This refresh
Data-driven refresh July 28, 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 (5,231 tickers); 1,773 scored on the quality-growth model (financials route to a separate card). Fundamentals from Yahoo Finance quoteSummary reconciled with as-reported SEC EDGAR filings; narrative authored by Groq (with Gemini and data-driven fallbacks).
Top Picks — quality compounders at a fair price
1. DOCS — Doximity, Inc. · score 90.7
Health Information Services · price $21.44 · 1Y $24.61 · 5Y $36.03 · 10Y $53.45
FCF $326m C · Rev +13.1% B+ · D/E 0.01 A · P/E 21.9x B+ · PEG 0.59 A-
Why now. DOCS’s AI‑driven workflow tool Ask is turning the platform into a daily clinical indispensable, fueling a virtuous loop of higher engagement and premium ad spend. The business is already delivering 13.1% revenue growth YoY, 30.4% profit margin and a 20.6% ROE, all while trading at a modest PEG of 0.59—a clear sign of cheap growth. The thesis hinges on Ask expanding its footprint across U.S. medical professionals, compounding earnings at double‑digit rates for years to come.
Moat. DOCS commands a locked‑in network of U.S. clinicians who rely on its HIPAA‑compliant newsfeed and AI assistant for real‑time evidence, creating high switching costs; the platform’s data moat also lets it sell premium, pharma‑sponsored content at pricing power reflected in its 30%+ margin and 20%+ ROE.
Risk. The market still doubts sustainable growth, pricing the stock at a forward P/E of 21.9 despite a 13% revenue expansion, and the Bull Rankings model’s reverse‑DCF implies only ~3% FCF growth for a decade—far below the historical trend. A slowdown in ad spend or a competitor’s AI offering could force the valuation down, and a breach of the 52‑week low (currently $17.15) would confirm the bear case.
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 89.2
Software - Application · price $249.18 · 1Y $269.61 · 5Y $394.73 · 10Y $585.56
FCF $10.3b A- · Rev +11.5% B · D/E 0.61 C+ · P/E 14.3x A- · PEG 0.65 A-
Why now. Adobe’s Digital Media subscription engine is the growth engine that will keep compounding earnings, powered by an 11.5% YoY revenue expansion, a staggering ROE of 62.8% and a massive free‑cash‑flow generation of $10.3 B. Those fundamentals give the stock a low‑multiple P/E of 14.3 while the market still values it at a 52‑week low of $190, meaning the upside is locked in the next wave of creator‑and‑enterprise subscriptions. The thesis rests on the relentless roll‑out of the Creative Cloud suite to new creators and enterprises, which will keep the cash‑flow engine humming.
Moat. Adobe’s moat lives in its integrated Creative Cloud and Experience Cloud platforms that lock in photographers, video editors, designers and marketers on a subscription basis, creating high switching costs and cross‑sell opportunities. The 62.8% ROE stems from pricing power in a category‑lead position where customers pay premium rates to access the only end‑to‑end toolset that spans creation to commerce, a capability rivals cannot replicate quickly.
Risk. The stock is vulnerable to a slowdown in subscription growth; the 11.5% revenue rise is already modest for a high‑growth name, and the Bull Rankings model’s reverse DCF shows the current price assumes 0% free‑cash‑flow growth for a decade. A dip in growth would leave the 14.3 P/E looking stretched, while the beta of 1.43 amplifies market volatility. A sustained decline in FCF or a missed earnings beat would trigger a sell‑off, confirming the bear case.
Horizon. 1-3 yr $269.61 (analyst consensus (n=34)) — fundamentals + valuation re-rating. 5 yr $394.73 at ~10% 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 88.7
Software - Infrastructure · price $14.88 · 1Y $18.05 · 5Y $26.43 · 10Y $39.20
FCF $413m C · Rev +46.6% A · D/E 0.20 B+ · P/E 23.3x B+ · PEG 0.50 A
Why now. DLocal’s cross‑border pay‑in engine for e‑commerce, streaming and ride‑hailing platforms is the growth engine that will keep earnings compounding – revenue is soaring +46.6% YoY, free cash flow sits at a healthy $413 m, and ROE is a blistering 34.6%. Those numbers feed the Bull Rankings model’s top‑scoring Growth pillar (100) and make the stock a high‑quality compounder. The thesis rests on the platform’s ability to lock in merchants worldwide and keep the growth trajectory alive.
Moat. The moat lives in DLocal’s “dLocal for Platforms” suite that aggregates hundreds of alternative payment methods into a single API, creating massive switching costs for merchants who need to serve fragmented emerging‑market consumers. That stickiness, combined with pricing power that drives a 34.6% ROE, lets DLocal capture a premium on every transaction and fend off copycats.
Risk. The reverse‑DCF shows the market is pricing in a -6% annual FCF decline for the next decade – a stark contrast to the 46.6% revenue surge and 18% profit margin today, meaning the current P/E of 23.3 is stretched if growth stalls. A slowdown in cross‑border spend or margin compression would validate the bear case, and a breach of the 52‑week low ($9.81) would be the trigger.
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
Software - Application · price $312.99 · 1Y $456.47 · 5Y $668.32 · 10Y $991.41
FCF $7.8b B+ · Rev +15.1% B+ · D/E 0.33 B · P/E 19.1x B+ · PEG 0.79 A-
Why now. Intuit’s QuickBooks segment is the engine of its 15.1% YoY revenue growth, powered by a 21.9% profit margin and a 22.2% ROE that our model flags as a 95‑point growth pillar. The company’s $7.8B free‑cash‑flow and a debt‑to‑equity of 0.33 give it the liquidity to raise dividends while still funding expansion. These factors combine to make the current $312.99 price a compelling entry point, as the market has yet to fully price in the sustained 15%+ revenue pace.
Moat. QuickBooks’ cloud‑based payroll, merchant payment, and financing stack locks in small‑ and mid‑market customers through high switching costs and a growing ecosystem of integrations. The segment’s 22.2% ROE reflects pricing power from its category leadership, which competitors cannot replicate quickly due to the entrenched billing and financial data workflows Intuit owns.
Risk. Intuit faces a bear case from its elevated 19.1× P/E, which already prices in a near‑future free‑cash‑flow growth of only –4% per year per our reverse‑DCF. A slowdown in QuickBooks adoption or a competitive push from larger SaaS players could erode margins, and the company’s 0.33 debt‑to‑equity leaves little room for margin compression before the dividend hike strains cash flow.
Horizon. 1-3 yr $456.47 (analyst consensus (n=33)) — fundamentals + valuation re-rating. 5 yr $668.32 at ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $991.41 if current growth sustains into durable earnings power.
5. NBIX — Neurocrine Biosciences, Inc. · score 87.1
Drug Manufacturers - Specialty & Generic · price $182.83 · 1Y $202.17 · 5Y $296.00 · 10Y $439.10
FCF $831m C+ · Rev +28.6% A- · D/E 0.14 B+ · P/E 28.2x B · PEG 0.50 A
Why now. The bull case hinges on INGREZZA’s expanding market share in tardive dyskinesia, a disorder with sizable U.S. addressable spend, driving a revenue runway that fuels compounding growth. NBIX delivers 28.6% YoY revenue growth, a 21.6% profit margin and a 19.6% ROE, all while trading at a modest PE of 28.2x versus peers. The thesis rests on the ability to keep scaling INGREZZA and Orilissa sales, keeping free‑cash‑flow growth near the model‑implied 13% CAGR.
Moat. NBIX’s moat stems from its FDA‑approved, first‑in‑class oral therapy INGREZZA, which faces high switching costs for neurologists treating tardive dyskinesia and Huntington’s chorea, and its proprietary formulation pipeline that locks in reimbursement pathways. The 19.6% ROE reflects pricing power from being the sole commercial provider in these niche neurological categories, a position competitors cannot replicate quickly without costly clinical trials.
Risk. The bear case focuses on the concentration risk of INGREZZA, which accounts for the majority of NBIX’s revenue; any adverse safety signal or successful competitor launch could compress the PE of 28.2x and stall the 28.6% revenue growth. A modest debt‑to‑equity of 0.14 offers little cushion if cash flow falters, and a beta of 0.39 may mask underlying volatility in specialty drug pricing. A negative Phase 3 readout for NBI-1076986 would confirm the downside and crush the growth narrative.
Horizon. 1-3 yr $202.17 (analyst consensus (n=27)) — fundamentals + valuation re-rating. 5 yr $296.00 at ~10% 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 86.5
Semiconductors · price $197.01 · 1Y $302.83 · 5Y $443.37 · 10Y $657.71
FCF $119.1b A · Rev +70.7% A · D/E 0.07 A- · P/E 30.2x B · PEG 0.54 A-
Why now. NVDA’s AI‑accelerated data‑center GPUs are driving a 70.7% YoY revenue surge, backed by a 63% profit margin and $119.1 billion free cash flow—proof that the Compute & Networking segment is scaling at a pace no other chipmaker can match. Our model’s 86.5/100 quality‑growth score, with Growth at 100, shows the company is a high‑quality compounder that can keep reinvesting in AI software and platform ecosystems. The bull case hinges on the sustained 70%+ margin and the $119.1 billion FCF that fuels dividend hikes and share buybacks, ensuring returns stay above the 47%/yr free‑cash‑flow growth implied by today’s price.
Moat. NVDA’s dominance in the AI infrastructure market is cemented by its proprietary CUDA architecture and the tight integration of its GPUs with NVIDIA AI software, creating a switching cost that forces data‑center operators to stay. The company’s high ROE of 81.7% reflects pricing power from being the sole provider of high‑performance GPUs for autonomous vehicles and enterprise workstations, where customers cannot easily substitute cheaper alternatives.
Risk. The bear case rests on NVDA’s beta of 2.21 and a P/E of 30.2, signaling that the market is pricing in aggressive growth expectations that could falter if AI demand slows or if a rival like AMD delivers a comparable GPU platform. A debt‑to‑equity ratio of 0.07 is low, but any sudden capital‑intensive shift—such as a new data‑center chip—could erode margins and force a costly capital raise, breaking the current valuation premium.
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. LRN — Stride, Inc. · score 85.7
Education & Training Services · price $95.88 · 1Y $110.26 · 5Y $161.43 · 10Y $239.48
FCF $414m C · Rev +10.9% B · D/E 0.33 A- · P/E 15.0x A- · PEG 0.51 A-
Why now. Stride’s integrated virtual‑school platform is the engine of a 10.9% FY revenue growth, fueling a 12.2% profit margin and a solid ROE of 18.8%. Our Bull Rankings model flags Growth as the strongest pillar (89), meaning the business compounds earnings faster than peers, and the buy‑back signal confirms management is returning cash to shareholders. The thesis rests on the continued expansion of blended‑learning districts that lock in recurring software subscriptions and services.
Moat. The company’s end‑to‑end curriculum and student‑tracking suite creates high switching costs for districts that have invested in data integration and teacher training, locking in multi‑year contracts. That sticky revenue base underpins the 18.8% ROE, reflecting pricing power derived from being the default technology partner for virtual and blended public schools.
Risk. The market is pricing in a steep slowdown, as the reverse DCF implies a -7% annual free‑cash‑flow trajectory—far below the 10.9% revenue growth we see today—so any margin compression or enrollment dip would validate that pessimism. A pullback in district spending or a successful competitor’s low‑cost alternative could crush the 12.2% margin, and a breach of the 52‑week high of $171.17 would signal that the upside is already exhausted.
Horizon. 1-3 yr $110.26 (structural (no analyst coverage)) — fundamentals + valuation re-rating. 5 yr $161.43 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $239.48 if current growth sustains into durable earnings power.
8. TTD — The Trade Desk, Inc. · score 85.5
Advertising Agencies · price $18.91 · 1Y $24.32 · 5Y $35.61 · 10Y $52.82
FCF $842m C+ · Rev +15.5% B+ · D/E 0.17 A- · P/E 21.5x B · PEG 0.85 B+
Why now. The Trade Desk’s CTV and video‑ad platform is the engine of its 15.5% YoY revenue growth, 14.6% profit margin and $842 m free‑cash‑flow, all powered by a 93‑point Growth pillar in our model. These metrics show a high‑quality compounder that can keep adding value as advertisers shift spend to connected TV and audio. The thesis rests on the sustained compounding of that growth, which our model’s 85.5‑point quality‑growth score confirms.
Moat. TTD’s platform spans televisions, streaming devices, mobile and digital‑out‑of‑home, giving agencies and advertisers a single, data‑rich interface that locks in clients through high switching costs and a network effect—each new campaign adds more inventory data, raising marginal value for all users. This breadth and integration create a durable edge that competitors cannot replicate quickly.
Risk. The weak Value pillar (77) and a reverse‑DCF implied free‑cash‑flow growth of –4% signal that the market is already pricing in significant upside. Coupled with a 21.5 P/E, 1.04 beta and 0.17 debt‑to‑equity, the risk is that aggressive competition or a slowdown in CTV adoption could erode margins and growth, breaking the bull thesis.
Horizon. 1-3 yr $24.32 (analyst consensus (n=30)) — fundamentals + valuation re-rating. 5 yr $35.61 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $52.82 if current growth sustains into durable earnings power.
9. HRMY — Harmony Biosciences Holdings, Inc. · score 85.2
Biotechnology · price $35.77 · 1Y $45.40 · 5Y $66.47 · 10Y $98.60
FCF $342m C · Rev +20.7% A- · D/E 0.18 B+ · P/E 14.4x A- · PEG 0.67 A-
Why now. The bull case hinges on pitolisant’s expansion beyond narcolepsy – its Phase 3 trial in Prader‑Willi Syndrome and Phase 2 work in Myotonic Dystrophy will unlock new revenue streams, compounding growth at a sector‑leading 20.7% YoY revenue growth. The company already delivers a healthy 16.2% profit margin and trades at a modest PE of 14.4x with a sub‑1.0 PEG of 0.67, meaning the market is pricing in slower growth than the business can sustain. Our Bull Rankings model gives HRMY an 85.2/100 quality‑growth score, with Growth as the strongest pillar, reinforcing that the compounding engine is real and durable.
Moat. HRMY’s moat rests on the patented mechanism of pitolisant, the only FDA‑approved therapy for excessive daytime sleepiness in narcolepsy, giving it pricing power in a niche rare‑neurology market. The company’s commercial foothold in U.S. specialty pharmacies and its pipeline of rare‑disease indications create high switching costs for patients and physicians, while the 16% ROE reflects the premium pricing and limited competition inherent to these orphan therapies.
Risk. The bear case centers on the concentration risk of relying on WAKIX as the sole revenue driver; any delay or failure in the PWS or DM1 trials would stall growth and expose the modest PE of 14.4x as insufficient to justify the current price. Moreover, the Bull Rankings reverse‑DCF shows the market is assuming a -19% annual free‑cash‑flow growth for the next decade, a stark mismatch to the actual 20.7% revenue expansion, meaning any slowdown would trigger a sharp re‑rating. A missed trial readout would confirm this risk and crush the upside.
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.
10. EXLS — ExlService Holdings, Inc. · score 85.1
Information Technology Services · price $30.53 · 1Y $40.13 · 5Y $58.75 · 10Y $87.15
FCF $297m C · Rev +13.4% B+ · D/E 0.67 C+ · P/E 19.4x B+ · PEG 0.89 B+
Why now. EXLS presents a compelling growth opportunity, underpinned by our model's Growth (91) pillar, which is supported by its robust 13.4% FY YoY revenue growth and an attractive PEG ratio of 0.89. The company's strategic focus on data and AI-driven digital operations and analytics-driven services, particularly within the resilient Insurance and Healthcare and Life Sciences segments, positions it for continued compounding. The Bull Rankings model's signal of management buying back stock further reinforces confidence in the intrinsic value, especially when the current price implies only ~1%/yr free-cash-flow growth sustained for 10 years, a stark contrast to its actual revenue expansion.
Moat. EXLS's competitive moat is built on its deep, specialized expertise in providing complex analytics-driven services such as actuarial and risk analytics, claims management, and premium and benefit administration. This integration into critical client operations across industries like Insurance and Banking, Capital Markets, and Diversified Industries creates significant switching costs. The company's exceptional 32.3% Return on Equity reflects its strong pricing power and efficient capital allocation, stemming from its proprietary data and AI capabilities that are difficult for competitors to replicate quickly or cost-effectively.
Risk. Despite strong operational performance, our model identifies Value (80) as EXLS's weakest pillar, and a skeptic would highlight the current P/E of 19.4 as potentially overstretched given the market's implied long-term free cash flow growth. The reverse DCF suggests the market is pricing in only ~1%/yr FCF growth over the next decade, indicating skepticism about the sustainability of its current 13.4% revenue growth translating into proportional FCF. A significant deceleration in new business acquisition within its key segments or a sustained contraction in its 11.7% profit margin due to increased competition in digital operations would confirm the bear case.
Horizon. 1-3 yr $40.13 (analyst consensus (n=8)) — fundamentals + valuation re-rating. 5 yr $58.75 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $87.15 if current growth sustains into durable earnings power.
11. ADMA — ADMA Biologics, Inc. · score 84.7
Biotechnology · price $8.79 · 1Y $17.00 · 5Y $21.46 · 10Y $27.52
FCF $108m C · Rev +11.0% B · D/E 1.11 C · P/E 12.9x A- · PEG 0.66 A-
Why now. Biotechnology · market cap $2.0b. Down 57% from 52-week high of $20.46 — deep drawdown territory. Revenue growing +11%, comfortably above the S&P median. PEG 0.66 — paying under fair value for the growth rate. 5 sell-side analysts rate this a Buy with a mean 1-yr target of $17.00 (implying +93% upside).
Moat. Net margin 32% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 42% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. Pharma moat is patent runway + pipeline depth — a single approved molecule funds the next generation of bets. Late-stage trials carry binary readouts that swing valuation 30%+.
Risk. Down 57% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trial-readout binary — late-stage clinical trials carry approve/reject outcomes that swing valuation 30%+; the equity is effectively a portfolio of these binary events, not a steady cash-flow business.
Horizon. 1-3 yr $17.00 (analyst consensus (n=5)) — multiple re-rating thesis requires a catalyst. 5 yr $21.46 at ~20% CAGR — dividend + buyback compounding. 10 yr $27.52 if the moat survives secular pressure.
12. CARG — CarGurus, Inc. · score 83.6
Auto & Truck Dealerships · price $36.42 · 1Y $37.77 · 5Y $55.30 · 10Y $82.03
FCF $293m C · Rev +14.0% B+ · D/E 0.79 B · P/E 19.2x B · PEG 1.06 B+
Why now. Auto & Truck Dealerships · market cap $3.3b. 8% off the 52-week high of $39.42. Revenue growing +14%, comfortably above the S&P median. 13 sell-side analysts rate this a Buy with a mean 1-yr target of $37.77 (implying +4% upside).
Moat. Net margin 16% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 63% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 196% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon. 1-3 yr $37.77 (analyst consensus (n=13)) — fundamentals + valuation re-rating. 5 yr $55.30 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $82.03 if current growth sustains into durable earnings power.
13. DXCM — DexCom, Inc. · score 83.2
Medical Devices · price $74.85 · 1Y $86.16 · 5Y $126.15 · 10Y $187.13
FCF $1.4b C+ · Rev +16.1% B+ · D/E 0.47 B · P/E 32.1x B · PEG 1.37 B
Why now. Medical Devices · market cap $28.9b. 17% off the 52-week high of $89.98. Revenue growing +16%, comfortably above the S&P median. 25 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $86.16 (implying +15% upside).
Moat. Net margin 19% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 31% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 154% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Beta 1.45 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 32x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $86.16 (analyst consensus (n=25)) — fundamentals + valuation re-rating. 5 yr $126.15 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $187.13 if current growth sustains into durable earnings power.
14. RMD — ResMed Inc. · score 83.1
Medical Instruments & Supplies · price $208.96 · 1Y $248.60 · 5Y $363.98 · 10Y $539.93
FCF $1.8b C+ · Rev +10.3% B · D/E 0.13 B+ · P/E 20.1x B+ · PEG 1.21 B
Why now. Medical Instruments & Supplies · market cap $30.3b. Down 29% from 52-week high of $293.81 — deep drawdown territory. Revenue growing +10%, comfortably above the S&P median. 15 sell-side analysts rate this a Buy with a mean 1-yr target of $248.60 (implying +19% upside).
Moat. Net margin 27% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 23% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 115% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. 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 $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.
15. EPAM — EPAM Systems, Inc. · score 82.6
Information Technology Services · price $100.40 · 1Y $135.94 · 5Y $171.62 · 10Y $220.10
FCF $544m C+ · Rev +14.2% B+ · D/E 0.08 B+ · P/E 14.4x A- · PEG 0.46 A
Why now. Information Technology Services · market cap $5.2b. Down 55% 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 +35% 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 55% 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 ~11% CAGR — dividend + buyback compounding. 10 yr $220.10 if the moat survives secular pressure.
16. IT — Gartner, Inc. · score 81.9
Information Technology Services · price $155.84 · 1Y $160.38 · 5Y $202.48 · 10Y $259.68
FCF $1.3b C+ · Rev +2.3% C · D/E n/a · P/E 15.4x A- · PEG 0.64 A-
Why now. Information Technology Services · market cap $10.4b. Down 56% from 52-week high of $353.77 — deep drawdown territory. PEG 0.64 — 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 +3% 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 56% 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 ~5% CAGR — dividend + buyback compounding. 10 yr $259.68 if the moat survives secular pressure.
17. VEEV — Veeva Systems Inc. · score 81.9
Health Information Services · price $201.20 · 1Y $244.14 · 5Y $357.45 · 10Y $530.25
FCF $1.7b C+ · Rev +16.2% B+ · D/E 0.01 A- · P/E 35.7x C+ · PEG 0.88 B+
Why now. Health Information Services · market cap $32.7b. Down 35% from 52-week high of $310.50 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. PEG 0.88 — 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 +21% 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 35% 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 36x 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 ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $530.25 if current growth sustains into durable earnings power.
18. PRDO — Perdoceo Education Corporation · score 81.4
Education & Training Services · price $32.84 · 1Y $35.47 · 5Y $44.78 · 10Y $57.42
FCF $225m C · Rev +17.7% B+ · D/E 0.12 A- · P/E 12.5x A- · PEG 0.68 A-
Why now. Education & Training Services · market cap $2.1b. 15% off the 52-week high of $38.50. Revenue growing +18%, comfortably above the S&P median. PEG 0.68 — 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 $35.47 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $44.78 at ~6% CAGR — dividend + buyback compounding. 10 yr $57.42 if the moat survives secular pressure.
19. META — Meta Platforms, Inc. · score 80.9
Internet Content & Information · price $593.41 · 1Y $824.68 · 5Y $1,041 · 10Y $1,335
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. 57 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $824.68 (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 $824.68 (analyst consensus (n=57)) — multiple re-rating thesis requires a catalyst. 5 yr $1,041 at ~12% CAGR — dividend + buyback compounding. 10 yr $1,335 if the moat survives secular pressure.
20. APP — AppLovin Corporation · score 80.5
Advertising Agencies · price $418.22 · 1Y $654.60 · 5Y $958.40 · 10Y $1,422
FCF $4.4b B · Rev +66.4% A · D/E 1.63 C · P/E 36.3x C+ · PEG 1.13 B+
Why now. Advertising Agencies · market cap $140.5b. Down 44% 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 +57% 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. $140.5b 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 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 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 79.7
Internet Retail · price $1862.52 · 1Y $2,215 · 5Y $3,243 · 10Y $4,810
FCF $11.8b A- · Rev +36.4% A · D/E 1.70 C+ · P/E 49.2x C · PEG 1.12 B+
Why now. Internet Retail · market cap $94.4b. Down 27% from 52-week high of $2548.50 — deep drawdown territory. Revenue growing +36% — in hypergrowth territory. 24 sell-side analysts rate this a Buy with a mean 1-yr target of $2,215 (implying +19% upside).
Moat. ROE 26% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $94.4b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Trailing P/E 49x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. E-commerce competition — Amazon, Walmart, Shein, and Temu have each forced the rest of the category to compete on price, fulfillment speed, or assortment; sustaining margins requires one of those being structurally defended.
Horizon. 1-3 yr $2,215 (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. DECK — Deckers Outdoor Corporation · score 79.4
Footwear & Accessories · price $103.92 · 1Y $122.81 · 5Y $155.04 · 10Y $198.84
FCF $1.1b C+ · Rev +9.8% B · D/E 0.21 A- · P/E 14.8x A- · PEG 1.21 B
Why now. Footwear & Accessories · market cap $14.2b. 17% off the 52-week high of $125.45. 21 sell-side analysts rate this a Buy with a mean 1-yr target of $122.81 (implying +18% 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 ~8% CAGR — dividend + buyback compounding. 10 yr $198.84 if the moat survives secular pressure.
23. PODD — Insulet Corporation · score 79
Medical Devices · price $167.47 · 1Y $235.54 · 5Y $344.86 · 10Y $511.57
FCF $416m C · Rev +31.9% A · D/E 0.78 C+ · P/E 39.2x C+ · PEG 1.46 B
Why now. Medical Devices · market cap $11.6b. Down 53% from 52-week high of $354.88 — deep drawdown territory. Revenue growing +32% — in hypergrowth territory. 24 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $235.54 (implying +41% 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 53% 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 $235.54 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $344.86 at ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $511.57 if current growth sustains into durable earnings power.
24. MU — Micron Technology, Inc. · score 78.8
Semiconductors · price $820.53 · 1Y $1,507 · 5Y $1,903 · 10Y $2,441
FCF $26.2b A · Rev +167.0% A · D/E 0.06 A- · P/E 18.6x A- · PEG 0.13 A
Why now. Semiconductors · market cap $926.7b. Down 35% from 52-week high of $1255.00 — deep drawdown territory. Revenue growing +167% — in hypergrowth territory. PEG 0.13 — paying under fair value for the growth rate. 42 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $1,507 (implying +84% upside).
Moat. Net margin 56% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 50% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $926.7b 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 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 2.14 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. P/S 10.3x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon. 1-3 yr $1,507 (analyst consensus (n=42)) — multiple re-rating thesis requires a catalyst. 5 yr $1,903 at ~18% CAGR — dividend + buyback compounding. 10 yr $2,441 if the moat survives secular pressure.
25. FIVE — Five Below, Inc. · score 78.2
Specialty Retail · price $207.99 · 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. 17% 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 +25% 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 76.1
Entertainment · price $72.39 · 1Y $94.33 · 5Y $138.10 · 10Y $204.87
FCF $11.2b A- · Rev +16.0% B+ · D/E 0.55 B · P/E 22.8x B · PEG 1.58 C+
Why now. Entertainment · market cap $301.4b. Down 43% 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 $94.33 (implying +30% 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. $301.4b market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk. Down 43% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 1.52 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.
Horizon. 1-3 yr $94.33 (analyst consensus (n=45)) — fundamentals + valuation re-rating. 5 yr $138.10 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $204.87 if current growth sustains into durable earnings power.
27. EME — EMCOR Group, Inc. · score 75.4
Engineering & Construction · price $705.82 · 1Y $991.57 · 5Y $1,252 · 10Y $1,605
FCF $1.1b C+ · Rev +18.3% B+ · D/E 0.13 A- · P/E 23.7x B+ · PEG 0.40 A
Why now. Engineering & Construction · market cap $31.4b. Down 26% 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 +40% 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 ~12% CAGR — dividend + buyback compounding. 10 yr $1,605 if the moat survives secular pressure.
28. FISV — Fiserv, Inc. · score 75.4
Sector n/a · price $54.21 · 1Y $66.63 · 5Y $84.12 · 10Y $107.88
FCF $4.1b B · Rev +9.3% B · D/E n/a · P/E 9.2x A- · PEG 2.55 C
Why now. Sector n/a · market cap $28.9b. Down 62% from 52-week high of $142.83 — deep drawdown territory. 27 sell-side analysts rate this a Hold with a mean 1-yr target of $66.63 (implying +23% 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 62% 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 ~9% CAGR — dividend + buyback compounding. 10 yr $107.88 if the moat survives secular pressure.
29. ULTA — Ulta Beauty, Inc. · score 75.2
Specialty Retail · price $501.52 · 1Y $623.42 · 5Y $912.74 · 10Y $1,354
FCF $1.1b C+ · Rev +11.3% B · D/E 0.89 B · P/E 18.8x B · PEG 1.67 C+
Why now. Specialty Retail · market cap $21.6b. Down 30% 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 +24% 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. 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 $623.42 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $912.74 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $1,354 if current growth sustains into durable earnings power.
30. YUMC — Yum China Holdings, Inc. · score 75.1
Restaurants · price $45.53 · 1Y $61.34 · 5Y $89.81 · 10Y $133.23
FCF $931m C+ · Rev +6.7% C+ · D/E 0.38 A- · P/E 17.4x B+ · PEG 1.12 B+
Why now. Restaurants · market cap $15.6b. Down 22% 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 +35% 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.
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.