This refresh
Data-driven refresh July 27, 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 (5,229 tickers); 1,476 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 90.8
Health Information Services · price $20.99 · 1Y $24.61 · 5Y $36.03 · 10Y $53.45
FCF $326m C · Rev +13.1% B+ · D/E 0.01 A · P/E 21.4x B+ · PEG 0.59 A-
Why now. DOCS’s AI‑driven workflow tool Ask is cementing the platform as the go‑to clinical knowledge hub for U.S. physicians, fueling a virtuous loop of engagement and monetization. The business is growing revenue at 13.1% YoY, converting that into a stellar 30.4% profit margin and a 20.6% ROE, while the Bull Rankings model awards a 93‑point Growth pillar — the strongest of the three. The thesis hinges on the compounding power of this high‑margin, high‑engagement ecosystem continuing to expand its advertiser and sponsor base.
Moat. DOCS locks in physicians through its integrated newsfeed, clinical discussions, and the HIPAA‑compliant Ask assistant, creating a network effect where each additional user raises the platform’s value for peers and sponsors. This stickiness translates into pricing power that underpins the 20.6% ROE, as advertisers pay premium rates to reach a captive, highly targeted audience that rivals can’t replicate quickly without comparable data depth.
Risk. The market is pricing DOCS for near‑term optimism: a forward P/E of 21.4 implies earnings growth far above the historical 13% revenue pace, and the Bull Rankings reverse‑DCF model only justifies a 2% annual free‑cash‑flow growth over ten years — a stark mismatch that could unwind if advertiser spend slows. A bear‑case trigger would be a slowdown in user growth or a competitive AI platform siphoning engagement, which would crush the premium valuation and push the stock back toward its 52‑week low of $17.15.
Horizon. 1-3 yr $24.61 (analyst consensus (n=18)) — fundamentals + valuation re-rating. 5 yr $36.03 at ~11% 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 89.4
Software - Application · price $237.75 · 1Y $269.61 · 5Y $394.73 · 10Y $585.56
FCF $10.3b A- · Rev +11.5% B · D/E 0.61 C+ · P/E 13.6x A- · PEG 0.62 A-
Why now. Adobe’s Digital Experience platform is now the de facto commerce engine for brands that need to monetize data‑driven customer journeys, and the company is already reaping the payoff with a 28.7% profit margin, $10.3B free cash flow and a 62.8% ROE that reflects the pricing power of its enterprise‑grade solutions. The 11.5% YoY revenue growth, coupled with a PEG of 0.62, shows the business is still expanding at a brisk pace while the market has not yet fully priced in the durable moat of its cross‑product ecosystem. The Bull Rankings model’s 89.4/100 quality‑growth score, anchored by a 92 in Quality, confirms that Adobe’s high‑margin, high‑cash‑flow engine is a compounder that will continue to deliver value for investors.
Moat. Adobe’s moat is the tightly integrated suite that spans from creative content creation to customer experience management, creating a friction‑heavy switch for marketers who rely on seamless data flow between Photoshop, Experience Cloud and Commerce Cloud. The platform’s ability to lock in enterprise customers through bundled licensing and the high switching costs of its proprietary APIs keep competitors at bay and drive the 62.8% ROE through pricing power in the enterprise segment.
Risk. Adobe’s beta of 1.43 and a P/E of 13.6 signal that the market is already demanding a premium for its growth, and the reverse‑DCF implied free‑cash‑flow growth of –2% per year is far below the 11.5% revenue expansion, meaning any slowdown in the digital‑experience boom or a sharp rise in debt‑to‑equity could erode margins. A sudden shift to cheaper cloud alternatives or a major data‑privacy crackdown could force Adobe to cut prices, compressing its 28.7% profit margin and undermining the 62.8% ROE that has been the engine of its valuation.
Horizon. 1-3 yr $269.61 (analyst consensus (n=34)) — fundamentals + valuation re-rating. 5 yr $394.73 at ~11% 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 88.8
Software - Infrastructure · price $14.96 · 1Y $18.05 · 5Y $26.43 · 10Y $39.20
FCF $413m C · Rev +46.6% A · D/E 0.20 B+ · P/E 23.4x B+ · PEG 0.50 A
Why now. DLocal’s cross‑border pay‑in engine for e‑commerce, streaming and ride‑hailing platforms is exploding, delivering 46.6% YoY revenue growth while preserving a healthy 18% profit margin and generating $413 m of free cash flow. Coupled with a stellar 34.6% ROE, the business compounds earnings at a rate that far outpaces peers, making the growth pillar of our model (100) the decisive edge. The thesis rests on the relentless expansion of digital payments in emerging markets, which fuels that compounding engine.
Moat. The moat lives in DLocal’s unified pay‑in and pay‑out platform that locks merchants into a single integration for hundreds of local cards, bank transfers and alternative payment methods, creating high switching costs for global merchants. This network effect, combined with pricing power that yields a >30% ROE, lets DLocal capture margin on every transaction that rivals can’t replicate quickly in fragmented emerging‑market ecosystems.
Risk. The biggest headwind is that the market is already pricing in aggressive forward growth: the reverse DCF implies a negative <6% annual free‑cash‑flow expansion, yet the stock trades at a forward P/E of 23.4 despite a 46.6% revenue surge, and our model flags shareholder dilution. A slowdown in cross‑border spend or a misstep in scaling the platform would force the valuation to re‑price, confirming the bear case.
Horizon. 1-3 yr $18.05 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $26.43 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $39.20 if current growth sustains into durable earnings power.
4. INTU — Intuit Inc. · score 88.4
Software - Application · price $303.91 · 1Y $462.53 · 5Y $677.20 · 10Y $1,005
FCF $7.8b B+ · Rev +15.1% B+ · D/E 0.33 B · P/E 18.5x B+ · PEG 0.77 A-
Why now. Intuit’s QuickBooks ecosystem is the engine, delivering 15.1% YoY revenue growth, $7.8B free cash flow and a 21.9% profit margin that together fuel a compounding franchise; our Bull Rankings model scores Growth at 95, the strongest pillar, confirming the runway, while the reverse‑DCF shows the market is pricing in a -5% FCF growth rate, far below the real 15% top‑line expansion, making the stock a clear upside bet.
Moat. The QuickBooks and Mailchimp platforms lock small‑ and mid‑market businesses into an integrated suite of accounting, payroll, payments and marketing tools, creating high switching costs and cross‑sell momentum; the 22.2% ROE reflects pricing power from category leadership in SMB financial software, a moat competitors can’t replicate quickly.
Risk. A bear argues the 18.5× P/E, well above the sector average, assumes perpetual high‑margin growth, yet any slowdown in the 15.1% revenue trajectory or a rise in debt‑to‑equity above 0.33 would compress margins; a sustained dip in free cash flow would validate the reverse‑DCF’s -5% growth assumption and trigger a sell‑off.
Horizon. 1-3 yr $462.53 (analyst consensus (n=33)) — fundamentals + valuation re-rating. 5 yr $677.20 at ~17% 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 87.4
Drug Manufacturers - Specialty & Generic · price $176.41 · 1Y $202.17 · 5Y $296.00 · 10Y $439.10
FCF $831m C+ · Rev +28.6% A- · D/E 0.14 B+ · P/E 27.1x B · PEG 0.50 A
Why now. Neurocrine’s Orilissa and INGREZZA lines are driving a 28.6% YoY revenue surge, backed by a 21.6% profit margin and $831 m free‑cash‑flow that fuels a 27.1× P/E yet still leaves room for growth; our model’s 100‑point Growth pillar underscores this momentum, making NBIX a high‑quality compounder that can sustain 12% FCF growth per the reverse‑DCF. The company’s 19.6% ROE, powered by pricing power in niche neurological and endocrine markets, ensures that margin expansion can continue, anchoring the thesis on relentless compounding.
Moat. Orilissa’s long‑term treatment of endometriosis and INGREZZA’s unique indication for tardive dyskinesia create high switching costs for patients and physicians; the company’s exclusive licensing of NBI‑1076986 for movement disorders adds a pipeline that competitors cannot replicate quickly, preserving its pricing power and sustaining the 21.6% profit margin.
Risk. NBIX’s beta of 0.39 signals low volatility, but its 0.14 debt‑to‑equity ratio and a 27.1× P/E expose it to valuation pressure if the 28.6% revenue growth slows; a competitive entrant with a cheaper alternative for endometriosis could erode Orilissa’s market share, and a dip in the 12% FCF growth implied by the reverse‑DCF would invalidate the bullish CAGR assumption.
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. NVDA — NVIDIA Corporation · score 86
Semiconductors · price $196.51 · 1Y $302.83 · 5Y $443.37 · 10Y $657.71
FCF $119.1b A · Rev +70.7% A · D/E 0.07 B+ · P/E 30.0x B · PEG 0.57 A-
Why now. The single most compelling reason to own NVIDIA now is its dominance in data‑center AI infrastructure via the Compute & Networking segment, which is fueling a 70.7% YoY revenue surge. That growth is underpinned by a 63% profit margin and an eye‑popping 81.7% ROE, giving the company massive cash‑generation power to reinvest and return capital. The thesis rests on the continuation of AI‑driven demand that compounds earnings at a rate far above the broader market.
Moat. NVIDIA’s moat lies in its proprietary GPU architecture that powers the Compute & Networking platform, a must‑have for hyperscale data‑center AI workloads. The combination of unmatched performance and a software stack creates high switching costs for cloud providers and enterprise AI customers, allowing NVIDIA to capture pricing power that translates into the 81.7% ROE reported.
Risk. The biggest headwind is valuation pressure: a forward P/E of 30 and a beta of 2.21 mean the stock is both expensive and highly volatile, and the Bull Rankings model’s reverse‑DCF assumes a sustained 47% free‑cash‑flow growth—well below the 70.7% revenue growth rate, so any slowdown would make the price untenable. A sharp earnings miss or a slowdown in AI spend would trigger a sell‑off, confirming the bear case.
Horizon. 1-3 yr $302.83 (analyst consensus (n=58)) — fundamentals + valuation re-rating. 5 yr $443.37 at ~18% CAGR — compounding case rests on the competitive position widening. 10 yr $657.71 if current growth sustains into durable earnings power.
7. TTD — The Trade Desk, Inc. · score 85.8
Advertising Agencies · price $17.88 · 1Y $24.32 · 5Y $35.61 · 10Y $52.82
FCF $842m C+ · Rev +15.5% B+ · D/E 0.17 A- · P/E 20.3x B · PEG 0.82 B+
Why now. The Trade Desk's robust platform for managing and optimizing digital advertising, particularly in high-growth areas like CTV and other video, positions it as a compounding growth story. Our model's impressive 85.8/100 quality-growth score, anchored by a strong Growth pillar of 93, highlights its operational momentum, evidenced by 15.5% FY YoY revenue growth and a healthy 14.6% profit margin. Despite this, the market is pricing in significant pessimism, with our reverse DCF suggesting a mere -6%/yr free-cash-flow growth sustained for 10 years, making the current $17.88 price a compelling entry point for a business delivering a 17.6% ROE. The crux is the persistent shift of ad spend to programmatic digital channels, where TTD's platform is a critical infrastructure.
Moat. The Trade Desk's durable edge stems from its comprehensive technology platform that streamlines the creation, management, and optimization of digital advertising campaigns across a multitude of devices and formats, including CTV. This deep integration into the workflows of advertising agencies and direct advertisers creates significant switching costs, making it difficult for clients to migrate to alternative solutions once embedded. The platform's ability to provide data and other value-added services further strengthens its position, fostering a network effect where increased adoption enhances the platform's utility and data insights for all participants.
Risk. The primary bear case against The Trade Desk centers on the inherent cyclicality of advertising spend and intense competition within the digital ad tech sector, which could pressure future growth rates. While our model rates Quality and Growth highly, its weakest pillar, Value (78), indicates that the current valuation, with a P/E TTM of 20.3 and P/S TTM of 2.8, leaves limited margin for error should revenue growth decelerate from its current 15.5%. A sustained decline in overall digital ad budgets or increased competitive pressure leading to a contraction in the company's 14.6% profit margin would confirm the bear thesis and undermine the long-term growth narrative.
Horizon. 1-3 yr $24.32 (analyst consensus (n=30)) — fundamentals + valuation re-rating. 5 yr $35.61 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $52.82 if current growth sustains into durable earnings power.
8. EXLS — ExlService Holdings, Inc. · score 85.3
Information Technology Services · price $28.56 · 1Y $40.13 · 5Y $58.75 · 10Y $87.15
FCF $297m C · Rev +13.4% B+ · D/E 0.67 C+ · P/E 18.2x A- · PEG 0.89 B+
Why now. EXLS is poised to dominate AI‑driven claims management for insurers, a segment where its digital operations platform already commands the largest contracts in North America. The business is scaling at 13.4% YoY revenue growth, converting that into an 11.7% profit margin and a stellar ROE of 32.3%, while the market still values it at a modest P/E of 18.2. The bull case rests on the continuation of this high‑margin growth in the insurance and healthcare AI services arena, compounding earnings for years to come.
Moat. EXLS’s moat lies in its deep integration with insurers’ core workflows—claims processing, underwriting support, and policy servicing—creating switching costs that are hard to replicate without a comparable AI data platform. Its 0.84 beta reflects stable demand, and the 0.67 debt‑to‑equity ratio shows disciplined financing that fuels buybacks, reinforcing shareholder value. The 32.3% ROE is driven by pricing power in the niche of analytics‑driven insurance services, where few competitors can match its data depth.
Risk. The bear case centers on the valuation stretch: a reverse DCF shows the current $28.56 price implies 0% free‑cash‑flow growth for the next decade, far below the 13.4% revenue growth rate, meaning the market is already pricing in aggressive optimism. If AI adoption stalls or insurers shift to cheaper in‑house solutions, the P/E of 18.2 could compress sharply, and the 0.84 beta would amplify downside. A sustained slowdown in margin or a rise in debt would confirm the overvaluation and trigger a sell‑off.
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.
9. ADMA — ADMA Biologics, Inc. · score 85.1
Biotechnology · price $8.48 · 1Y $17.00 · 5Y $24.89 · 10Y $36.92
FCF $108m C · Rev +11.0% B · D/E 1.11 C · P/E 12.5x A · PEG 0.64 A-
Why now. ADMA’s dominant IVIG franchise—anchored by BIVIGAM and ASCENIV—feeds a 32.4% profit margin and a soaring 42.4% ROE, while revenue is still expanding at 11% YoY; together they fuel a compounding earnings engine that our model flags as the strongest Growth pillar. The market still undervalues this engine at a modest $108m free‑cash‑flow run‑rate, leaving upside primed for a breakout. The thesis hinges on sustained IVIG demand outpacing the modest 2% reverse‑DCF growth assumption.
Moat. ADMA’s moat lives in its integrated plasma collection and bio‑manufacturing platform, which secures a reliable supply of high‑purity plasma for BIVIGAM and ASCENIV—products that clinicians trust for primary humoral immunodeficiency. This vertical integration creates high switching costs for hospitals and insurers, allowing ADMA to command premium pricing that underpins its 42.4% ROE.
Risk. The bear case centers on the looming competitive pressure from larger IVIG producers who can leverage scale to undercut pricing, threatening ADMA’s margin cushion; the current P/E of 12.5, while low, already embeds expectations of continued growth, and any slowdown below the 11% revenue growth rate would compress the 32.4% margin and trigger a sell‑off. A rise in the debt‑to‑equity ratio above the current 1.11 would confirm the risk and invalidate the bull thesis.
Horizon. 1-3 yr $17.00 (analyst consensus (n=5)) — fundamentals + valuation re-rating. 5 yr $24.89 at ~24% CAGR — compounding case rests on the competitive position widening. 10 yr $36.92 if current growth sustains into durable earnings power.
10. HRMY — Harmony Biosciences Holdings, Inc. · score 85
Biotechnology · price $36.01 · 1Y $45.40 · 5Y $66.47 · 10Y $98.60
FCF $342m C · Rev +20.7% A- · D/E 0.18 B+ · P/E 14.5x A- · PEG 0.68 A-
Why now. Our Bull Rankings model gives HRMY a 85/100 quality‑growth score, with Growth at 100 and Quality at 77. The thesis hinges on WAKIX (pitolisant) for narcolepsy, which already generates $342 m of free cash flow and drives a 20.7% YoY revenue rise, a 16.2% profit margin and a 16% ROE. The company’s current P/E of 14.5 and PEG of 0.68 suggest the market is already pricing in aggressive growth, but the 20.7% revenue expansion is still the engine that will sustain the 10‑year CAGR target.
Moat. WAKIX’s novel mechanism of action gives HRMY a first‑mover advantage in the rare neurological disease space, creating high switching costs for patients and prescribers. The drug’s commercial exclusivity in the U.S. narcolepsy market, combined with a robust pricing strategy that supports a 16% margin, locks in a durable revenue stream that competitors cannot replicate quickly.
Risk. The bear case centers on the concentration risk of WAKIX: if the Phase 3 PWS trial fails or if a cheaper generic emerges, revenue could stall. The company’s debt‑to‑equity of 0.18 is modest, but a P/E of 14.5 relative to peers means any slowdown in growth or margin compression would quickly erode the 10‑year valuation 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. CARG — CarGurus, Inc. · score 83.7
Auto & Truck Dealerships · price $34.96 · 1Y $37.77 · 5Y $55.30 · 10Y $82.03
FCF $293m C · Rev +14.0% B+ · D/E 0.79 B · P/E 18.4x B · PEG 1.01 B+
Why now. CarGurus’ Digital Deal platform is turning online shoppers into ready‑to‑buy leads, supercharging its revenue engine – revenue is climbing 14% YoY while the business converts that into a robust 15.9% profit margin and a staggering 62.9% ROE. The combination of a PE of 18.4x and a PEG of 1.01 shows the market is already rewarding growth, but the Bull Rankings model flags a Quality score of 87 (its strongest pillar), meaning the business fundamentals are elite and can sustain compounding. The thesis hinges on Digital Deal’s ability to keep the revenue‑growth engine humming at double‑digit rates.
Moat. The moat lives in CarGurus’ integrated marketplace: dealer subscription fees and advertising lock a massive dealer network to a high‑traffic consumer audience, creating a two‑sided network effect that rivals can’t replicate quickly. Its 62.9% ROE stems from pricing power in a category‑lead platform that commands premium fees while delivering dealers measurable sales, cementing a durable cash‑flow advantage.
Risk. The stock trades at a premium PE of 18.4x and a beta of 1.18, exposing investors to valuation pressure and market volatility; more concerning, the Bull Rankings reverse‑DCF implies a negative 1% annual free‑cash‑flow growth, a stark contrast to the 14% revenue expansion, suggesting the market may be over‑optimistic. A slowdown in Digital Deal adoption or a rise in debt‑to‑equity above 0.79 would confirm the bear case and crush the upside.
Horizon. 1-3 yr $37.77 (analyst consensus (n=13)) — fundamentals + valuation re-rating. 5 yr $55.30 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $82.03 if current growth sustains into durable earnings power.
12. DXCM — DexCom, Inc. · score 83.5
Medical Devices · price $73.37 · 1Y $86.12 · 5Y $126.09 · 10Y $187.04
FCF $1.4b C+ · Rev +16.1% B+ · D/E 0.47 B · P/E 31.5x B · PEG 1.33 B
Why now. DexCom’s G7 platform is cementing its dominance in the U.S. CGM market, driving a 16.1% YoY revenue growth and a 19.3% profit margin that fuels a 31.5% ROE. Our Bull Rankings model awards an 83.5/100 quality‑growth score, with Growth as the strongest pillar, underscoring the compounding power of expanding CGM adoption and the upcoming G7 15‑Day rollout. The thesis hinges on the ability to sustain this high‑margin growth trajectory as more diabetics and pre‑diabetics shift to continuous monitoring.
Moat. The Dexcom G7 and its companion Share/Follow ecosystem lock in endocrinologists and patients through a seamless data loop that is hard to replicate, creating switching costs and entrenched reimbursement relationships. A ROE of 31.5% reflects pricing power derived from category leadership in CGM accuracy and sensor longevity, which competitors struggle to match without costly R&D and regulatory hurdles.
Risk. The stock trades at a lofty PE of 31.5 and a beta of 1.45, suggesting the market has already priced in aggressive growth expectations; any slowdown from the current 16.1% revenue pace would expose the weak Value pillar (score 69) and pressure the share price. A bear‑case materializes if newer entrants or alternative glucose monitoring technologies erode market share, triggering a multiple contraction that would validate the high valuation risk.
Horizon. 1-3 yr $86.12 (analyst consensus (n=25)) — fundamentals + valuation re-rating. 5 yr $126.09 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $187.04 if current growth sustains into durable earnings power.
13. RMD — ResMed Inc. · score 82.9
Medical Instruments & Supplies · price $203.08 · 1Y $248.60 · 5Y $363.98 · 10Y $539.93
FCF $1.8b C+ · Rev +10.3% B · D/E 0.13 B+ · P/E 19.6x B+ · PEG 1.17 B+
Why now. ResMed’s cloud‑connected sleep diagnostics—ApneaLink Air and NightOwl—are driving a 10.3% YoY revenue lift, a 27.4% profit margin, and a 23.4% ROE, proving the company’s high‑growth, high‑quality engine. The Bull Rankings model scores RMD 82.9/100, with Quality at 90, underscoring the firm’s robust earnings power and disciplined capital use. The implied 2%/yr free‑cash‑flow growth from the reverse DCF is far below the 10.3% revenue pace, meaning the stock already discounts a sizable tailwind, yet the current price still offers upside.
Moat. RMD’s moat is its integrated, cloud‑enabled platform that links portable diagnostics (ApneaLink Air, NightOwl) to software for sleep clinics and hospitals, creating high switching costs for providers who rely on seamless data flow. The company’s 23.4% ROE reflects pricing power from being the de‑facto leader in sleep‑apnea diagnostics, a position that competitors cannot replicate quickly due to the proprietary sensor suite and established clinical workflows.
Risk. The bear case hinges on RMD’s 19.6 P/E, which is above the sector average, and a modest debt‑to‑equity of 0.13 that could swell if the firm accelerates capex to expand its residential software segment. A slowdown in sleep‑apnea diagnosis demand—driven by cheaper alternative wearables—could erode the 10.3% revenue growth, and any margin compression would blunt the 27.4% profit margin that currently fuels the high ROE.
Horizon. 1-3 yr $248.60 (analyst consensus (n=15)) — fundamentals + valuation re-rating. 5 yr $363.98 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $539.93 if current growth sustains into durable earnings power.
14. EPAM — EPAM Systems, Inc. · score 82.8
Information Technology Services · price $94.17 · 1Y $135.94 · 5Y $171.62 · 10Y $220.10
FCF $544m C+ · Rev +14.2% B+ · D/E 0.08 B+ · P/E 13.5x A- · PEG 0.46 A
Why now. Information Technology Services · market cap $4.9b. Down 58% 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 +44% 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 58% 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 ~13% CAGR — dividend + buyback compounding. 10 yr $220.10 if the moat survives secular pressure.
15. VEEV — Veeva Systems Inc. · score 82.4
Health Information Services · price $194.46 · 1Y $244.14 · 5Y $357.45 · 10Y $530.25
FCF $1.7b C+ · Rev +16.2% B+ · D/E 0.01 A- · P/E 34.5x C+ · PEG 0.84 B+
Why now. Health Information Services · market cap $31.6b. Down 37% from 52-week high of $310.50 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. PEG 0.84 — 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 +26% 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 37% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trailing P/E 34x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $244.14 (analyst consensus (n=28)) — fundamentals + valuation re-rating. 5 yr $357.45 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $530.25 if current growth sustains into durable earnings power.
16. IT — Gartner, Inc. · score 82.3
Information Technology Services · price $147.45 · 1Y $160.38 · 5Y $202.48 · 10Y $259.68
FCF $1.3b C+ · Rev +2.3% C · D/E n/a · P/E 14.6x A- · PEG 0.57 A-
Why now. Information Technology Services · market cap $9.9b. Down 59% from 52-week high of $357.33 — deep drawdown territory. PEG 0.57 — paying under fair value for the growth rate. 13 sell-side analysts rate this a Hold with a mean 1-yr target of $160.38 (implying +9% upside).
Moat. FCF converts 170% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 59% 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 $160.38 (analyst consensus (n=13)) — multiple re-rating thesis requires a catalyst. 5 yr $202.48 at ~7% CAGR — dividend + buyback compounding. 10 yr $259.68 if the moat survives secular pressure.
17. DECK — Deckers Outdoor Corporation · score 81.6
Footwear & Accessories · price $97.73 · 1Y $122.81 · 5Y $155.04 · 10Y $198.84
FCF $1.1b C+ · Rev +9.8% B · D/E 0.21 A- · P/E 13.9x A- · PEG 1.19 B+
Why now. Footwear & Accessories · market cap $13.6b. Down 22% 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 +26% 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.
18. PRDO — Perdoceo Education Corporation · score 81.6
Education & Training Services · price $31.72 · 1Y $34.26 · 5Y $43.25 · 10Y $55.47
FCF $225m C · Rev +17.7% B+ · D/E 0.12 A- · P/E 12.1x A- · PEG 0.65 A-
Why now. Education & Training Services · market cap $2.0b. 18% off the 52-week high of $38.50. Revenue growing +18%, comfortably above the S&P median. PEG 0.65 — paying under fair value for the growth rate.
Moat. Net margin 20% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 17% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 132% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon. 1-3 yr $34.26 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $43.25 at ~6% CAGR — dividend + buyback compounding. 10 yr $55.47 if the moat survives secular pressure.
19. META — Meta Platforms, Inc. · score 80.4
Internet Content & Information · price $593.87 · 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 0.87 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 0.87 — paying under fair value for the growth rate. 58 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $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.
20. APP — AppLovin Corporation · score 79.9
Advertising Agencies · price $412.73 · 1Y $654.60 · 5Y $958.40 · 10Y $1,422
FCF $4.4b B · Rev +66.4% A · D/E 1.63 C · P/E 35.9x C+ · PEG 1.08 B+
Why now. Advertising Agencies · market cap $138.7b. Down 45% 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 +59% 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. $138.7b 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 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 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 ~18% CAGR — compounding case rests on the competitive position widening. 10 yr $1,422 if current growth sustains into durable earnings power.
21. MELI — MercadoLibre, Inc. · score 79.4
Internet Retail · price $1819.74 · 1Y $2,215 · 5Y $3,243 · 10Y $4,810
FCF $11.8b A- · Rev +36.4% A · D/E 1.70 C+ · P/E 48.1x C · PEG 1.11 B+
Why now. Internet Retail · market cap $92.3b. 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 +22% upside).
Moat. ROE 26% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $92.3b 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.
22. PODD — Insulet Corporation · score 78.9
Medical Devices · price $165.00 · 1Y $238.22 · 5Y $348.77 · 10Y $517.38
FCF $416m C · Rev +31.9% A · D/E 0.78 C+ · P/E 38.6x C+ · PEG 1.44 B
Why now. Medical Devices · market cap $11.4b. 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 +44% 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 39x 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.
23. QCOM — QUALCOMM Incorporated · score 78.6
Semiconductors · price $170.04 · 1Y $221.23 · 5Y $279.30 · 10Y $358.20
FCF $12.5b A- · Rev +5.2% C+ · D/E 0.56 C+ · P/E 18.3x A- · PEG 0.53 A-
Why now. Semiconductors · market cap $179.2b. Down 35% from 52-week high of $259.92 — deep drawdown territory. PEG 0.53 — 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 +30% 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 35% 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 ~10% CAGR — dividend + buyback compounding. 10 yr $358.20 if the moat survives secular pressure.
24. FIVE — Five Below, Inc. · score 77.7
Specialty Retail · price $207.14 · 1Y $260.48 · 5Y $328.85 · 10Y $421.74
FCF $505m C+ · Rev +25.9% A- · D/E 0.86 B · P/E 26.2x C+ · PEG 0.98 B+
Why now. Specialty Retail · market cap $11.5b. 18% 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 +26% 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. NFLX — Netflix, Inc. · score 76.1
Entertainment · price $70.40 · 1Y $94.84 · 5Y $138.85 · 10Y $205.98
FCF $11.2b A- · Rev +16.0% B+ · D/E 0.55 B · P/E 22.1x B · PEG 1.57 C+
Why now. Entertainment · market cap $293.1b. Down 44% 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. $293.1b 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 44% 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.
26. YUMC — Yum China Holdings, Inc. · score 76.1
Restaurants · price $44.72 · 1Y $61.34 · 5Y $89.81 · 10Y $133.23
FCF $931m C+ · Rev +6.7% C+ · D/E 0.38 A- · P/E 17.1x B+ · PEG 1.09 B+
Why now. Restaurants · market cap $15.3b. Down 23% 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 +37% 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 ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $133.23 if current growth sustains into durable earnings power.
27. FISV — Fiserv, Inc. · score 75.5
Sector n/a · price $52.31 · 1Y $66.63 · 5Y $84.12 · 10Y $107.88
FCF $4.1b B · Rev +9.3% B · D/E n/a · P/E 8.9x A- · PEG 2.46 C
Why now. Sector n/a · market cap $27.9b. Down 64% 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 $66.63 (implying +27% 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 64% 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 $66.63 (analyst consensus (n=27)) — multiple re-rating thesis requires a catalyst. 5 yr $84.12 at ~10% CAGR — dividend + buyback compounding. 10 yr $107.88 if the moat survives secular pressure.
28. EME — EMCOR Group, Inc. · score 75.3
Engineering & Construction · price $742.75 · 1Y $991.57 · 5Y $1,252 · 10Y $1,605
FCF $1.1b C+ · Rev +18.3% B+ · D/E 0.13 A- · P/E 24.9x B+ · PEG 0.40 A
Why now. Engineering & Construction · market cap $33.1b. Down 22% from 52-week high of $951.96 — deep drawdown territory. Revenue growing +18%, comfortably above the S&P median. PEG 0.40 — paying under fair value for the growth rate. 7 sell-side analysts rate this a Buy with a mean 1-yr target of $991.57 (implying +34% 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.
29. ULTA — Ulta Beauty, Inc. · score 74.9
Specialty Retail · price $480.51 · 1Y $623.42 · 5Y $912.74 · 10Y $1,354
FCF $1.1b C+ · Rev +11.3% B · D/E 0.89 B · P/E 18.0x B+ · PEG 1.65 C+
Why now. Specialty Retail · market cap $20.7b. 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. TMUS — T-Mobile US, Inc. · score 74.1
Telecom Services · price $177.21 · 1Y $243.08 · 5Y $306.88 · 10Y $393.57
FCF $18.4b A- · Rev +9.7% B · D/E 2.14 C · P/E 18.5x B · PEG 0.71 A-
Why now. Telecom Services · market cap $190.1b. Down 32% from 52-week high of $261.56 — deep drawdown territory. PEG 0.71 — paying under fair value for the growth rate. 25 sell-side analysts rate this a Buy with a mean 1-yr target of $243.08 (implying +37% upside).
Moat. ROE 19% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 174% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined. $190.1b 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. D/E 2.14 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Down 32% 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 $243.08 (analyst consensus (n=25)) — multiple re-rating thesis requires a catalyst. 5 yr $306.88 at ~12% CAGR — dividend + buyback compounding. 10 yr $393.57 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.