This refresh
Data-driven refresh July 25, 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 (5,230 tickers); 1,766 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 $20.42 · 1Y $24.61 · 5Y $36.03 · 10Y $53.45
FCF $326m C · Rev +13.1% B+ · D/E 0.01 A · P/E 20.8x B+ · PEG 0.59 A-
Why now. DOCS’s moat lies in its AI‑powered Ask assistant that embeds evidence‑based medical knowledge directly into clinicians’ daily workflow, driving stickiness and premium ad spend. The platform’s 30.4% profit margin, $326m free cash flow and 13.1% YoY revenue growth prove it can monetize that engagement at scale, while the PE of 20.8x still reflects a growth premium. The thesis rests on the continued compounding of high‑margin cash flow as more physicians adopt the Ask tool, keeping the growth engine humming.
Moat. DOCS locks in doctors through its integrated newsfeed, clinical discussions, and the HIPAA‑compliant Ask AI, creating a network effect where each additional user enriches the content pool and ad relevance. With a ROE of 20.6% driven by pricing power in the niche of professional medical platforms, competitors face high switching costs because clinicians rely on the same trusted data and workflow tools daily.
Risk. The biggest headwind is the lofty valuation implied by a reverse‑DCF that assumes a mere 1% annual free‑cash‑flow growth for the next decade, far below the current 13.1% revenue growth and the sector’s typical growth rates, suggesting the market has already priced in optimistic future performance. A significant slowdown from the current 13.1% revenue growth would crush the price, and the stock’s beta of 1.29 amplifies downside in a risk‑off environment. Confirmation of the bear case would be a miss on the next earnings release that shows revenue growth decelerating sharply and margin compression.
Horizon. 1-3 yr $24.61 (analyst consensus (n=18)) — fundamentals + valuation re-rating. 5 yr $36.03 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $53.45 if current growth sustains into durable earnings power.
2. ADBE — Adobe Inc. · score 89.7
Software - Application · price $225.11 · 1Y $269.61 · 5Y $394.73 · 10Y $585.56
FCF $10.3b A- · Rev +11.5% B · D/E 0.61 C+ · P/E 12.9x A · PEG 0.58 A-
Why now. Adobe’s Digital Media suite – especially Photoshop and Premiere – continues to dominate the creator economy, fueling a 11.5% YoY revenue growth and a 28.7% profit margin that outpaces most software peers; the business generates $10.3B of free cash flow on a $89.5B market cap, delivering a 12% FCF yield that underpins a sustainable buy‑back engine. Our Bull Rankings model scores Quality at 92, the highest pillar, confirming the franchise’s pricing power and high ROE of 62.8%, while the reverse‑DCF shows the stock already assumes a -3% annual FCF growth, far below the actual 11.5% revenue expansion – meaning the market is undervaluing the growth trajectory. The thesis rests on Adobe’s ability to compound creator‑centric revenue at double‑digit rates for years to come.
Moat. The Digital Media segment locks in customers through subscription‑based Creative Cloud, where switching costs are high because creators embed Photoshop, Illustrator and Premiere into their workflows, and Adobe’s integrated ecosystem across design, video and web ensures cross‑sell opportunities. The 62.8% ROE reflects pricing power derived from category leadership in professional content tools, a moat that competitors can’t replicate quickly without massive R&D and ecosystem investment.
Risk. A bear sees the looming slowdown in enterprise Digital Experience spend and the rising competition from lower‑cost SaaS rivals, which could compress the 28.7% profit margin and pressure the P/E of 12.9, already modest but vulnerable if growth decelerates below the 11.5% rate. A widening debt‑to‑equity ratio above 0.6 or a beta of 1.43 amplifies downside risk, and a breach of the 52‑week low at $190.12 would confirm that the market is pricing in a harsher growth outlook.
Horizon. 1-3 yr $269.61 (analyst consensus (n=34)) — fundamentals + valuation re-rating. 5 yr $394.73 at ~12% 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
Software - Infrastructure · price $14.49 · 1Y $17.85 · 5Y $26.13 · 10Y $38.77
FCF $413m C · Rev +46.6% A · D/E 0.20 B+ · P/E 22.6x B+ · PEG 0.49 A
Why now. DLocal Limited is a compelling growth play, leveraging its specialized payment processing services to capture the booming global e-commerce market. Our model's Growth pillar score of 100/100 underscores its exceptional trajectory, evidenced by a staggering 46.6% FY YoY revenue growth. With a robust 18% profit margin and an attractive 0.49 PEG ratio, DLO is efficiently converting rapid expansion into shareholder value, especially given our reverse DCF implies a deeply pessimistic ~-7% annual FCF growth priced in. The crux of the thesis rests on DLO's ability to continue expanding its "pay-in solutions" for cross-border and local-to-local transactions, particularly through hundreds of alternative payment methods (APMs) that are critical for global merchants.
Moat. DLO's durable edge stems from its deep integration into diverse local payment ecosystems, offering a comprehensive suite of "pay-in solutions" including international and local cards, online bank transfers, direct debit, cash, and hundreds of APMs. This complexity creates significant switching costs for global merchants who rely on DLO to navigate fragmented payment landscapes and expand their online presence. The company's impressive 34.6% ROE reflects this pricing power and operational efficiency, driven by its specialized expertise in managing global platform payments via "dLocal for Platforms" and its ability to process intricate cross-border and local-to-local transactions that competitors struggle to replicate quickly.
Risk. Despite its impressive growth, DLocal faces a significant bear case rooted in potential shareholder dilution and the inherent challenges of maintaining quality amidst rapid expansion. Our model flags "Diluting shareholders (caution)" and identifies "Quality" as its weakest pillar at 84/100, suggesting underlying concerns about the sustainability of its operational excellence or capital structure. While debt-to-equity is low at 0.2, a sustained slowdown in its 46.6% revenue growth, coupled with continued dilution without a clear strategic benefit, would confirm the bear case, indicating that DLO's rapid expansion into new payment methods and geographies is becoming less efficient or facing increased competitive pressure.
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 88.4
Software - Application · price $296.33 · 1Y $462.53 · 5Y $677.20 · 10Y $1,005
FCF $7.8b B+ · Rev +15.1% B+ · D/E 0.33 B · P/E 18.1x A- · PEG 0.73 A-
Why now. Intuit’s QuickBooks Online platform is cementing its role as the go‑to financial hub for the U.S. SMB market, driving a 15.1% YoY revenue growth while delivering a 21.9% profit margin and generating $7.8B of free cash flow. Our Bull Rankings model awards INTU an 88.4/100 quality‑growth score, with Growth as the strongest pillar, underscoring the durability of this compounding engine. Because the reverse‑DCF implies a –5% FCF growth trajectory, the market is pricing in a steep slowdown that is already disproven by the current growth, leaving ample upside.
Moat. The moat lives in QuickBooks’ entrenched ecosystem: small‑ and mid‑market businesses rely on integrated payroll, payments, and financing that are hard to replace, creating high switching costs and sticky recurring revenue. INTU’s 22.2% ROE reflects pricing power from being the category leader in SMB financial management, allowing it to fund growth without diluting shareholders.
Risk. The biggest headwind is the looming competitive pressure from large cloud‑software rivals expanding into SMB finance, which could compress the PE of 18.1 and erode the 21.9% margin if pricing power wanes. A sustained rise in debt‑to‑equity above the current 0.33 would also signal leverage stress. A breach of the 52‑week low ($252.84) would confirm that investors are pricing in a slowdown, snapping the upside narrative.
Horizon. 1-3 yr $462.53 (analyst consensus (n=33)) — fundamentals + valuation re-rating. 5 yr $677.20 at ~18% 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
Drug Manufacturers - Specialty & Generic · price $175.77 · 1Y $202.17 · 5Y $296.00 · 10Y $439.10
FCF $831m C+ · Rev +28.6% A- · D/E 0.14 B+ · P/E 27.0x B · PEG 0.49 A
Why now. NBIX’s dominant position in the rare‑disease endocrine market, anchored by Orilissa for endometriosis and Oriahnn for uterine fibroids, fuels a compounding engine that will keep revenue expanding at a double‑digit pace. The business is delivering 28.6% YoY revenue growth, a rock‑solid 21.6% profit margin and a free‑cash‑flow stream of $831 m, all while trading at a modest PE of 27 versus peers. Our Bull Rankings model gives the stock an 87/100 quality‑growth score, with Growth as the strongest pillar, underscoring that the earnings runway is real and durable – the thesis rests on sustaining this high‑growth, high‑margin franchise.
Moat. The moat comes from NBIX’s FDA‑approved, specialty‑focused portfolio that serves patients with limited treatment options, creating high switching costs and pricing power. Orilissa and Oriahnn dominate their niches, allowing the company to command premium pricing that translates into a 19.6% ROE despite a low debt‑to‑equity of 0.14. This combination of niche market leadership and strong cash generation protects margins and limits competitive encroachment.
Risk. The bear case hinges on the concentration of revenue in a handful of specialty drugs; any safety‑concern or competitor breakthrough in endometriosis or uterine fibroids could compress the PE of 27 and stall the 28.6% growth rate. A slip in margin or a regulatory setback would quickly erode the 21.6% profit margin and trigger a sell‑off. The key red flag would be a quarterly earnings miss that forces the price below the 52‑week low of $122.14, confirming the fragility of the growth narrative.
Horizon. 1-3 yr $202.17 (analyst consensus (n=27)) — fundamentals + valuation re-rating. 5 yr $296.00 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $439.10 if current growth sustains into durable earnings power.
6. LRN — Stride, Inc. · score 86.9
Education & Training Services · price $86.88 · 1Y $99.91 · 5Y $146.28 · 10Y $217.00
FCF $414m C · Rev +10.9% B · D/E 0.33 A- · P/E 13.6x A- · PEG 0.48 A
Why now. Stride’s integrated virtual‑school platform is rapidly becoming the default solution for districts shifting to blended learning, driving a 10.9% YoY revenue growth, a solid 12.2% profit margin, and $414 m of free cash flow that fuels its aggressive buy‑back program. The combination of strong cash generation and a sub‑1.0 PEG (0.48) means the stock is priced for modest growth, yet the business continues to compound earnings at an 18.8% ROE, leaving ample upside as districts expand online curricula. The thesis rests on the persistence of district‑level enrollment contracts that lock in recurring revenue.
Moat. The moat comes from Stride’s end‑to‑end suite of curriculum, enrollment, and progress‑tracking software that schools must integrate to run virtual or blended programs, creating high switching costs and a data lock‑in that rivals can’t replicate quickly. Its 18.8% ROE reflects pricing power derived from being the only provider that bundles curriculum with the necessary compliance and reporting tools for public‑school contracts.
Risk. The bear case hinges on the reliance on public‑school funding cycles; any tightening of state budgets could curb new virtual‑school contracts, and the stock already trades at a 13.6× PE despite a 52‑week high of $171.17, suggesting the market may be over‑optimistic about continued growth. A slowdown in revenue growth below the current 10.9% would validate the Bull Rankings model’s reverse‑DCF implied -9% FCF growth and could push the price toward its lower 52‑week bound of $60.61.
Horizon. 1-3 yr $99.91 (structural (no analyst coverage)) — fundamentals + valuation re-rating. 5 yr $146.28 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $217.00 if current growth sustains into durable earnings power.
7. TTD — The Trade Desk, Inc. · score 86.8
Advertising Agencies · price $17.29 · 1Y $24.32 · 5Y $35.61 · 10Y $52.82
FCF $842m C+ · Rev +15.5% B+ · D/E 0.17 A- · P/E 19.6x B · PEG 0.80 A-
Why now. The Trade Desk’s cross‑device programmatic platform is cementing its lead in the booming CTV ad market, driving revenue at 15.5% YoY while delivering a healthy 14.6% profit margin and free cash flow of $842 m. Our model flags Growth as the strongest pillar (93) and the 15.5% top‑line expansion validates that momentum, making the stock a high‑quality compounder. The thesis hinges on continued CTV adoption that keeps the revenue engine humming.
Moat. TTD’s platform locks agencies and advertisers into a data‑rich, omnichannel buying stack that spans TV, streaming, mobile and DOOH, creating switching costs and a network effect that rivals can’t replicate quickly. The 17.6% ROE reflects pricing power derived from its category‑leadership in programmatic video, allowing it to capture premium rates while maintaining margin expansion.
Risk. The market is pricing TTD at a premium P/E of 19.6 and a PEG of 0.8, implying future free‑cash‑flow growth of –6% per year—a stark mismatch with the current 15.5% revenue growth and 14.6% margin, suggesting optimism may be overstated. A slowdown in CTV spend or a shift to competing platforms would compress margins and push the stock toward its 52‑week low of $16.70, confirming the bear case.
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.
8. NVDA — NVIDIA Corporation · score 85.8
Semiconductors · price $206.84 · 1Y $302.83 · 5Y $443.37 · 10Y $657.71
FCF $119.1b A · Rev +70.7% A · D/E 0.07 B+ · P/E 31.6x B · PEG 0.58 A-
Why now. NVIDIA’s AI‑driven Compute & Networking platform is the engine of an unstoppable revenue surge, delivering 70.7% YoY growth while generating $119.1 B of free cash flow and a razor‑thin 63% profit margin. This compounding engine, powered by data‑center GPUs that dominate the AI infrastructure market, will keep earnings expanding at a multi‑digit rate, making the stock a high‑growth compounder.
Moat. The company’s moat stems from its unrivaled GPU architecture that locks in data‑center customers through massive switching costs and a software ecosystem that only NVIDIA can provide, enabling it to command pricing power that fuels an ROE of 81.7%—far above sector peers.
Risk. The stock trades at a lofty PE of 31.6 with a beta of 2.21, meaning any slowdown in AI spend or a successful rival breakthrough could compress margins and trigger a sharp sell‑off; a breach of the implied 48% FCF growth needed by the reverse DCF would confirm the downside.
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.
9. EXLS — ExlService Holdings, Inc. · score 85.5
Information Technology Services · price $27.67 · 1Y $40.13 · 5Y $58.75 · 10Y $87.15
FCF $297m C · Rev +13.4% B+ · D/E 0.67 C+ · P/E 17.6x A- · PEG 0.86 B+
Why now. EXLS is poised to dominate AI‑driven claims and underwriting automation for insurers, a segment where its digital operations platform already powers +13.4% YoY revenue growth and generates $297m of free cash flow on a $4.2b market cap. The Bull Rankings model gives it an 85.5/100 quality‑growth score, with Growth as the strongest pillar, underscoring the durability of its high‑margin AI services. Coupled with a low PEG of 0.86 and a P/E of 17.6, the stock is primed to compound earnings as insurers expand digital spend, making the upside hinge on sustained AI adoption.
Moat. EXLS’s moat lies in its end‑to‑end AI suite for insurance—claims management, underwriting support, and policy servicing—embedded in large carriers’ core processes, creating high switching costs and data lock‑in. Its ROE of 32.3% reflects pricing power derived from being a preferred analytics partner across North America and Europe, a position competitors can’t replicate quickly without comparable data assets.
Risk. The bear case centers on the modest valuation premium: a P/E of 17.6 already assumes near‑term earnings acceleration, and the reverse DCF implies a negative 1% free‑cash‑flow growth rate over ten years, suggesting the market may be over‑optimistic about AI spend. A slowdown in insurer budgets or a rise in debt‑to‑equity to above 0.8 would crush margins and trigger a sell‑off, confirming the downside.
Horizon. 1-3 yr $40.13 (analyst consensus (n=8)) — fundamentals + valuation re-rating. 5 yr $58.75 at ~16% 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 85.2
Biotechnology · price $35.32 · 1Y $45.40 · 5Y $66.47 · 10Y $98.60
FCF $342m C · Rev +20.7% A- · D/E 0.18 B+ · P/E 14.2x A- · PEG 0.66 A-
Why now. HRMY’s upside hinges on the commercial momentum of its flagship narcolepsy therapy, WAKIX, which is driving a 20.7% YoY revenue growth while delivering a healthy 16.2% profit margin and a modest PE of 14.2x. The Bull Rankings model awards the stock an 85.2/100 quality‑growth score, with Growth as its strongest pillar, underscoring the durability of the revenue trajectory and the upside from Phase‑3 PWS and Phase‑2 DM1 pipelines. The thesis rests on compounding earnings as WAKIX expands its market share and new indications lift margins further.
Moat. WAKIX’s novel histamine‑3 antagonism gives HRMY a protected niche in the rare‑neurology space, backed by U.S. FDA approval and exclusive patents that create high switching costs for patients and prescribers. This IP shield, combined with a focused U.S. commercial infrastructure, limits near‑term competitive encroachment and fuels pricing power that underpins the current 16% ROE.
Risk. The bear case centers on the company’s heavy reliance on a single commercial product; any safety signal or market‑share erosion could compress the PE of 14.2x and stall the 20.7% growth rate. Moreover, the Bull Rankings model’s reverse‑DCF implies a -19% annual free‑cash‑flow growth, suggesting that the market may already be pricing in overly optimistic pipeline success. A setback in the Phase‑3 PWS trial would confirm this risk and derail the bull thesis.
Horizon. 1-3 yr $45.40 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $66.47 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $98.60 if current growth sustains into durable earnings power.
11. ADMA — ADMA Biologics, Inc. · score 84.9
Biotechnology · price $8.27 · 1Y $17.00 · 5Y $24.89 · 10Y $36.92
FCF $108m C · Rev +11.0% B · D/E 1.11 C · P/E 12.2x A · PEG 0.62 A-
Why now. ADMA is a compounder riding the secular tailwind of plasma-derived biologics, where 32.4% profit margins and 42.4% ROE prove the model works. Revenue grew 11% YoY in a low-growth healthcare market, but the real kicker is the $108m TTM free cash flow — cash that’s funding buybacks rather than dilutive equity raises. The crux: BIVIGAM and ASCENIV dominate primary humoral immunodeficiency (PI) treatment, a sticky end market where switching costs are high and reimbursement is stable.
Moat. ADMA’s moat is built on two locked-in advantages: first, its ADMA BioManufacturing segment controls the entire plasma-derived biologics supply chain, from collection to final product, creating a cost and quality advantage competitors can’t replicate overnight. Second, its IVIG products (BIVIGAM, ASCENIV) command premium pricing due to category leadership in PI, where 42.4% ROE reflects pricing power that’s durable as long as reimbursement codes stay favorable — and they have for three consecutive years.
Risk. The bear case hinges on the 1.11 debt-to-equity ratio creeping higher as ADMA funds growth, or worse, a reimbursement cut that collapses the IVIG pricing umbrella. If PI treatment guidelines shift toward biosimilars or subcutaneous formulations, ADMA’s premium-priced IVIG could see margin compression — a risk that would break the bull thesis. The signal to watch: any downward revision to the 12.2x P/E multiple as payers tighten reimbursement for plasma-derived biologics.
Horizon. 1-3 yr $17.00 (analyst consensus (n=5)) — fundamentals + valuation re-rating. 5 yr $24.89 at ~25% CAGR — compounding case rests on the competitive position widening. 10 yr $36.92 if current growth sustains into durable earnings power.
12. PRDO — Perdoceo Education Corporation · score 84.4
Education & Training Services · price $30.36 · 1Y $34.91 · 5Y $51.12 · 10Y $75.83
FCF $225m C · Rev +17.7% B+ · D/E 0.12 A- · P/E 11.6x A- · PEG 0.66 A-
Why now. PRDO is compounding at 17.7% revenue growth while generating $225M in free cash flow and 19.9% profit margins, the kind of cash machine that turns a $1.9B market cap into a growth compounder. The American InterContinental University System (AIUS) and Colorado Technical University (CTU) segments are capturing demand for career-oriented disciplines like business studies and cybersecurity, where employers pay premiums for skills that don’t require a four-year liberal arts degree. The crux: this growth is self-funding, with buybacks and dividends returning capital to shareholders while the core business scales.
Moat. The University of St. Augustine for Health Sciences (USAHS) segment commands pricing power in healthcare education, where ROE of 17% reflects durable demand for nursing and healthcare management programs that require clinical partnerships and accreditation hurdles competitors can’t replicate quickly. AIUS and CTU benefit from network effects in online education: their digital platforms and career services create sticky student cohorts that reduce churn and justify premium tuition. Switching costs for students—credential recognition, employer partnerships, and financial aid access—lock in repeat enrollment and reduce price sensitivity.
Risk. A single regulatory crackdown on for-profit education could crater enrollment at AIUS or CTU, where D/E of 0.12 masks headline risk from policy shifts. The P/E of 11.6x is cheap for growth, but the stock’s beta of 0.69 suggests it’s not immune to macro shocks in consumer discretionary spending on education. The bear case confirms if enrollment growth stalls below 10% or if profit margins compress below 15%, breaking the compounding thesis.
Horizon. 1-3 yr $34.91 (structural (no analyst coverage)) — fundamentals + valuation re-rating. 5 yr $51.12 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $75.83 if current growth sustains into durable earnings power.
13. CARG — CarGurus, Inc. · score 84
Auto & Truck Dealerships · price $33.37 · 1Y $37.77 · 5Y $55.30 · 10Y $82.03
FCF $293m C · Rev +14.0% B+ · D/E 0.79 B · P/E 17.6x B+ · PEG 1.00 B+
Why now. CARG is a compounder riding a secular shift: 14% revenue growth on a $3.0B market cap and 62.9% ROE proves the model works, but the real leverage is in the product stack. Digital Deal and Dealership Mode lock dealers into a closed loop where online leads convert to on-lot sales, creating a flywheel that compounds as inventory and shopper traffic grow. The crux: this flywheel is still early in international markets, where the same playbook can scale without reinventing the wheel.
Moat. The moat is the dealer network, not the website: 62.9% ROE comes from pricing power on subscription fees charged to dealers who can't afford to lose access to the largest U.S. car-shopping audience. Competitors can copy the listing page, but they can't replicate the density of dealer inventory or the conversion data that feeds pricing algorithms. Dealership Mode embeds CarGurus into the physical purchase process, embedding switching costs that rise with each test drive logged in the system.
Risk. The bear case is valuation: the P/E of 17.6x assumes the 14% growth persists, but the reverse DCF implies -3% FCF growth for a decade — a contradiction unless the growth accelerates. The threat is auto-cycle normalization: if used-car prices deflate and dealer margins compress, the subscription revenue that props up $293M in FCF could shrink faster than the cost base. The signal to sell is a quarter where revenue growth dips below 10% YoY with no offset from international expansion.
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.
14. DXCM — DexCom, Inc. · score 83.9
Medical Devices · price $71.54 · 1Y $85.75 · 5Y $125.55 · 10Y $186.24
FCF $1.4b C+ · Rev +16.1% B+ · D/E 0.47 B · P/E 30.7x B · PEG 1.31 B
Why now. DexCom is printing 19.3% profit margins while growing revenue at 16.1% YoY — a rare combo in medtech — because its G7 and G6 CGM systems have locked in endocrinologists and insurers as repeat customers with $1.4B in annual free cash flow that management can redeploy into share buybacks or R&D. The crux: Stelo, the non-insulin T2D biosensor, is the next leg of TAM expansion, and it’s already scaling into the U.S. adults with prediabetes or Type 2 diabetes who skip fingersticks.
Moat. The G7’s 15-day wear time and factory-calibrated sensor eliminate the user friction that plagued legacy CGMs, creating switching costs for patients and pricing power with payers who reimburse the device as a cost-saving alternative to fingerstick testing. ROE of 31.5% reflects pricing power from category leadership in integrated CGM systems, where DexCom’s direct sales force to endocrinologists and physicians outmuscles competitors who rely on distributors. The Dexcom Share and Follow apps turn individual patients into networked data streams, making the ecosystem stickier than standalone sensors.
Risk. At a P/E of 30.7x, the stock prices in a decade of 16% revenue growth, but the bear case is that Medtronic’s Guardian Connect 4 or Abbott’s FreeStyle Libre 3 undercuts DexCom on price while matching clinical performance, triggering insurer pushback and compressing margins. The concrete signal to break the bull thesis: if the next two quarters show Stelo adoption stalling below 10% of T2D non-insulin users, the TAM expansion thesis loses credibility and the stock re-rates to a 25x multiple.
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.
15. RMD — ResMed Inc. · score 83.5
Medical Instruments & Supplies · price $195.27 · 1Y $248.60 · 5Y $363.98 · 10Y $539.93
FCF $1.8b C+ · Rev +10.3% B · D/E 0.13 B+ · P/E 18.8x A- · PEG 1.15 B+
Why now. ResMed isn’t just riding the sleep-apnea wave — it’s the wave. The Sleep and Breathing Health segment, anchored by cloud-connected diagnostics like ApneaLink Air and NightOwl, is printing 10.3% revenue growth on 27.4% profit margins while the company prints $1.8B in trailing free cash flow. That’s a compounder with the flywheel intact: every new sleep clinic onboarding NightOwl feeds the cloud software moat, which in turn locks in recurring diagnostics revenue. The crux? The NightOwl’s disposable, cloud-connected design turns a one-time sale into a recurring data stream — and competitors can’t replicate the hardware-software integration overnight.
Moat. ResMed’s edge is the closed-loop system between hardware and software, not just any sleep device. The NightOwl’s disposable, cloud-connected design forces clinics to return to ResMed for consumables and cloud analytics, creating a de facto subscription tied to patient volume. That’s why ROE clocks in at 23.4% — pricing power from category leadership in portable diagnostic devices with embedded connectivity, where switching costs are high (data migration, clinician retraining) and network effects compound as more clinics adopt the same platform. Competitors chasing this model would need to replicate both the FDA-cleared hardware and the HIPAA-compliant cloud stack, a multi-year, multi-million-dollar hurdle.
Risk. The bear case is simple: P/E of 18.8x is rich for a company growing revenue at just 10.3%, and the Sleep and Breathing Health segment’s growth could slow if reimbursement rates for home sleep testing compress — a real risk as CMS tightens diagnostics spending. The Street is pricing in 1%/yr FCF growth for a decade, per our model’s reverse DCF, but if reimbursement pressure hits volumes, that implied growth is a mirage. Confirm the bear thesis when CMS finalizes the 2027 home sleep testing reimbursement schedule and cuts rates by >5% — a signal that the durable high returns are at risk.
Horizon. 1-3 yr $248.60 (analyst consensus (n=15)) — fundamentals + valuation re-rating. 5 yr $363.98 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $539.93 if current growth sustains into durable earnings power.
16. EPAM — EPAM Systems, Inc. · score 83
Information Technology Services · price $89.85 · 1Y $135.94 · 5Y $171.62 · 10Y $220.10
FCF $544m C+ · Rev +14.2% B+ · D/E 0.08 B+ · P/E 12.9x A · PEG 0.44 A
Why now. Information Technology Services · market cap $4.7b. Down 60% from 52-week high of $222.53 — deep drawdown territory. Revenue growing +14%, comfortably above the S&P median. PEG 0.44 — paying under fair value for the growth rate. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $135.94 (implying +51% 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 60% 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 ~14% CAGR — dividend + buyback compounding. 10 yr $220.10 if the moat survives secular pressure.
17. VEEV — Veeva Systems Inc. · score 82.5
Health Information Services · price $186.24 · 1Y $244.14 · 5Y $357.45 · 10Y $530.25
FCF $1.7b C+ · Rev +16.2% B+ · D/E 0.01 A- · P/E 33.0x C+ · PEG 0.81 B+
Why now. Health Information Services · market cap $30.3b. Down 40% from 52-week high of $310.50 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. PEG 0.81 — paying under fair value for the growth rate. 28 sell-side analysts rate this a Buy with a mean 1-yr target of $244.14 (implying +31% 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 40% 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 $244.14 (analyst consensus (n=28)) — fundamentals + valuation re-rating. 5 yr $357.45 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $530.25 if current growth sustains into durable earnings power.
18. DECK — Deckers Outdoor Corporation · score 81.8
Footwear & Accessories · price $96.04 · 1Y $122.81 · 5Y $155.04 · 10Y $198.84
FCF $1.1b C+ · Rev +9.8% B · D/E 0.21 A- · P/E 13.7x A- · PEG 1.19 B+
Why now. Footwear & Accessories · market cap $13.3b. Down 23% from 52-week high of $125.45 — deep drawdown territory. 21 sell-side analysts rate this a Buy with a mean 1-yr target of $122.81 (implying +28% 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 $122.81 (analyst consensus (n=21)) — multiple re-rating thesis requires a catalyst. 5 yr $155.04 at ~10% CAGR — dividend + buyback compounding. 10 yr $198.84 if the moat survives secular pressure.
19. ACN — Accenture plc · score 81.2
Information Technology Services · price $146.99 · 1Y $178.89 · 5Y $225.85 · 10Y $289.64
FCF $12.6b A- · Rev +6.7% C+ · D/E 0.25 B · P/E 11.7x A · PEG 1.01 B+
Why now. Information Technology Services · market cap $89.9b. Down 50% 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 +22% 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. $89.9b 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 50% 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 ~9% CAGR — dividend + buyback compounding. 10 yr $289.64 if the moat survives secular pressure.
20. APP — AppLovin Corporation · score 81.1
Advertising Agencies · price $391.98 · 1Y $654.60 · 5Y $958.40 · 10Y $1,422
FCF $4.4b B · Rev +66.4% A · D/E 1.63 C · P/E 34.1x C+ · PEG 1.10 B+
Why now. Advertising Agencies · market cap $131.7b. 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 +67% 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. $131.7b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. 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 34x 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 ~20% CAGR — compounding case rests on the competitive position widening. 10 yr $1,422 if current growth sustains into durable earnings power.
21. META — Meta Platforms, Inc. · score 80.6
Internet Content & Information · price $595.19 · 1Y $825.84 · 5Y $1,043 · 10Y $1,337
FCF $48.3b A · Rev +26.2% A- · D/E 0.36 B+ · P/E 21.6x B · PEG 0.88 B+
Why now. Internet Content & Information · market cap $1.5T. Down 25% from 52-week high of $796.25 — deep drawdown territory. Revenue growing +26% — in hypergrowth territory. PEG 0.88 — paying under fair value for the growth rate. 58 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $825.84 (implying +39% 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 $825.84 (analyst consensus (n=58)) — multiple re-rating thesis requires a catalyst. 5 yr $1,043 at ~12% CAGR — dividend + buyback compounding. 10 yr $1,337 if the moat survives secular pressure.
22. MELI — MercadoLibre, Inc. · score 79.4
Internet Retail · price $1801.44 · 1Y $2,215 · 5Y $3,243 · 10Y $4,810
FCF $11.8b A- · Rev +36.4% A · D/E 1.70 C+ · P/E 47.6x C · PEG 1.11 B+
Why now. Internet Retail · market cap $91.3b. 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. $91.3b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Trailing P/E 48x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. E-commerce competition — Amazon, Walmart, Shein, and Temu have each forced the rest of the category to compete on price, fulfillment speed, or assortment; sustaining margins requires one of those being structurally defended.
Horizon. 1-3 yr $2,215 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $3,243 at ~12% 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 $163.26 · 1Y $238.22 · 5Y $348.77 · 10Y $517.38
FCF $416m C · Rev +31.9% A · D/E 0.78 C+ · P/E 38.1x C+ · PEG 1.40 B
Why now. Medical Devices · market cap $11.3b. Down 54% 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 +46% upside).
Moat. ROE 23% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 137% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 54% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trailing P/E 38x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $238.22 (analyst consensus (n=23)) — fundamentals + valuation re-rating. 5 yr $348.77 at ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $517.38 if current growth sustains into durable earnings power.
24. QCOM — QUALCOMM Incorporated · score 78.3
Semiconductors · price $166.97 · 1Y $221.23 · 5Y $279.30 · 10Y $358.20
FCF $12.5b A- · Rev +5.2% C+ · D/E 0.56 C+ · P/E 18.0x A- · PEG 0.54 A-
Why now. Semiconductors · market cap $176.0b. Down 36% from 52-week high of $259.92 — deep drawdown territory. PEG 0.54 — paying under fair value for the growth rate. 30 sell-side analysts rate this a Hold with a mean 1-yr target of $221.23 (implying +32% upside).
Moat. Net margin 22% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 36% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 126% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 36% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 1.64 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Semiconductor cyclicality — inventory corrections compress margins faster than analysts model. Monitor channel inventory and book-to-bill ratios as leading indicators.
Horizon. 1-3 yr $221.23 (analyst consensus (n=30)) — multiple re-rating thesis requires a catalyst. 5 yr $279.30 at ~11% CAGR — dividend + buyback compounding. 10 yr $358.20 if the moat survives secular pressure.
25. FIVE — Five Below, Inc. · score 78
Specialty Retail · price $203.19 · 1Y $260.48 · 5Y $328.85 · 10Y $421.74
FCF $505m C+ · Rev +25.9% A- · D/E 0.86 B · P/E 25.7x C+ · PEG 0.98 B+
Why now. Specialty Retail · market cap $11.2b. 19% 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 +28% 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.
26. NFLX — Netflix, Inc. · score 76.4
Entertainment · price $70.09 · 1Y $94.84 · 5Y $138.85 · 10Y $205.98
FCF $11.2b A- · Rev +16.0% B+ · D/E 0.55 B · P/E 22.0x B · PEG 1.54 C+
Why now. Entertainment · market cap $291.9b. Down 45% 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 $94.84 (implying +35% 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. $291.9b 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 45% 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 $94.84 (analyst consensus (n=45)) — fundamentals + valuation re-rating. 5 yr $138.85 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $205.98 if current growth sustains into durable earnings power.
27. YUMC — Yum China Holdings, Inc. · score 76.3
Restaurants · price $43.40 · 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 1.08 B+
Why now. Restaurants · market cap $14.9b. 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 +41% 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.
28. FISV — Fiserv, Inc. · score 75.8
Sector n/a · price $51.02 · 1Y $66.85 · 5Y $84.40 · 10Y $108.24
FCF $4.1b B · Rev +9.3% B · D/E n/a · P/E 8.6x A- · PEG 2.40 C
Why now. Sector n/a · market cap $27.2b. Down 65% from 52-week high of $144.05 — deep drawdown territory. 27 sell-side analysts rate this a Hold with a mean 1-yr target of $66.85 (implying +31% 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 $66.85 (analyst consensus (n=27)) — multiple re-rating thesis requires a catalyst. 5 yr $84.40 at ~11% CAGR — dividend + buyback compounding. 10 yr $108.24 if the moat survives secular pressure.
29. ULTA — Ulta Beauty, Inc. · score 75
Specialty Retail · price $475.36 · 1Y $623.42 · 5Y $912.74 · 10Y $1,354
FCF $1.1b C+ · Rev +11.3% B · D/E 0.89 B · P/E 17.8x B+ · PEG 1.66 C+
Why now. Specialty Retail · market cap $20.4b. Down 34% from 52-week high of $714.97 — deep drawdown territory. Revenue growing +11%, comfortably above the S&P median. 24 sell-side analysts rate this a Buy with a mean 1-yr target of $623.42 (implying +31% upside).
Moat. ROE 46% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 95% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 34% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon. 1-3 yr $623.42 (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. EME — EMCOR Group, Inc. · score 74.8
Engineering & Construction · price $744.85 · 1Y $991.57 · 5Y $1,252 · 10Y $1,605
FCF $1.1b C+ · Rev +18.3% B+ · D/E 0.13 A- · P/E 25.0x B+ · PEG 0.41 A
Why now. Engineering & Construction · market cap $33.2b. Down 22% from 52-week high of $951.96 — deep drawdown territory. Revenue growing +18%, comfortably above the S&P median. PEG 0.41 — paying under fair value for the growth rate. 7 sell-side analysts rate this a Buy with a mean 1-yr target of $991.57 (implying +33% 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 ~11% CAGR — dividend + buyback compounding. 10 yr $1,605 if the moat survives secular pressure.
Methodology footnote
Every pick on this list comes out of the same quality-growth model — one 0–100 score blending quality, growth, and value — applied to every US-listed common stock with a market cap above $1B. Each pick's score breakdown is auditable from the home page — click the ticker on the rankings page to see exactly which grades produced the number. Not investment advice. See terms for full disclosures.