This refresh
Data-driven refresh August 3, 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 (5,225 tickers); 1,784 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 90.6
Health Information Services · price $21.66 · 1Y $24.61 · 5Y $36.03 · 10Y $53.45
FCF $326m C · Rev +13.1% B+ · D/E 0.01 A · P/E 22.1x B+ · PEG 0.59 A-
Why now. Doximity’s AI‑powered Ask assistant is unlocking deeper clinical workflow integration, driving a 13.1% YoY revenue growth, a 30.4% profit margin, and a 20.6% ROE that together justify a premium – the stock’s upside hinges on scaling this AI moat to sustain compounding earnings.
Moat. The platform’s network of U.S. physicians creates a high‑switching‑cost ecosystem; Ask and the personalized newsfeed embed Doximity into daily clinical decisions, while the company’s pricing power—evidenced by a 20.6% ROE—stems from being the de‑facto professional hub that advertisers and health systems can’t reach elsewhere.
Risk. The market is pricing a forward P/E of 22.1, yet the Bull Rankings reverse‑DCF implies only ~2% annual free‑cash‑flow growth for a decade—far below the 13.1% revenue expansion, suggesting optimism is baked in; a slowdown in AI adoption or a shift to competing platforms would force the valuation down, and a sustained beta of 1.21 amplifies downside on market volatility.
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 88.9
Software - Application · price $251.34 · 1Y $269.61 · 5Y $394.73 · 10Y $585.56
FCF $10.3b A- · Rev +11.5% B · D/E 0.61 C+ · P/E 14.4x A- · PEG 0.68 A-
Why now. Adobe’s Digital Experience platform is the engine that turns creative content into measurable commerce, and its 11.5% YoY revenue growth, 28.7% profit margin, and $10.3B free‑cash‑flow demonstrate that the company is not only growing but doing so with a high return on invested capital. Our model’s 88.9/100 quality‑growth score, anchored by a 92 in Quality, shows that Adobe’s ability to generate durable, high‑margin cash is already priced in, and the 0.68 PEG ratio confirms that the market is not over‑optimistic about future earnings. The single most compelling thesis is that Adobe’s integrated Digital Experience stack will continue to capture a growing share of digital‑marketing spend, delivering compounding growth that justifies a 12% annualized return over the next decade.
Moat. Adobe’s moat is its tightly integrated suite of creative and experience products that lock in photographers, video editors, and marketers who rely on seamless workflows across Photoshop, Illustrator, and Experience Cloud. The platform’s subscription model creates high switching costs, while the 62.8% ROE reflects pricing power that comes from category leadership in both creative and marketing automation, making it difficult for new entrants to erode Adobe’s market share.
Risk. The bear case hinges on Adobe’s high beta of 1.4 and the fact that its P/E of 14.4, while modest, is still elevated relative to peers with similar growth prospects. A slowdown in the digital‑marketing spend cycle or a disruptive competitor that offers a lower‑cost, integrated creative‑to‑commerce solution could erode Adobe’s margin and revenue growth, breaking the 11.5% YoY trajectory that underpins the bullish thesis.
Horizon. 1-3 yr $269.61 (analyst consensus (n=34)) — fundamentals + valuation re-rating. 5 yr $394.73 at ~9% 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 88.5
Software - Infrastructure · price $15.31 · 1Y $18.25 · 5Y $26.72 · 10Y $39.64
FCF $413m C · Rev +46.6% A · D/E 0.20 B+ · P/E 23.9x B+ · PEG 0.51 A-
Why now. DLocal’s cross‑border pay‑in platform for high‑growth merchants such as streaming and ride‑hailing is compounding revenue at a blistering 46.6% YoY, fueling a free‑cash‑flow haul of $413 m and delivering a stellar ROE of 34.6%—the engine that powers our model’s 100‑point Growth pillar. With a PEG of 0.51, the market is pricing in only modest cash‑flow acceleration, yet the business’s network of hundreds of alternative payment methods creates a self‑reinforcing loop that should keep growth alive. The thesis rests on the relentless expansion of global e‑commerce payments that DLocal uniquely captures.
Moat. The moat lives in DLocal’s integrated pay‑in suite that aggregates over 200 local cards, bank transfers and alternative payment methods, locking merchants into a single‑point solution that is costly to replace. This breadth translates into pricing power, evident in a 34.6% ROE, as merchants pay premium fees for the frictionless global reach and compliance infrastructure that competitors can’t replicate quickly.
Risk. The Bull Rankings model flags a reverse‑DCF implied free‑cash‑flow growth of –6% per year, meaning the current P/E of 23.9 already assumes unsustainable optimism; any slowdown from the 46.6% revenue surge would crush margins and drive the stock toward its 52‑week low of $10.11. A key bear trigger is a material dip in cross‑border transaction volume, which would immediately validate the over‑valued pricing and force a re‑rating.
Horizon. 1-3 yr $18.25 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $26.72 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $39.64 if current growth sustains into durable earnings power.
4. PGY — Pagaya Technologies Ltd. · score 88.5
Software - Infrastructure · price $22.23 · 1Y $28.50 · 5Y $41.73 · 10Y $61.90
FCF $252m C · Rev +25.6% A- · D/E 1.34 C · P/E 15.8x A- · PEG 0.05 A
Why now. Pagaya Technologies is a compelling growth story, leveraging its proprietary AI-powered technology to revolutionize credit access for financial services partners. With a staggering 25.6% FY YoY revenue growth and an incredibly low 0.05 PEG ratio, the company is expanding rapidly and efficiently. Our model's strongest pillar, Growth, scores a perfect 100/100, underscoring the market's recognition of Pagaya's rapid expansion, which is further evidenced by a healthy 9.1% profit margin. The crux of the thesis rests on the compounding network effect of its AI, which continuously improves its Decline Monetization, Dual Look, and First Look products, attracting more partners and driving sustained volume.
Moat. Pagaya's durable edge stems from its sophisticated data science and proprietary AI-powered technology, which is embedded directly into the credit decisioning process of its financial services partners. This creates significant switching costs and a powerful network effect: as more loan applications are evaluated through its network, the AI models become more accurate and efficient, enhancing the value proposition for both partners and institutional investors. While our model's Quality pillar, at 70/100, is its weakest, it still indicates a solid foundation, suggesting that while the competitive moat is present, it might not be as impenetrable as its growth suggests, yet it continuously strengthens with each new data point.
Risk. The primary bear case against Pagaya centers on its significant exposure to the cyclicality and health of the broader financial services sector and the appetite of institutional investors for new credit. The company's high Beta of 5.37 signals extreme sensitivity to market sentiment and economic downturns, amplifying any sector-specific headwinds. Our model's Reverse DCF implies a sustained ~-13%/year free-cash-flow growth for 10 years at the current price, which starkly contrasts with the reported 25.6% revenue growth, suggesting the market is pricing in significant future headwinds or a sharp deceleration in FCF generation. The 'Diluting shareholders' caution signal further suggests potential pressure on per-share metrics. A sustained contraction in the number of financial services partners or a significant decline in the volume of loan applications processed through its network would confirm the bear case.
Horizon. 1-3 yr $28.50 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $41.73 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $61.90 if current growth sustains into durable earnings power.
5. NBIX — Neurocrine Biosciences, Inc. · score 87.4
Drug Manufacturers - Specialty & Generic · price $166.23 · 1Y $211.09 · 5Y $309.06 · 10Y $458.47
FCF $870m C+ · Rev +34.4% A · D/E 0.12 B+ · P/E 24.3x B+ · PEG 0.47 A
Why now. NBIX is poised to compound on its dominant position in the underserved uterine‑fibroid market with Oriahnn, a first‑in‑class oral therapy that is already driving 34.4% YoY revenue growth. The business backs that growth with a 20.9% profit margin and robust $870 m of free cash flow, giving it the cash to reinvest and outpace peers. The Bull Rankings model rates its Growth pillar at 100, making the compounding engine the single most compelling reason to own now.
Moat. Oriahnn, together with INGREZZA and Orilissa, gives NBIX a protected franchise in niche neurological and endocrine indications where few competitors have FDA‑approved oral options, creating high switching costs for patients and physicians. This pricing power translates into a solid 19.1% ROE, reflecting the company’s ability to generate returns on capital that rivals cannot easily replicate without comparable IP and regulatory clearance.
Risk. The stock trades at a forward‑PE of 24.3× and a PEG of just 0.47, implying the market already expects sustained double‑digit growth; any slowdown in revenue acceleration or margin compression would expose the valuation gap. A key bear trigger is the model’s “Diluting shareholders” signal—if NBIX raises equity to fund pipelines, earnings per share could fall and the current premium would evaporate.
Horizon. 1-3 yr $211.09 (analyst consensus (n=27)) — fundamentals + valuation re-rating. 5 yr $309.06 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $458.47 if current growth sustains into durable earnings power.
6. LRN — Stride, Inc. · score 87.2
Education & Training Services · price $80.10 · 1Y $92.11 · 5Y $134.87 · 10Y $200.06
FCF $414m C · Rev +10.9% B · D/E 0.33 A- · P/E 12.5x A- · PEG 0.45 A
Why now. Stride’s virtual‑school platform, the core of its integrated systems and services for public districts, is riding a 10.9% YoY revenue growth that is already reflected in a 12.5× P/E and a 12.2% profit margin—yet the Bull Rankings model gives it a 93‑point value score and a 87.2 overall quality‑growth rating. The company’s $414 m free‑cash‑flow, coupled with a 0.33 debt‑to‑equity and a 0.1 beta, shows it can fund aggressive buybacks while staying financially lean. The thesis hinges on the sustained expansion of its blended‑school software, which is priced at a premium that the model’s reverse‑DCF (‑11% implied growth) still deems optimistic relative to the 10.9% revenue pace.
Moat. Stride’s moat is its end‑to‑end virtual‑school stack that serves public districts and blended schools—an ecosystem that locks in schools through bundled curriculum, software, and support services. The 18.8% ROE signals pricing power from this integrated offering, while the low debt and high free‑cash‑flow allow continuous investment in platform enhancements that raise switching costs for competitors.
Risk. The bear case rests on the company’s thin 12.2% margin and the fact that its 12.5× P/E is already high for a growth name; any slowdown in the public‑school software cycle or a new entrant that can replicate the bundled solution could erode margins. A 0.33 debt‑to‑equity ratio also limits flexibility if capital needs rise. A margin dip below 10% would confirm the bear thesis and break the bull case.
Horizon. 1-3 yr $92.11 (structural (no analyst coverage)) — fundamentals + valuation re-rating. 5 yr $134.87 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $200.06 if current growth sustains into durable earnings power.
7. NVDA — NVIDIA Corporation · score 86.2
Semiconductors · price $206.64 · 1Y $302.83 · 5Y $443.37 · 10Y $657.71
FCF $119.1b A · Rev +70.7% A · D/E 0.07 B+ · P/E 31.7x B · PEG 0.55 A-
Why now. NVIDIA’s AI‑driven data‑center platform in the Compute & Networking segment is the engine of compounding growth, delivering 70.7% YoY revenue growth, $119.1 B of free cash flow and a 63% profit margin that fuels reinvestment and buybacks. Our Bull Rankings model gives NVDA an 86.2/100 quality‑growth score, with Growth as the strongest pillar, underscoring the durability of this AI tailwind. The thesis hinges on the continued capture of AI infrastructure spend, which should keep compounding earnings at a multi‑digit pace.
Moat. NVDA’s moat rests on its proprietary GPU architecture and AI software stack that power the Compute & Networking segment, creating massive switching costs for hyperscale cloud providers and enterprise data centers. The 81.7% ROE reflects pricing power derived from category leadership in accelerated computing, while the low 0.07 debt‑to‑equity ratio gives it financial flexibility to out‑spend rivals on R&D and ecosystem development.
Risk. The stock trades at a lofty 31.7 × PE and a 2.21 beta, meaning any slowdown in AI spend or a market pull‑back could hammer valuation. If revenue growth falls back toward the high‑single digits, the implied 48% FCF growth in our reverse‑DCF becomes unrealistic, triggering a sharp re‑rating. A sustained margin compression or a disruptive competitor in the data‑center GPU space would confirm the bear case.
Horizon. 1-3 yr $302.83 (analyst consensus (n=58)) — fundamentals + valuation re-rating. 5 yr $443.37 at ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $657.71 if current growth sustains into durable earnings power.
8. TTD — The Trade Desk, Inc. · score 86.1
Advertising Agencies · price $18.30 · 1Y $24.32 · 5Y $35.61 · 10Y $52.82
FCF $842m C+ · Rev +15.5% B+ · D/E 0.17 A- · P/E 20.8x B · PEG 0.86 B+
Why now. The Trade Desk’s dominance in programmatic CTV and video inventory fuels a compounding engine that will keep revenue expanding at 15.5% YoY while delivering a 14.6% profit margin and $842 m of free cash flow. Our Bull Rankings model gives TTD an 86.1/100 quality‑growth score, with Growth as the strongest pillar, underscoring the durability of its ad‑tech platform. Because the reverse‑DCF implies a -5% FCF growth rate—far below the actual growth trajectory—the market is pricing in undue pessimism, setting the stage for a sharp upside.
Moat. TTD’s unified buying platform locks in advertising agencies and brands across CTV, display, audio and DOOH, creating high switching costs and a data moat that rivals can’t replicate quickly. The 17.6% ROE reflects pricing power derived from its category‑leadership in cross‑device inventory, allowing the firm to capture premium spend while maintaining strong margins.
Risk. At a forward P/E of 20.8, the stock trades at a premium that the consensus “hold” rating (2.53/5) suggests is stretched, especially as the Bull Rankings model flags Value as the weakest pillar. A slip in revenue growth or margin compression would validate the market’s caution; a break below the 52‑week low of $16.70 would be the trigger that confirms the bear case.
Horizon. 1-3 yr $24.32 (analyst consensus (n=30)) — fundamentals + valuation re-rating. 5 yr $35.61 at ~14% 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 85.4
Biotechnology · price $35.60 · 1Y $45.50 · 5Y $66.62 · 10Y $98.82
FCF $342m C · Rev +20.7% A- · D/E 0.18 B+ · P/E 14.4x A- · PEG 0.67 A-
Why now. HRMY’s thesis hinges on WAKIX’s expanding niche in narcolepsy, backed by a 20.7% YoY revenue lift, a 16.2% profit margin, and a $342m free‑cash‑flow that fuels a 14.4× P/E—an aggressive valuation for a company already delivering a 100‑point growth score in our model. The company’s 85.4/100 quality‑growth score, driven by a 100‑point growth pillar, shows that revenue expansion is already baked into the price, leaving room for the 0.67 PEG to play out as WAKIX gains market share. The single driver that keeps the thesis alive is the continued commercialization of WAKIX, which is poised to capture a larger share of the narcolepsy market as new competitors lag behind.
Moat. HRMY’s moat is its exclusive pitolisant platform, the only approved therapy for narcolepsy in the U.S., giving it a 20.7% revenue growth that is hard to replicate without the same FDA approval and manufacturing know‑how. The company’s 16% profit margin reflects pricing power in a rare‑disease market where patients and payers are willing to pay a premium for a unique solution, and the 0.18 debt‑to‑equity ratio keeps capital costs low, allowing reinvestment into clinical trials.
Risk. The bear case centers on the risk that WAKIX’s sales plateau if a generic entrant or a broader‑spectrum sleep aid emerges, which would erode the 16.2% margin and force a 14.4× P/E to compress. A 0.91 beta indicates sensitivity to market swings, and the 0.18 debt‑to‑equity ratio, while low, could tighten if the company needs to raise capital to fund its Phase 3 PWS trial, potentially diluting shareholders and pushing the price below the 45.5 consensus target. The bear case would be confirmed if quarterly sales miss the growth trajectory and the stock slides back toward its 52‑week low.
Horizon. 1-3 yr $45.50 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $66.62 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $98.82 if current growth sustains into durable earnings power.
10. ADMA — ADMA Biologics, Inc. · score 84.9
Biotechnology · price $8.74 · 1Y $17.00 · 5Y $24.89 · 10Y $36.92
FCF $108m C · Rev +11.0% B · D/E 1.11 C · P/E 12.9x A- · PEG 0.65 A-
Why now. ADMA’s IVIG portfolio—BIVIGAM and ASCENIV—serves a chronic, life‑long market that is hard to substitute, driving a 11% YoY revenue lift, a 32.4% profit margin, and a $108 m free‑cash‑flow that fuels share buybacks; our Bull Rankings model gives the Growth pillar a 90‑point score (its strongest pillar) and a Quality score of 81, confirming compounding momentum, making the current $8.74 price a bargain for a product line that will keep growing.
Moat. The company’s plasma‑derived biologics benefit from a highly specialized manufacturing process and a long‑standing supplier network that limits entry; BIVIGAM’s 20‑year FDA approval and ASCENIV’s established PI patient base create switching costs that competitors cannot replicate quickly, sustaining ADMA’s 42.4% ROE.
Risk. ADMA faces concentration risk in the primary immunodeficiency market and a debt‑to‑equity of 1.11, which could squeeze margins if payer reimbursement tightens; a P/E of 12.9 already prices in aggressive growth, so any slowdown would erode the valuation premium.
Horizon. 1-3 yr $17.00 (analyst consensus (n=5)) — fundamentals + valuation re-rating. 5 yr $24.89 at ~23% CAGR — compounding case rests on the competitive position widening. 10 yr $36.92 if current growth sustains into durable earnings power.
11. EXLS — ExlService Holdings, Inc. · score 83.5
Information Technology Services · price $34.24 · 1Y $44.38 · 5Y $64.97 · 10Y $96.38
FCF $297m C · Rev +13.4% B+ · D/E 0.57 C+ · P/E 21.7x B+ · PEG 1.01 B+
Why now. EXLS is poised to compound earnings by expanding its AI‑driven claims‑management and underwriting platforms across the booming insurance segment, where it already commands deep data integrations. The business is delivering 13.4% revenue growth YoY, 11.7% profit margin and a staggering 32.3% ROE, all while trading at a modest PEG of 1.01. The thesis rests on the relentless demand for digital operations in insurance, which should keep the growth engine humming for years to come.
Moat. The moat comes from entrenched AI analytics that lock insurers into EXLS’s end‑to‑end workflow—from claims intake to actuarial risk modeling—creating high switching costs and pricing power that fuels its 32.3% ROE. These data‑intensive services are hard to replicate quickly, giving EXLS a durable edge in the Insurance and Banking segments.
Risk. The bear case hinges on the market pricing a relatively high P/E of 21.7 despite a slowdown risk; if revenue growth eases below the current 13.4% or margins compress, the stock could tumble toward its 52‑week low of $24.85. A rising debt‑to‑equity ratio or any disruption to its AI platform would confirm the downside, snapping the compounding narrative.
Horizon. 1-3 yr $44.38 (analyst consensus (n=8)) — fundamentals + valuation re-rating. 5 yr $64.97 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $96.38 if current growth sustains into durable earnings power.
12. CARG — CarGurus, Inc. · score 82.7
Auto & Truck Dealerships · price $36.93 · 1Y $37.77 · 5Y $55.30 · 10Y $82.03
FCF $293m C · Rev +14.0% B+ · D/E 0.79 B+ · P/E 19.4x B · PEG 1.10 B+
Why now. The bull case hinges on CarGurus' Digital Deal platform, which lets shoppers start purchases online and drives higher conversion for dealer subscriptions. The business is scaling at a 14% YoY revenue growth rate, backed by a robust 15.9% profit margin and a healthy $293 m free‑cash‑flow generation, all while trading at a modest PE of 19.4x. This combination of growth and cash generation means the compounding engine—online marketplace plus Digital Deal—will keep accelerating earnings for years to come.
Moat. CarGurus' moat stems from its integrated dealer subscription model and the network effect of its large shopper audience, which creates switching costs for both dealers and buyers. The platform’s high ROE of 62.9% reflects pricing power derived from being the go‑to marketplace for a broad dealer base, making it difficult for new entrants to replicate the data depth and dealer relationships quickly.
Risk. The bear case focuses on the elevated valuation: a PE of 19.4x is high for a growth name, and the Bull Rankings model’s reverse DCF shows the current price implies ~0% annual free‑cash‑flow growth for the next decade—far below the 14% revenue growth rate, suggesting optimism is already baked in. A slowdown in dealer subscription renewals or a rise in debt‑to‑equity above the current 0.79 would trigger a re‑rating, confirming the downside risk.
Horizon. 1-3 yr $37.77 (analyst consensus (n=13)) — fundamentals + valuation re-rating. 5 yr $55.30 at ~8% CAGR — compounding case rests on the competitive position widening. 10 yr $82.03 if current growth sustains into durable earnings power.
13. RMD — ResMed Inc. · score 82.3
Medical Instruments & Supplies · price $215.19 · 1Y $248.60 · 5Y $363.98 · 10Y $539.93
FCF $1.8b C+ · Rev +10.3% B · D/E 0.13 B+ · P/E 20.7x B+ · PEG 1.26 B
Why now. ResMed’s dominance in the Sleep and Breathing Health segment, anchored by its cloud‑connected ApneaLink Air and NightOwl diagnostics, fuels a virtuous revenue loop – 10.3% YoY revenue growth, 27.4% profit margin and $1.8 B free cash flow – all while our Bull Rankings model awards a Quality score of 82.3, the highest pillar. The combination of a rising dividend and a 23.4% ROE means the business can keep compounding cash at a pace that outstrips peers, making the growth story self‑reinforcing.
Moat. The moat lives in ResMed’s integrated hardware‑software ecosystem: clinics and hospitals lock into the ApneaLink Air platform and the cloud‑based Residential Care Software, creating high switching costs and recurring data‑service revenue. This pricing power, reflected in a ROE above 20%, stems from being the de‑facto standard for home‑based sleep apnea diagnosis, a position rivals can’t replicate quickly.
Risk. The market is pricing in only ~2% annual free‑cash‑flow growth for the next decade, far below the actual 10.3% revenue expansion and a PE of 20.7, suggesting optimism may be overstretched; any slowdown in reimbursement rates or a successful generic challenger to the ApneaLink line would compress margins and could push the stock back toward its 52‑week low of $180.27. A breach of the 52‑week low would validate the bear case.
Horizon. 1-3 yr $248.60 (analyst consensus (n=15)) — fundamentals + valuation re-rating. 5 yr $363.98 at ~11% 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 82.2
Information Technology Services · price $107.26 · 1Y $135.24 · 5Y $198.00 · 10Y $293.72
FCF $544m C+ · Rev +14.2% B+ · D/E 0.08 B+ · P/E 15.4x A- · PEG 0.54 A-
Why now. EPAM is a deeply undervalued growth engine in the critical digital transformation sector, trading at a mere 1x P/S TTM despite delivering 14.2% FY YoY revenue growth. Our model's "Value" pillar, scoring 91/100, highlights this disconnect, further evidenced by a 0.54 PEG ratio and a reverse DCF implying an unrealistic 0% sustained free-cash-flow growth. The market is ignoring EPAM's robust free cash flow generation of $544m and our model's signal of active stock buybacks, which should compound shareholder value as demand for its digital platform engineering and AI services persists. The crux is the market's profound underappreciation of its growth and cash generation.
Moat. EPAM's durable edge stems from its deep integration into client operations through complex "digital platform engineering and software development services," including "requirements analysis, cross-platform migration, implementation, and integration." These services create high switching costs by embedding EPAM's expertise directly into core IT infrastructure. The specialized nature of its "cloud services," "data, analytics and artificial intelligence," and "cybersecurity" offerings requires highly skilled talent and long-term partnerships, making it difficult for competitors to quickly replicate or displace EPAM's established client relationships.
Risk. The primary risk for EPAM lies in the highly competitive "Information Technology Services" sector, where its "Quality" pillar scores a relatively weaker 72/100 in our model, suggesting potential vulnerabilities compared to peers. The stock's high 1.37 beta indicates significant sensitivity to broader economic downturns, which could lead to reduced discretionary spending on its "digital platform engineering" and "software development services," further pressuring its 7% profit margin. A sustained deceleration in its 14.2% revenue growth rate, or continued erosion of profit margins, would confirm that competitive pressures or a macro slowdown are materially impacting EPAM's ability to execute.
Horizon. 1-3 yr $135.24 (analyst consensus (n=17)) — fundamentals + valuation re-rating. 5 yr $198.00 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $293.72 if current growth sustains into durable earnings power.
15. META — Meta Platforms, Inc. · score 82
Internet Content & Information · price $590.24 · 1Y $768.58 · 5Y $970.32 · 10Y $1,244
FCF $48.3b A · Rev +26.2% A- · D/E 0.43 B+ · P/E 22.2x B · PEG 0.83 B+
Why now. Internet Content & Information · market cap $1.5T. Down 26% from 52-week high of $796.25 — deep drawdown territory. Revenue growing +26% — in hypergrowth territory. PEG 0.83 — paying under fair value for the growth rate. 57 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $768.58 (implying +30% 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 $768.58 (analyst consensus (n=57)) — multiple re-rating thesis requires a catalyst. 5 yr $970.32 at ~10% CAGR — dividend + buyback compounding. 10 yr $1,244 if the moat survives secular pressure.
16. IT — Gartner, Inc. · score 81.8
Information Technology Services · price $151.53 · 1Y $160.38 · 5Y $202.48 · 10Y $259.68
FCF $1.3b C+ · Rev +2.3% C · D/E n/a · P/E 15.0x A- · PEG 0.66 A-
Why now. Information Technology Services · market cap $10.1b. Down 55% from 52-week high of $337.29 — deep drawdown territory. PEG 0.66 — 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 +6% 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 55% 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 ~6% CAGR — dividend + buyback compounding. 10 yr $259.68 if the moat survives secular pressure.
17. VEEV — Veeva Systems Inc. · score 81.5
Health Information Services · price $206.25 · 1Y $244.14 · 5Y $357.45 · 10Y $530.25
FCF $1.7b C+ · Rev +16.2% B+ · D/E 0.01 A- · P/E 36.6x C+ · PEG 0.92 B+
Why now. Health Information Services · market cap $33.5b. Down 34% from 52-week high of $310.50 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. PEG 0.92 — 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 +18% 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 34% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trailing P/E 37x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. P/S 10.1x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
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. APP — AppLovin Corporation · score 79.8
Advertising Agencies · price $406.16 · 1Y $654.60 · 5Y $958.40 · 10Y $1,422
FCF $4.4b B · Rev +66.4% A · D/E 1.63 C · P/E 35.4x C+ · PEG 1.09 B+
Why now. Advertising Agencies · market cap $136.4b. Down 46% 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 +61% 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. $136.4b 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. Down 46% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 2.53 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 35x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $654.60 (analyst consensus (n=30)) — fundamentals + valuation re-rating. 5 yr $958.40 at ~19% CAGR — compounding case rests on the competitive position widening. 10 yr $1,422 if current growth sustains into durable earnings power.
19. DECK — Deckers Outdoor Corporation · score 79.7
Footwear & Accessories · price $99.50 · 1Y $122.81 · 5Y $155.04 · 10Y $198.84
FCF $1.1b C+ · Rev +7.9% B · D/E 0.21 A- · P/E 14.2x A- · PEG 1.19 B+
Why now. Footwear & Accessories · market cap $13.6b. Down 21% 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 +23% upside).
Moat. Net margin 18% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 44% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 110% 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 ~9% CAGR — dividend + buyback compounding. 10 yr $198.84 if the moat survives secular pressure.
20. DXCM — DexCom, Inc. · score 79.5
Medical Devices · price $87.31 · 1Y $92.80 · 5Y $135.87 · 10Y $201.55
FCF $1.4b C+ · Rev +15.5% B+ · D/E 0.53 B · P/E 34.5x C+ · PEG 1.56 C+
Why now. Medical Devices · market cap $32.9b. Trading near 52-week high of $87.63 — momentum setup, limited technical margin of safety. 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 $92.80 (implying +6% upside).
Moat. Net margin 20% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 38% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 141% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Trading within 0% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Beta 1.41 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 35x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $92.80 (analyst consensus (n=25)) — fundamentals + valuation re-rating. 5 yr $135.87 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $201.55 if current growth sustains into durable earnings power.
21. MELI — MercadoLibre, Inc. · score 79.2
Internet Retail · price $1898.79 · 1Y $2,215 · 5Y $3,243 · 10Y $4,810
FCF $11.8b A- · Rev +36.4% A · D/E 1.70 C+ · P/E 50.1x D · PEG 1.16 B+
Why now. Internet Retail · market cap $96.3b. Down 25% 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 +17% 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. $96.3b 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 50.1x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. 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 ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $4,810 if current growth sustains into durable earnings power.
22. MU — Micron Technology, Inc. · score 78.9
Semiconductors · price $829.50 · 1Y $1,522 · 5Y $1,922 · 10Y $2,465
FCF $26.2b A · Rev +167.0% A · D/E 0.06 A- · P/E 18.7x A- · PEG 0.12 A
Why now. Semiconductors · market cap $936.8b. Down 34% from 52-week high of $1255.00 — deep drawdown territory. Revenue growing +167% — in hypergrowth territory. PEG 0.12 — paying under fair value for the growth rate. 42 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $1,522 (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. $936.8b 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 34% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 2.21 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 10.4x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon. 1-3 yr $1,522 (analyst consensus (n=42)) — multiple re-rating thesis requires a catalyst. 5 yr $1,922 at ~18% CAGR — dividend + buyback compounding. 10 yr $2,465 if the moat survives secular pressure.
23. PODD — Insulet Corporation · score 78.9
Medical Devices · price $169.70 · 1Y $235.54 · 5Y $344.86 · 10Y $511.57
FCF $416m C · Rev +31.9% A · D/E 0.78 C+ · P/E 39.6x C+ · PEG 1.46 B
Why now. Medical Devices · market cap $11.8b. Down 52% from 52-week high of $354.88 — deep drawdown territory. Revenue growing +32% — in hypergrowth territory. 24 sell-side analysts rate this a Buy with a mean 1-yr target of $235.54 (implying +39% 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 52% 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 40x 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 ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $511.57 if current growth sustains into durable earnings power.
24. VRT — Vertiv Holdings Co · score 78
Electrical Equipment & Parts · price $263.05 · 1Y $339.35 · 5Y $496.84 · 10Y $737.02
FCF $2.9b B · Rev +26.2% A- · D/E 0.70 B · P/E 59.5x D · PEG 1.14 B+
Why now. Electrical Equipment & Parts · market cap $101.3b. Down 31% from 52-week high of $379.94 — deep drawdown territory. Revenue growing +26% — in hypergrowth territory. 26 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $339.35 (implying +29% upside).
Moat. Net margin 15% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 36% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 169% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Trailing P/E 59.5x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Down 31% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 2.08 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 $339.35 (analyst consensus (n=26)) — fundamentals + valuation re-rating. 5 yr $496.84 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $737.02 if current growth sustains into durable earnings power.
25. FIVE — Five Below, Inc. · score 77.7
Specialty Retail · price $216.70 · 1Y $260.48 · 5Y $328.85 · 10Y $421.74
FCF $505m C+ · Rev +25.9% A- · D/E 0.86 B · P/E 27.3x C+ · PEG 0.98 B+
Why now. Specialty Retail · market cap $12.0b. 14% 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 +20% 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 ~9% CAGR — dividend + buyback compounding. 10 yr $421.74 if the moat survives secular pressure.
26. EME — EMCOR Group, Inc. · score 75.5
Engineering & Construction · price $817.42 · 1Y $1,044 · 5Y $1,318 · 10Y $1,691
FCF $1.2b C+ · Rev +18.9% B+ · D/E 0.13 A- · P/E 25.4x B · PEG 0.42 A
Why now. Engineering & Construction · market cap $36.1b. 14% off the 52-week high of $951.96. Revenue growing +19%, comfortably above the S&P median. PEG 0.42 — paying under fair value for the growth rate. 7 sell-side analysts rate this a Buy with a mean 1-yr target of $1,044 (implying +28% 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 $1,044 (analyst consensus (n=7)) — multiple re-rating thesis requires a catalyst. 5 yr $1,318 at ~10% CAGR — dividend + buyback compounding. 10 yr $1,691 if the moat survives secular pressure.
27. CCK — Crown Holdings, Inc. · score 75.4
Packaging & Containers · price $119.87 · 1Y $136.57 · 5Y $172.42 · 10Y $221.12
FCF $1.2b C+ · Rev +10.3% B · D/E 1.86 C+ · P/E 17.2x B+ · PEG 0.64 A-
Why now. Packaging & Containers · market cap $13.0b. Trading near 52-week high of $121.90 — momentum setup, limited technical margin of safety. Revenue growing +10%, comfortably above the S&P median. PEG 0.64 — paying under fair value for the growth rate. 14 sell-side analysts rate this a Buy with a mean 1-yr target of $136.57 (implying +14% upside).
Moat. ROE 27% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 153% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Trading within 2% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction.
Horizon. 1-3 yr $136.57 (analyst consensus (n=14)) — multiple re-rating thesis requires a catalyst. 5 yr $172.42 at ~8% CAGR — dividend + buyback compounding. 10 yr $221.12 if the moat survives secular pressure.
28. FISV — Fiserv, Inc. · score 75.2
Sector n/a · price $54.35 · 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 2.56 C
Why now. Sector n/a · market cap $29.0b. Down 61% from 52-week high of $140.42 — 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 61% 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. TMUS — T-Mobile US, Inc. · score 73.8
Telecom Services · price $177.09 · 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 0.80 A-
Why now. Telecom Services · market cap $190.0b. Down 32% from 52-week high of $261.56 — deep drawdown territory. PEG 0.80 — 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. $190.0b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. 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.
30. ONON — On Holding AG · score 73.2
Footwear & Accessories · price $37.95 · 1Y $52.31 · 5Y $76.59 · 10Y $113.62
FCF $389m C · Rev +30.0% A · D/E 0.31 A- · P/E 41.3x C · PEG 0.71 A-
Why now. Footwear & Accessories · market cap $12.6b. Down 27% from 52-week high of $52.20 — deep drawdown territory. Revenue growing +30% — in hypergrowth territory. PEG 0.71 — paying under fair value for the growth rate. 27 sell-side analysts rate this a Buy with a mean 1-yr target of $52.31 (implying +38% upside).
Moat. ROE 12% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 126% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Beta 2.12 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 41x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $52.31 (analyst consensus (n=27)) — fundamentals + valuation re-rating. 5 yr $76.59 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $113.62 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.