 A
Why now. DLocal’s “dLocal for Platforms” unlocks cross‑border payments for fast‑growing digital platforms, and that engine is expanding at a 46.6% revenue YoY rate while delivering a 18% profit margin and a 34.6% ROE—a rare combination in fintech. The market still values the stock at a modest PE 22.3x and a PEG 0.48, leaving ample headroom for the next wave of platform adoption. The entire thesis hinges on sustaining the platform‑payment compounding that fuels the current growth pillar of our model.
Moat. The moat lives in DLocal’s end‑to‑end pay‑in/pay‑out stack that connects global merchants to 200+ local cards, bank transfers and alternative payment methods, creating high switching costs for platforms that have already integrated the suite. This breadth lets DLocal command pricing power in emerging‑market transactions, which translates into the 34.6% ROE that our model flags as a quality driver.
Risk. The Bull Rankings model’s reverse DCF implies a ‑7% annual free‑cash‑flow growth for the next decade—far below the 46.6% revenue growth we see today, meaning the current price already embeds an aggressive slowdown assumption. If platform volume stalls or dilution from new share issuances accelerates, the PE 22.3x could look stretched and the stock could tumble toward its 52‑week low of $9.81. A sustained drop in growth would confirm the bear case.
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 88.6
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’s QuickBooks online services are driving a 15.1% YoY revenue growth and a 21.9% profit margin, while the company’s free‑cash‑flow of $7.8B fuels a 22.2% ROE—our model’s 95‑point Growth pillar shows this compounder is accelerating. The recent dividend hike signals management confidence that the QuickBooks ecosystem will keep expanding, and the 17.2× P/E reflects a market already pricing in strong future earnings. The thesis rests on QuickBooks’ ability to lock in small‑business customers with high switching costs and recurring subscription revenue.
Moat. QuickBooks’ cloud‑based accounting and payroll suite creates a network effect: each new small‑business customer adds data that improves the platform’s analytics, making it harder for competitors to replicate the depth of insight. The integration with Mailchimp further deepens customer stickiness, as businesses bundle marketing automation with financial management, raising the cost of switching to a single‑vendor alternative.
Risk. Intuit’s 0.33 debt‑to‑equity ratio is modest, but its 17.2× P/E is high for a growth name, and the 1‑year analyst consensus of $462.53 already assumes a 15% revenue growth that may be hard to sustain if larger competitors like Xero or Sage gain market share. A slowdown in the small‑business segment or a regulatory change affecting payroll processing could erode margins and trigger a re‑evaluation of the high valuation.
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. LRN — Stride, Inc. · score 86.9
Education & Training Services · price $86.07 · 1Y $98.98 · 5Y $144.92 · 10Y $214.98
FCF $414m C · Rev +10.9% B · D/E 0.33 A- · P/E 13.5x A- · PEG 0.48 A
Why now. Stride’s integrated virtual‑school platform is the growth engine, fueling a 10.9% revenue YoY increase, a robust $414 m free‑cash‑flow and a rock‑solid PE of 13.5× that leaves ample headroom for earnings expansion; the low beta of 0.1 underscores the defensive nature of its recurring software contracts. This combination lets the business compound enrollment‑driven cash flow at double‑digit rates, and the entire thesis hinges on sustaining that virtual‑school momentum.
Moat. The moat lives in Stride’s end‑to‑end package for virtual and blended public schools—curriculum, LMS, enrollment and progress‑tracking—all delivered through a single vendor. Schools face high switching costs because moving to a new provider would require re‑training staff and re‑certifying curricula, preserving the company’s pricing power that drives an ROE of 18.8%.
Risk. The market is already pricing in a steep decline: our reverse‑DCF shows the current price implies a -9% annual free‑cash‑flow contraction for the next decade, far below the actual 10.9% revenue growth and the 12.2% profit margin, meaning any slowdown or missed enrollment targets would crush the valuation. A breach of the 52‑week high at $171.17 would confirm that optimism is over‑stretched and trigger a sell‑off.
Horizon. 1-3 yr $98.98 (structural (no analyst coverage)) — fundamentals + valuation re-rating. 5 yr $144.92 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $214.98 if current growth sustains into durable earnings power.
6. NBIX — Neurocrine Biosciences, Inc. · score 86.9
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 26.6x B · PEG 0.51 A-
Why now. INGREZZA’s dominance in tardive dyskinesia and Huntington’s disease fuels a compounding revenue engine, backed by 28.6% YoY revenue growth, a razor‑thin PEG of 0.51 and a robust 21.6% profit margin. The Bull Rankings model rates NBIX’s Growth pillar at a perfect 100, confirming that the business can keep reinvesting cash at a high rate, and the thesis hinges on that sustained top‑line acceleration.
Moat. NBIX’s moat rests on FDA‑approved niche therapies—INGREZZA, Orilissa, Oriahnn and CRENESSITY—each protected by strong patents and serving specialist neurologists and endocrinologists who face high switching costs. The 19.6% ROE reflects pricing power in these orphan‑type markets, while a debt‑to‑equity of just 0.14 gives the company financial flexibility to out‑spend rivals on R&D without eroding returns.
Risk. The market is pricing in aggressive expectations: a reverse‑DCF implies ~12% annual free‑cash‑flow growth for a decade, far below the current 28.6% revenue surge, so any slowdown in pipeline progress or a miss on new indications would expose the over‑valued P/E of 26.6 and crush the upside. A bear signal would be a quarterly revenue growth dip below 20% coupled with a widening margin gap.
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.
7. NVDA — NVIDIA Corporation · score 86.1
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 32.5x B · PEG 0.57 A-
Why now. NVDA’s AI‑accelerated data‑center platform is the single engine driving its 70.7% YoY revenue growth, backed by a 63% profit margin and a 32.5× P/E that still leaves room for upside; the company’s $119.1B free‑cash‑flow and 81.7% ROE show it can monetize its scale while raising dividends, positioning it to capture the next wave of AI adoption. The bull case hinges on the Compute & Networking segment’s dominance in data‑center AI, which is poised to compound as enterprise AI spend accelerates.
Moat. NVDA’s moat is its proprietary GPU architecture that powers its GeForce and RTX product lines, giving it a 63% profit margin that rivals the industry’s best; this architecture creates high switching costs for customers who need the performance headroom for AI workloads, and the company’s $5.1T market cap reflects the premium it commands for being the de facto standard in AI inference and training.
Risk. The bear case centers on the 2.21 beta and a 0.07 debt‑to‑equity ratio that could erode if margin compression hits the 63% profit margin; a 32.5× P/E suggests valuation pressure if revenue growth decelerates, and a 70% dividend payout could strain cash flow if AI demand stalls.
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.
8. TTD — The Trade Desk, Inc. · score 85.8
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 20.0x B · PEG 0.87 B+
Why now. The Trade Desk’s programmatic platform for CTV and video ads is still capturing the fastest‑growing slice of digital spend, and its 15.5% YoY revenue growth together with a 14.6% profit margin and $842 m of free cash flow prove the engine is compounding cash at a healthy clip. Our model’s 93‑point Growth pillar tells us the business can keep scaling as advertisers shift budgets to addressable, cross‑device inventory, and the 0.87 PEG signals the market is under‑pricing that upside. The thesis hinges on continued CTV adoption fueling double‑digit top‑line expansion for years to come.
Moat. TTD’s advantage lives in its unified data‑driven buying stack that serves agencies and direct advertisers across TV, streaming, mobile and DOOH, creating high switching costs; clients lock‑in their audience‑targeting data and workflow integrations, while the platform’s pricing power—evidenced by a 17.6% ROE—stems from category leadership in real‑time bidding and premium inventory access that rivals can’t replicate quickly.
Risk. The stock trades at a forward P/E of 20 despite a 52‑week low barely above $16.7, implying investors are already pricing in aggressive growth; the Bull Rankings model’s reverse‑DCF shows the current price requires a -7% annual FCF growth rate for a decade, far below the 15.5% revenue growth we see, so any slowdown or margin compression would expose the overvaluation. A breach of the 52‑week low or a shift to a “hold” consensus would be the first red flag that the bullish pricing assumptions are unraveling.
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. EXLS — ExlService Holdings, Inc. · score 85.6
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. ExlService’s AI‑driven claims management and underwriting support are scaling in the high‑margin Insurance segment, driving a 13.4% YoY revenue growth, a 17.1 P/E that still leaves room for upside, and a 32.3% ROE that signals pricing power from its niche analytics expertise. The company’s free‑cash‑flow of $297 m and a debt‑to‑equity of 0.67 underscore its ability to fund growth while returning capital to shareholders, positioning it to compound earnings at a pace that outstrips the broader IT services sector. The Bull Rankings model’s 85.6/100 quality‑growth score, anchored by a 91 growth pillar, confirms that ExlService is a high‑quality compounder whose valuation already reflects significant optimism, yet still offers a clear upside if the 13.4% revenue growth trajectory continues.
Moat. ExlService’s moat is its proprietary analytics platform that powers claims management and underwriting support for insurers, a technology stack that delivers substantial cost savings to clients and creates high switching costs because insurers rely on the platform for real‑time risk assessment. The platform’s integration with policy servicing and premium administration locks in long‑term contracts, while the company’s global presence in North America, the UK, and Europe ensures a diversified client base that reduces exposure to any single market’s downturn.
Risk. The bear case hinges on the company’s elevated P/E of 17.1, which presumes continued 13.4% revenue growth that may stall if insurers cut back on digital transformation spend amid tightening margins. A debt‑to‑equity of 0.67 could strain cash flows if interest rates rise, and the beta of 0.84 suggests sensitivity to broader market swings that could erode earnings during a downturn. A slowdown in the Insurance segment’s digital adoption would directly hit ExlService’s core revenue drivers.
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.
10. HRMY — Harmony Biosciences Holdings, Inc. · score 85.1
Biotechnology · price $35.80 · 1Y $44.91 · 5Y $65.75 · 10Y $97.54
FCF $342m C · Rev +20.7% A- · D/E 0.18 B+ · P/E 14.0x A- · PEG 0.65 A-
Why now. HRMY’s thesis hinges on the rapid expansion of its narcolepsy franchise, WAKIX, which already generates $342m of free cash flow and drives a 20.7% YoY revenue lift; the company’s 16.2% profit margin and 16% ROE demonstrate efficient monetization of a niche, high‑pain patient group; and the analyst consensus 1‑yr target of $44.91 reflects a 25% upside that aligns with the company’s 14× P/E, a valuation comfortably below the sector median. The convergence of a proven product, strong cash‑flow generation, and a price that still leaves room for a 25% gain is the single most compelling reason to own HRMY now.
Moat. WAKIX’s unique pitolisant mechanism gives HRMY a therapeutic advantage that competitors cannot replicate without substantial R&D; the drug’s FDA approval for narcolepsy locks in a dedicated payer base and high switching costs, ensuring that once patients are on therapy, they rarely switch to alternatives. This IP‑protected, high‑margin product line secures a durable revenue stream that fuels the company’s 16% ROE.
Risk. The bear case centers on the concentration risk of relying on a single approved indication; if the narcolepsy market contracts or a cheaper generic emerges, the 14× P/E could turn upside‑down. Additionally, the company’s debt‑to‑equity of 0.18, while modest, could strain cash flows if the Phase 3 PWS trial stalls, eroding the 20.7% revenue growth and pressuring margins.
Horizon. 1-3 yr $44.91 (analyst consensus (n=11)) — fundamentals + valuation re-rating. 5 yr $65.75 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $97.54 if current growth sustains into durable earnings power.
11. ADMA — ADMA Biologics, Inc. · score 84.8
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’s dominant IVIG franchise—BIVIGAM and ASCENIV—locks in a steady stream of U.S. immunodeficiency patients, and the business is compounding at an 11% FY YoY revenue growth while delivering a razor‑thin PE of 12.3x and a sub‑1.0 PEG of 0.63. Our Bull Rankings model awards an 84.8/100 quality‑growth score, with Growth as the strongest pillar, underscoring the durability of earnings expansion. The thesis hinges on the ability to reinvest the $108 m free‑cash‑flow into buybacks and capacity, letting the high‑margin (32.4%) franchise compound earnings for years to come.
Moat. ADMA’s moat lives in its integrated plasma‑collection and bio‑manufacturing platform, which supplies BIVIGAM and ASCENIV directly to specialty pharmacies and hospitals—customers that face high switching costs due to stringent FDA approvals and the need for consistent supply. The 42.4% ROE reflects pricing power from being a category leader in IVIG, where few competitors can match ADMA’s scale and proprietary plasma sourcing.
Risk. The bear case centers on the modest 1.11 debt‑to‑equity ratio and a PE that, while low, still implies the market expects earnings to outpace cash generation; any slowdown in plasma collection or a regulatory setback to the IVIG line would crush margins and push the PE toward historical biotech highs. A breach of the 1.11 D/E ceiling or a dip in profit margin below 30% would validate the risk and force the stock back toward its 52‑week low of $7.21.
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.
12. CARG — CarGurus, Inc. · score 83.5
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 17.7x B+ · PEG 1.07 B+
Why now. CarGurus’ Digital Deal platform is driving a 14% YoY revenue lift and a 15.9% profit margin, while its $293 M free‑cash‑flow fuels aggressive share buybacks that trim equity and lift earnings per share—our model’s 83.5/100 quality‑growth score, anchored by an 87 quality pillar, shows the business is already a high‑quality compounder. The platform’s online marketplace connects millions of shoppers with a nationwide dealer network, creating a friction‑free buying experience that keeps customers returning and pushes repeat sales. With a 62.9% ROE and a debt‑to‑equity of 0.79, the company can sustain its growth without diluting shareholders, making the current $32.96 price a compelling entry point.
Moat. The moat is the Digital Deal suite, which lets consumers start purchases online and then finish on‑lot, locking in a seamless buyer journey that competitors cannot replicate without building an equally sophisticated tech stack and dealer network. This integration creates high switching costs for shoppers and a network effect that amplifies as more dealers join, driving a 15.9% profit margin that is difficult for traditional dealer‑only platforms to match.
Risk. The bear case hinges on the 17.7 P/E, which is above the sector average and suggests the market is already pricing in aggressive growth. If the 14% revenue growth stalls or margins compress below 15%, the 0.79 debt‑to‑equity could become a drag, and a 1.18 beta means the stock will be sensitive to a broader auto‑market downturn—any slowdown in consumer demand would erode the Digital Deal advantage and hurt free‑cash‑flow.
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.
13. RMD — ResMed Inc. · score 83.4
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 18.6x A- · PEG 1.17 B+
Why now. ResMed’s dominance in cloud‑connected sleep diagnostics—anchored by the ApneaLink Air and NightOwl devices—is fueling a virtuous cycle of recurring software revenue and high‑margin hardware sales. The business is delivering 10.3% revenue growth YoY, a 27.4% profit margin, and a stellar 23.4% ROE, all while trading at a reasonable PE of 18.6x. The thesis rests on the continued roll‑out of its integrated sleep‑and‑breathing platform, which should keep earnings compounding at double‑digit rates.
Moat. ResMed’s moat stems from its end‑to‑end sleep‑health ecosystem: clinicians adopt its FDA‑cleared devices, then lock in patients to its cloud‑based software for ongoing monitoring, creating high switching costs and data lock‑in. This integrated model underpins pricing power that drives the 23.4% ROE, as the company can command premium pricing for both hardware and subscription analytics that rivals cannot replicate quickly.
Risk. The Bull Rankings model flags that the current price embeds a reverse‑DCF implied 0% free‑cash‑flow growth for the next decade, starkly below the reported 10.3% revenue growth, suggesting the market may be over‑optimistic about sustainable cash generation. A slowdown in device adoption or a pricing squeeze would force the PE of 18.6x to look stretched, and a breach of the 0% FCF growth assumption would trigger a sharp re‑rating.
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.
14. PRDO — Perdoceo Education Corporation · score 83.3
Education & Training Services · price $30.84 · 1Y $35.47 · 5Y $51.93 · 10Y $77.03
FCF $225m C · Rev +17.7% B+ · D/E 0.12 A- · P/E 11.8x A- · PEG 0.65 A-
Why now. Perdoceo’s rapid expansion of its Colorado Technical University and American InterContinental University System programs is driving a 17.7% YoY revenue lift, supported by a 19.9% profit margin and 17% ROE—our model’s Quality score of 83.3/100 underscores that these high‑margin, high‑growth segments are already generating durable cash flow of $225 million. The company’s disciplined capital allocation—buybacks and a new dividend—further amplifies shareholder value, positioning PRDO to deliver a 12% compounded return over the next five years. The thesis rests on the sustained growth of its career‑focused online and blended programs, which are less price‑sensitive and benefit from a low debt‑to‑equity of 0.12.
Moat. The moat lies in PRDO’s concentrated portfolio of accredited, career‑oriented degrees—business, nursing, cybersecurity, and health sciences—delivered through CTU, AIUS, and USAHS. These programs attract a steady stream of working professionals who value flexible, industry‑aligned curricula, creating high switching costs and a loyal student base that fuels repeat enrollment and cross‑selling of advanced courses. The resulting 17% ROE reflects pricing power from this niche expertise, which competitors cannot replicate quickly without significant investment in curriculum development and accreditation.
Risk. The bear case hinges on the modest Value score of 77, indicating that the market already prizes PRDO’s growth at a P/E of 11.8, which is higher than peers in education. A potential slowdown in the demand for online professional degrees—if employers shift back to in‑person training—could compress margins from 19.9% to the industry average of ~12%. A 0.12 debt‑to‑equity is low now, but any capital‑intensive expansion or regulatory change could erode this cushion, pushing the P/E up and eroding the upside. A clear signal of a bear case would be a sustained decline in revenue growth below the current 17.7% YoY.
Horizon. 1-3 yr $35.47 (structural (no analyst coverage)) — fundamentals + valuation re-rating. 5 yr $51.93 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $77.03 if current growth sustains into durable earnings power.
15. DXCM — DexCom, Inc. · score 83.2
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 30.6x 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 31x 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.
16. EPAM — EPAM Systems, Inc. · score 83
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.
17. VEEV — Veeva Systems Inc. · score 82.6
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 32.7x 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 33x 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. ACN — Accenture plc · score 81.6
Information Technology Services · price $138.74 · 1Y $178.89 · 5Y $225.85 · 10Y $289.64
FCF $12.6b A- · Rev +6.7% C+ · D/E 0.25 B · P/E 11.2x A · PEG 1.02 B+
Why now. Information Technology Services · market cap $84.9b. Down 52% from 52-week high of $291.09 — deep drawdown territory. 25 sell-side analysts rate this a Buy with a mean 1-yr target of $178.89 (implying +29% upside).
Moat. ROE 24% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 162% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined. $84.9b 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. Down 52% 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 $178.89 (analyst consensus (n=25)) — multiple re-rating thesis requires a catalyst. 5 yr $225.85 at ~10% CAGR — dividend + buyback compounding. 10 yr $289.64 if the moat survives secular pressure.
19. APP — AppLovin Corporation · score 80.8
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 35.8x 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 36x 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. DECK — Deckers Outdoor Corporation · score 79.8
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 14.6x 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.
21. META — Meta Platforms, Inc. · score 79.8
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 22.8x 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.
22. MELI — MercadoLibre, Inc. · score 79.4
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 D · 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.
23. 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 37.2x 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.
24. FIVE — Five Below, Inc. · score 78.2
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 25.8x 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.
25. CRDO — Credo Technology Group Holding Ltd · score 76.6
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 91.0x C · PEG 0.44 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 0.44 — 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 91.0x 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. YUMC — Yum China Holdings, Inc. · score 76.6
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 16.6x 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.
27. NFLX — Netflix, Inc. · score 76.3
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 21.5x 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.
28. FISV — Fiserv, Inc. · score 75.9
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 2.36 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.
29. ULTA — Ulta Beauty, Inc. · score 74.8
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 18.1x 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.
30. DEO — Diageo plc · score 74.2
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 19.5x 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.
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.