This refresh
Data-driven refresh August 5, 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 (5,226 tickers); 1,789 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 $21.89 · 1Y $24.61 · 5Y $36.03 · 10Y $53.45
FCF $326m C · Rev +13.1% B+ · D/E 0.01 A · P/E 22.3x B+ · PEG 0.59 A-
Why now. DOCS’s AI‑driven workflow tool Ask is turning the platform into a clinical‑decision engine, locking physicians into a daily habit that fuels revenue compounding. The business is delivering 13.1% YoY revenue growth, 30.4% profit margin and a PEG of 0.59, all while trading at a modest PE of 22.3x—a clear sign the market undervalues its growth engine. The thesis rests on the persistence of physician‑centric network effects that keep Ask expanding its usage and ad spend, compounding earnings year after year.
Moat. Doximity’s moat is its entrenched physician network and the HIPAA‑compliant AI assistant Ask, which embeds directly into clinicians’ workflows. With over 80% of U.S. doctors on the platform, switching costs are high because physicians rely on personalized newsfeeds, peer updates, and AI‑assisted evidence retrieval that competitors cannot replicate quickly. This lock‑in drives pricing power, reflected in a ROE of 20.6%.
Risk. The market is pricing in aggressive growth: a reverse‑DCF shows the current price implies only ~2% annual free‑cash‑flow growth for the next decade, far below the 13.1% revenue growth pace, suggesting the stock is over‑optimistic. A PE of 22.3x for a growth name and a beta of 1.21 amplify downside if growth stalls or margins compress. A breach of the 52‑week low ($17.15) would confirm the valuation is stretched and trigger a sell‑off.
Horizon. 1-3 yr $24.61 (analyst consensus (n=18)) — fundamentals + valuation re-rating. 5 yr $36.03 at ~10% 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
Software - Application · price $257.49 · 1Y $269.61 · 5Y $394.73 · 10Y $585.56
FCF $10.3b A- · Rev +11.5% B · D/E 0.61 C+ · P/E 14.7x A- · PEG 0.68 A-
Why now. Adobe’s unmatched Creative Cloud suite fuels a relentless subscription engine, delivering $10.3B of free cash flow on a $102.4B market cap while revenue climbs 11.5% YoY. Our model’s strongest pillar – Quality at 92 – reflects the platform’s lock‑in for photographers, video editors and marketers, and the reverse‑DCF shows today’s price already assumes 0% FCF growth, far below the actual top‑line momentum, making the stock undervalued relative to its growth trajectory. The thesis rests on the subscription‑driven cash engine continuing to compound.
Moat. The Digital Media segment’s Creative Cloud locks enterprise and creator teams into multi‑year contracts, creating high switching costs and a data‑rich ecosystem that competitors can’t replicate quickly. Adobe’s ROE of 62.8% stems from pricing power in a category‑lead position, turning each dollar of revenue into outsized earnings.
Risk. A 1.4 beta and a growth pillar of only 87 signal that any slowdown in the 11.5% revenue growth or a shift to lower‑margin on‑premise licensing could crush margins; the debt‑to‑equity of 0.61 adds leverage risk if cash flow falters. A bear‑case confirmation would be a miss on the next quarterly revenue growth, pushing the P/E above the sector norm and triggering sell‑offs.
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 88.6
Software - Infrastructure · price $15.30 · 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 is the infrastructure backbone for cross-border commerce in high-growth markets, and its pay-in solution for hundreds of alternative payment methods (APMs) is the single biggest lever for its +46.6% revenue growth and 34.6% ROE. Merchants in streaming, ride-hailing, and SaaS are flocking to dLocal for Platforms to handle global platform payments because it eliminates the complexity of local-to-local transactions, and the $413M TTM free cash flow proves the unit economics scale. The crux: this growth is not a one-quarter spike but a structural shift as emerging-market digital spend accelerates.
Moat. DLocal’s moat is built on a proprietary network of local payment rails and direct integrations with regional banks, which competitors can’t replicate quickly because each market requires bespoke compliance, licensing, and settlement agreements. The 18% profit margin isn’t just pricing power—it’s the result of routing transactions through the lowest-cost local networks while charging premium take rates for cross-border simplicity. The 0.2 debt-to-equity ratio shows capital-light scaling, and with a beta of 0.87, the business thrives in volatile markets where incumbents like Stripe or Adyen stumble on local compliance.
Risk. The bear case hinges on valuation: our model’s reverse DCF implies -7% annual free-cash-flow growth for 10 years, which assumes the $4.5B market cap compounds at a rate that outstrips the 46.6% revenue growth—a stretch unless APM adoption accelerates even faster than expected. Competitive pressure from regional players could erode take rates, and if growth decelerates below 30%, the PEG ratio of 0.51 would invert to a value trap. The signal to confirm the bear case: a quarter where revenue growth falls below 35% without a corresponding margin expansion.
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 $21.92 · 1Y $28.50 · 5Y $41.73 · 10Y $61.90
FCF $252m C · Rev +25.6% A- · D/E 1.34 C · P/E 15.5x A- · PEG 0.05 A
Why now. Our Bull Rankings model gives Pagaya a 88.5/100 quality‑growth score, with Growth at 100 (its strongest pillar) and Quality at 70 (its weakest pillar) – the highest driver is a 25.6% YoY revenue growth powered by its flagship Decline Monetization platform, which automatically routes rejected loan applications to its network. Combined with a healthy free‑cash‑flow of $252 m and a modest P/E of 15.5, the company is poised to compound earnings at a rapid pace, making the current $21.92 price a bargain for a high‑growth, data‑driven fintech.
Moat. Pagaya’s Decline Monetization product creates a network effect: partners automatically feed rejected loan data into the system, generating a proprietary dataset that rivals cannot replicate without access to the same loan pipeline. This data moat, coupled with the company’s 19.5% ROE driven by pricing power in the institutional underwriting niche, locks in a high‑margin, low‑switching‑cost customer base.
Risk. The biggest threat is the high beta of 5.37 and a debt‑to‑equity of 1.34, which expose Pagaya to market volatility and leverage risk. If the 25.6% revenue growth stalls or the P/E climbs above 20, the valuation would compress sharply, eroding the upside that the Bull Rankings model currently projects.
Horizon. 1-3 yr $28.50 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $41.73 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $61.90 if current growth sustains into durable earnings power.
5. INTU — Intuit Inc. · score 87.7
Software - Application · price $323.60 · 1Y $454.65 · 5Y $665.66 · 10Y $987.46
FCF $7.8b B+ · Rev +15.1% B+ · D/E 0.33 B · P/E 19.7x A- · PEG 0.82 B+
Why now. The bull case hinges on QuickBooks Online’s lock‑in of U.S. SMBs, where its integrated payroll, payments and financing ecosystem drives relentless subscription expansion. INTU delivers 15.1% YoY revenue growth, a 21.9% profit margin and $7.8B of free cash flow, all on a modest PE of 19.7x, giving the business ample runway to compound earnings. The thesis rests on the fact that this high‑quality growth engine can keep compounding at double‑digit rates for years to come.
Moat. INTU’s moat stems from the seamless, end‑to‑end workflow of QuickBooks and its ancillary services—payroll, merchant processing and financing—that create high switching costs for SMBs. The platform’s data‑driven insights and integrated billing lock customers into a single ecosystem, while the 22.2% ROE reflects pricing power derived from category leadership in small‑business financial management.
Risk. The bear case focuses on the risk that enterprise‑grade rivals like Microsoft and SAP could erode QuickBooks’ market share, especially as the SMB segment matures and growth slows; the current PE of 19.7x is elevated for a mature SaaS business, and any deceleration from the 15.1% revenue growth rate would pressure multiples. A sustained drop in margin or a rise in debt‑to‑equity above 0.33 would confirm the downside and invalidate the growth narrative.
Horizon. 1-3 yr $454.65 (analyst consensus (n=33)) — fundamentals + valuation re-rating. 5 yr $665.66 at ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $987.46 if current growth sustains into durable earnings power.
6. LRN — Stride, Inc. · score 87.2
Education & Training Services · price $80.45 · 1Y $92.52 · 5Y $135.45 · 10Y $200.94
FCF $414m C · Rev +10.9% B · D/E 0.33 A- · P/E 12.6x A- · PEG 0.45 A
Why now. Our Bull Rankings model gives LRN a 87.2/100 quality‑growth score, with Value at 94 and Growth at 89, showing the company is already priced for growth but still has upside. The thesis hinges on Stride’s integrated virtual‑school platform, which is driving a 10.9% YoY revenue growth and a $414 M free‑cash‑flow that supports a 12.6× P/E and a 12.2% profit margin. The real revenue growth of 10.9% gives the stock room to compound further, making the 10‑year target a realistic upside.
Moat. Stride’s moat is its end‑to‑end virtual‑school stack—curriculum, software, and support services—that locks in public‑school districts and individual learners. The platform’s integration reduces switching costs for schools, while the proprietary curriculum keeps content unique. This combination drives a 18.8% ROE, evidence of pricing power from its category leadership in virtual‑school solutions.
Risk. The bear case centers on the thin 12.2% profit margin and a P/E of 12.6, which is high for a growth name that still has only a 0.33 debt‑to‑equity ratio. If the 10.9% revenue growth stalls or competitors launch cheaper, fully‑integrated platforms, margin compression could hit the 12.2% target, eroding the 10‑year upside. A sharp decline in margin would confirm the bear thesis and break the bull case.
Horizon. 1-3 yr $92.52 (structural (no analyst coverage)) — fundamentals + valuation re-rating. 5 yr $135.45 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $200.94 if current growth sustains into durable earnings power.
7. NBIX — Neurocrine Biosciences, Inc. · score 87.1
Drug Manufacturers - Specialty & Generic · price $166.06 · 1Y $211.94 · 5Y $310.30 · 10Y $460.32
FCF $870m C+ · Rev +34.4% A · D/E 0.12 B+ · P/E 24.2x B · PEG 0.47 A
Why now. NBIX’s upside hinges on its market‑leading oral therapy INGREZZA, the only FDA‑approved drug for tardive dyskinesia, which is fueling a 34.4% YoY revenue surge and expanding the neurology franchise. The business converts that top‑line momentum into a 20.9% profit margin and generates $870 m of free cash flow, giving management ample runway for reinvestment and shareholder returns. With a PEG of 0.47, the stock is priced for modest growth, but the real catalyst is the compounding power of its niche, high‑margin products that can keep revenue expanding at double‑digit rates.
Moat. NBIX’s moat rests on its exclusive FDA‑approved portfolio—INGREZZA for tardive dyskinesia, Orilissa for endometriosis, and Oriahnn for uterine fibroids—creating high switching costs for patients and physicians who rely on proven efficacy. The company’s 19.1% ROE reflects pricing power and premium reimbursement in these orphan‑type indications, a barrier that generic competitors cannot quickly breach without costly clinical trials.
Risk. The bull case assumes continued double‑digit growth, yet the stock trades at a forward P/E of 24.2, implying the market already prices in aggressive expansion; any slowdown in revenue growth or a failed late‑stage trial would expose the valuation gap. Additionally, the Bull Rankings model flags “diluting shareholders,” and a modest debt‑to‑equity of 0.12 could mask equity dilution risk that would erode earnings per share. A miss on upcoming FDA decisions or competitive entry into the movement‑disorder space would trigger a sharp re‑rating.
Horizon. 1-3 yr $211.94 (analyst consensus (n=27)) — fundamentals + valuation re-rating. 5 yr $310.30 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $460.32 if current growth sustains into durable earnings power.
8. NVDA — NVIDIA Corporation · score 86.3
Semiconductors · price $211.94 · 1Y $302.83 · 5Y $443.37 · 10Y $657.71
FCF $119.1b A · Rev +70.7% A · D/E 0.07 B+ · P/E 32.5x B · PEG 0.55 A-
Why now. NVIDIA’s Compute & Networking AI infrastructure dominates the data‑center acceleration market, driving a staggering 70.7% YoY revenue growth while delivering a 63% profit margin and an eye‑popping 81.7% ROE. Our Bull Rankings model rates the stock 86.3/100 on Quality‑Growth, with Growth as the strongest pillar, underscoring the compounding power of its AI platform; the reverse‑DCF implies a required 49% FCF growth over ten years, well below the current growth trajectory, meaning the market already under‑prices the upside. The thesis rests on continued AI‑driven data‑center demand that will keep compounding earnings at break‑neck speed.
Moat. The Compute & Networking segment locks in hyperscale cloud providers and enterprise AI customers on NVIDIA’s proprietary GPU and networking stack, creating massive switching costs and a virtuous pricing loop that fuels the 81.7% ROE. Its IP‑rich architecture and software ecosystem lock customers into a single‑vendor solution that rivals cannot replicate quickly, preserving margin strength across gaming, professional visualization, and automotive workloads.
Risk. A 2.21 beta and a forward P/E of 32.5 signal that any slowdown in AI spend or a pricing war from emerging GPU rivals could compress margins and erode the 63% profit margin, while the market’s optimism is already baked into the $302.83 consensus target; a breach of the 52‑week low at $164.07 would confirm that valuation pressure and growth deceleration are outweighing the moat. The bear case materialises if revenue growth falls below the historic 70.7% pace, forcing the implied 49% FCF growth to become unrealistic.
Horizon. 1-3 yr $302.83 (analyst consensus (n=58)) — fundamentals + valuation re-rating. 5 yr $443.37 at ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $657.71 if current growth sustains into durable earnings power.
9. GDDY — GoDaddy Inc. · score 85.3
Software - Infrastructure · price $89.09 · 1Y $104.80 · 5Y $153.44 · 10Y $227.61
FCF $1.7b C+ · Rev +7.4% B · D/E n/a · P/E 13.2x A · PEG 0.68 A-
Why now. GoDaddy’s core strength lies in its Websites + Marketing product, which powers a growing base of small‑to‑mid‑size merchants that need quick, mobile‑optimized storefronts. The company is delivering +7.4% YoY revenue growth while maintaining a solid 17.8% profit margin and a $1.7 B free‑cash‑flow stream that fuels aggressive share buybacks. With a PE of 13.2 and a PEG of 0.68, the market is already pricing in a modest growth premium, but the quality‑growth score of 85.3—anchored by a quality pillar of 95—shows that the business is a high‑quality compounder that can sustain this momentum for years. The crux: the scalable, subscription‑based platform that keeps merchants locked into GoDaddy’s ecosystem is a durable, high‑margin engine that will continue to grow as e‑commerce expands.
Moat. The moat is built on the Managed WordPress and GoDaddy Studio suites, which create a sticky, integrated workflow for website owners. These products bundle hosting, design, and marketing tools into a single, low‑switching cost platform, giving GoDaddy a network effect where each new customer adds value to the ecosystem. The result is a high‑barrier entry for competitors that would need to replicate the full stack and customer support network to compete effectively.
Risk. The biggest risk is a P/E of 13.2 that already reflects a reverse‑DCF implied free‑cash‑flow growth of –17%/yr over ten years—far below the current +7.4% revenue growth. If the company cannot lift its margin or accelerate revenue beyond the current pace, the valuation will collapse. A sharp decline in the demand for small‑business web services—perhaps due to a macro‑economic slowdown—could erode the customer base and hit the recurring revenue model.
Horizon. 1-3 yr $104.80 (analyst consensus (n=15)) — fundamentals + valuation re-rating. 5 yr $153.44 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $227.61 if current growth sustains into durable earnings power.
10. TTD — The Trade Desk, Inc. · score 85.3
Advertising Agencies · price $19.34 · 1Y $24.32 · 5Y $35.61 · 10Y $52.82
FCF $842m C+ · Rev +15.5% B+ · D/E 0.17 A- · P/E 22.0x B · PEG 0.86 B+
Why now. The Trade Desk’s unrivaled programmatic platform for Connected TV (CTV) and video is still expanding, and its 15.5% FY YoY revenue growth together with a 14.6% profit margin and a sub‑1.0 PEG of 0.86 give it a clear compounding engine that will keep cash flowing into the $842 m free‑cash‑flow pool. The bull case hinges on the continued migration of ad dollars to CTV, a segment where The Trade Desk’s technology and data services are the de‑facto standard for agencies and advertisers, ensuring the growth runway stays intact.
Moat. The Trade Desk locks in agencies and advertisers with its proprietary, cross‑device buying stack that integrates data, inventory, and optimization in a single UI, creating high switching costs and a network effect—every new CTV inventory added only strengthens the platform’s reach. Its 17.6% ROE stems from pricing power derived from being the preferred DSP for premium video, a position competitors can’t replicate quickly because of the deep data partnerships and the scale of its real‑time bidding infrastructure.
Risk. The bears warn that a 22‑times P/E for a 14.6% margin is pricey, and the implied -4% free‑cash‑flow growth from the reverse‑DCF suggests the market already baked in optimism that outpaces the realistic 15.5% revenue pace; a slowdown in CTV spend or a pricing squeeze would compress margins and push the P/E even higher. The key signal would be a quarterly revenue growth dip below 10% coupled with margin erosion, which would validate the overvaluation thesis and trigger a sell‑off.
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.
11. ADMA — ADMA Biologics, Inc. · score 84.6
Biotechnology · price $8.91 · 1Y $17.00 · 5Y $24.89 · 10Y $36.92
FCF $108m C · Rev +11.0% B · D/E 1.11 C · P/E 13.1x A- · PEG 0.67 A-
Why now. ADMA’s IVIG portfolio—BIVIGAM and ASCENIV—feeds a stable, high‑margin immune‑deficiency market that is still expanding, driving an 8% YoY revenue lift and a 33% profit margin; the company’s free‑cash‑flow of $116 m underpins a 13.6× P/E that is already priced for a 4%/yr FCF growth, yet our model flags a 90‑point Growth score, showing the business is a high‑quality compounder.
Moat. The IVIG products are delivered through ADMA BioManufacturing’s proprietary plasma‑collection network, giving the firm a 4‑week supply lead that competitors cannot replicate; this creates a high switching cost for specialty‑immune‑deficiency patients and locks in a 41.4% ROE driven by pricing power in a niche, regulated market.
Risk. ADMA’s debt‑to‑equity of 1.11 and a beta of 0.77 expose it to refinancing risk if interest rates climb; the 13.6× P/E is above the sector median, so a modest earnings slowdown or a 5% drop in IVIG demand could erode margins and trigger a sell‑off.
Horizon. 1-3 yr $17.00 (analyst consensus (n=5)) — fundamentals + valuation re-rating. 5 yr $24.89 at ~22% CAGR — compounding case rests on the competitive position widening. 10 yr $36.92 if current growth sustains into durable earnings power.
12. ANIP — ANI Pharmaceuticals, Inc. · score 83.9
Drug Manufacturers - Specialty & Generic · price $79.20 · 1Y $110.00 · 5Y $161.05 · 10Y $238.91
FCF $191m C · Rev +37.0% A · D/E 1.12 C · P/E 20.3x B+ · PEG 0.46 A
Why now. ANI’s injectable franchise, anchored by its Cortrophin gel and ILUVIEN eye‑drop platforms, is scaling at a 37% FY revenue growth rate while delivering a 9.9% profit margin and a free‑cash‑flow generation of $191 m. The combination of a sub‑$80 entry, a low‑beta profile (0.46) and a PEG of 0.47 means the market is already pricing in rapid expansion, but the 10‑year reverse‑DCF shows the price assumes a sustained –8% FCF growth, far below the current top‑line momentum, leaving upside for the compounding engine. The thesis rests on the continued roll‑out of its specialty injectables to specialty pharmacies and hospital networks, which should keep the growth curve alive.
Moat. ANI’s moat stems from its integrated manufacturing of complex injectables and soft‑gel capsules, giving it control over a high‑margin, regulated supply chain that few generic peers can replicate quickly. Its contracts with national wholesalers, specialty pharmacies and GPOs lock in volume and create switching costs for hospitals that rely on consistent, FDA‑approved sterile products. The 16.3% ROE reflects pricing power in niche therapeutic areas where ANI enjoys limited competition.
Risk. The bear case focuses on the company’s leverage; a debt‑to‑equity of 1.12 signals a balance‑sheet that could strain cash flow if interest rates rise or if the high‑growth trajectory stalls. The P/E of 20.4, while modest, is still above many generic peers and leaves little margin for error if revenue growth decelerates from the current 37% pace. A breach of the 52‑week low ($64.99) would confirm that the market is re‑pricing the risk of margin compression and debt servicing.
Horizon. 1-3 yr $110.00 (analyst consensus (n=8)) — fundamentals + valuation re-rating. 5 yr $161.05 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $238.91 if current growth sustains into durable earnings power.
13. EXLS — ExlService Holdings, Inc. · score 83.6
Information Technology Services · price $34.39 · 1Y $44.38 · 5Y $64.97 · 10Y $96.38
FCF $297m C · Rev +13.4% B+ · D/E 0.57 C+ · P/E 21.8x B+ · PEG 1.01 B+
Why now. EXLS is a high‑growth AI‑enabled claims‑management engine that is rapidly scaling its Insurance segment, delivering 13.4% YoY revenue growth while converting that into a 11.7% profit margin and a stellar ROE of 32.3%. Our Bull Rankings model gives it an 83.6/100 quality‑growth score, with Growth as the strongest pillar, confirming that the business’s compounding engine—AI‑driven analytics and digital operations—will keep accelerating earnings. The market is already pricing in a modest 3% FCF growth (reverse DCF), far below the 13% top‑line pace, leaving ample upside for the stock.
Moat. The moat resides in EXLS’s deep integration of AI into claims processing and policy servicing for large insurers, creating high switching costs because clients rely on its proprietary analytics platform for actuarial risk and underwriting support. This lock‑in fuels the 32.3% ROE, as the firm can command premium pricing on its data‑rich solutions that competitors cannot replicate quickly without comparable AI infrastructure.
Risk. The bear case hinges on the elevated valuation—PE of 21.3 versus a modest 3% implied FCF growth—meaning any slowdown in the 13.4% revenue expansion or margin compression would trigger a sharp re‑rating. A debt‑to‑equity of 0.57 adds leverage risk if the AI spend curve flattens, and a beta of 0.8, while low, still exposes the stock to broader tech‑service cycle downturns. A miss on the next earnings beat would confirm the over‑optimism and drive the price back toward its 52‑week low.
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.
14. CARG — CarGurus, Inc. · score 83
Auto & Truck Dealerships · price $37.02 · 1Y $37.77 · 5Y $55.30 · 10Y $82.03
FCF $293m C · Rev +14.0% B+ · D/E 0.79 B+ · P/E 19.5x B · PEG 1.10 B+
Why now. CarGurus’ Digital Deal platform is turning its massive shopper‑dealer network into a high‑margin, recurring‑revenue engine, driving 14% YoY revenue growth and a 15.9% profit margin. The Bull Rankings model awards the business a Quality score of 87 – the strongest pillar – reflecting its superior execution and cash generation, underscored by $293 m of free cash flow. With a PEG of 1.12 and a consensus 1‑yr target of $37.77, the thesis rests on the continued compounding of Digital Deal‑enabled transactions.
Moat. The moat lives in CarGurus’ integrated marketplace that locks dealers into subscription fees and advertising spend while giving shoppers a single point of entry, creating a two‑sided network effect. This scale fuels a ROE of 62.9%, a direct result of pricing power over dealers who rely on CarGurus’ traffic to fill inventory, a lever competitors can’t replicate quickly.
Risk. The stock trades at a forward P/E of 19.2, implying investors already price in zero‑growth free cash flow over the next decade – a stark mismatch to the 14% revenue expansion, suggesting optimism may be overstated. A beta of 1.17 and a debt‑to‑equity of 0.79 add volatility, and any slowdown in Digital Deal adoption would force the valuation lower. A breach of the implied 0% FCF growth assumption would confirm the bear case.
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.
15. RMD — ResMed Inc. · score 82.4
Medical Instruments & Supplies · price $223.14 · 1Y $248.53 · 5Y $363.88 · 10Y $539.79
FCF $1.8b C+ · Rev +10.3% B · D/E 0.13 B+ · P/E 21.5x B+ · PEG 1.26 B
Why now. ResMed’s dominance in cloud‑connected sleep diagnostics – epitomized by the ApneaLink Air and NightOwl platforms – fuels a compounding engine anchored by 10.3% revenue growth, a razor‑thin 27.4% profit margin that translates into $1.8B free cash flow and a sturdy 23.4% ROE. Our Bull Rankings model rates the company 82.4/100 on quality‑growth, with Quality as the strongest pillar, confirming the durability of its margin‑rich franchise. The thesis rests on the relentless expansion of home‑based sleep testing, which should keep earnings compounding well above the modest 3% reverse‑DCF implied growth.
Moat. ResMed’s moat lies in its integrated hardware‑software ecosystem for sleep apnea, where devices like ApneaLink Air feed data into a proprietary cloud platform that clinicians rely on for diagnosis and titration. This creates high switching costs for hospitals and home‑care providers, while the 23.4% ROE reflects pricing power derived from category leadership in both clinical and consumer‑grade respiratory health solutions.
Risk. The bear case centers on the elevated PE of 21.5x, which assumes sustained double‑digit growth; any slowdown below the current 10.3% revenue pace would compress multiples. A modest debt‑to‑equity of 0.13 offers little cushion if capital‑intensive R&D or regulatory setbacks force higher spend, and a beta of 0.75 still leaves the stock vulnerable to broader market corrections. A miss on growth expectations would trigger a re‑rating and push the price toward the 52‑week low of $180.27.
Horizon. 1-3 yr $248.53 (analyst consensus (n=15)) — fundamentals + valuation re-rating. 5 yr $363.88 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $539.79 if current growth sustains into durable earnings power.
16. EPAM — EPAM Systems, Inc. · score 82.1
Information Technology Services · price $112.06 · 1Y $133.94 · 5Y $169.10 · 10Y $216.86
FCF $544m C+ · Rev +14.2% B+ · D/E 0.08 B+ · P/E 16.1x A- · PEG 0.54 A-
Why now. Information Technology Services · market cap $5.9b. Down 50% from 52-week high of $222.53 — deep drawdown territory. Revenue growing +14%, comfortably above the S&P median. PEG 0.54 — paying under fair value for the growth rate. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $133.94 (implying +20% 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 50% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon. 1-3 yr $133.94 (analyst consensus (n=17)) — multiple re-rating thesis requires a catalyst. 5 yr $169.10 at ~9% CAGR — dividend + buyback compounding. 10 yr $216.86 if the moat survives secular pressure.
17. META — Meta Platforms, Inc. · score 82.1
Internet Content & Information · price $587.94 · 1Y $759.41 · 5Y $958.73 · 10Y $1,230
FCF $48.3b A · Rev +26.2% A- · D/E 0.43 B+ · P/E 22.1x 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 $759.41 (implying +29% 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 $759.41 (analyst consensus (n=57)) — multiple re-rating thesis requires a catalyst. 5 yr $958.73 at ~10% CAGR — dividend + buyback compounding. 10 yr $1,230 if the moat survives secular pressure.
18. CPAY — Corpay, Inc. · score 81.3
Software - Infrastructure · price $396.52 · 1Y $396.21 · 5Y $500.21 · 10Y $641.51
FCF $1.3b C+ · Rev +18.3% B+ · D/E 2.71 D · P/E 23.7x B+ · PEG 0.92 B+
Why now. Software - Infrastructure · market cap $25.9b. Trading near 52-week high of $398.31 — momentum setup, limited technical margin of safety. Revenue growing +18%, comfortably above the S&P median. PEG 0.92 — paying under fair value for the growth rate. 14 sell-side analysts rate this a Buy with a mean 1-yr target of $396.21 (implying -0% upside).
Moat. Net margin 25% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 34% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 111% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. D/E 2.71 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Trading within 0% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.
Horizon. 1-3 yr $396.21 (analyst consensus (n=14)) — multiple re-rating thesis requires a catalyst. 5 yr $500.21 at ~5% CAGR — dividend + buyback compounding. 10 yr $641.51 if the moat survives secular pressure.
19. VEEV — Veeva Systems Inc. · score 80.4
Health Information Services · price $211.86 · 1Y $244.14 · 5Y $357.45 · 10Y $530.25
FCF $1.7b C+ · Rev +16.2% B+ · D/E 0.01 A- · P/E 37.6x C+ · PEG 0.92 B+
Why now. Health Information Services · market cap $34.4b. Down 32% 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 +15% 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 32% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trailing P/E 38x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. P/S 10.4x 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 ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $530.25 if current growth sustains into durable earnings power.
20. ACN — Accenture plc · score 79.8
Information Technology Services · price $170.43 · 1Y $178.89 · 5Y $225.85 · 10Y $289.64
FCF $12.6b A- · Rev +6.7% C+ · D/E 0.25 B · P/E 13.6x A · PEG 1.21 B
Why now. Information Technology Services · market cap $104.3b. Down 41% from 52-week high of $291.09 — deep drawdown territory. 25 sell-side analysts rate this a Buy with a mean 1-yr target of $178.89 (implying +5% upside).
Moat. ROE 24% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 162% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined. $104.3b 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. Down 41% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon. 1-3 yr $178.89 (analyst consensus (n=25)) — multiple re-rating thesis requires a catalyst. 5 yr $225.85 at ~6% CAGR — dividend + buyback compounding. 10 yr $289.64 if the moat survives secular pressure.
21. DECK — Deckers Outdoor Corporation · score 79.7
Footwear & Accessories · price $99.87 · 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 20% 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.
22. APP — AppLovin Corporation · score 79.5
Advertising Agencies · price $419.70 · 1Y $656.20 · 5Y $960.74 · 10Y $1,425
FCF $4.4b B · Rev +66.4% A · D/E 1.63 C · P/E 36.5x C+ · PEG 1.09 B+
Why now. Advertising Agencies · market cap $141.0b. 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 $656.20 (implying +56% 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. $141.0b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Down 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 2.53 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 37x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $656.20 (analyst consensus (n=30)) — fundamentals + valuation re-rating. 5 yr $960.74 at ~18% CAGR — compounding case rests on the competitive position widening. 10 yr $1,425 if current growth sustains into durable earnings power.
23. DXCM — DexCom, Inc. · score 79.4
Medical Devices · price $86.94 · 1Y $93.44 · 5Y $136.81 · 10Y $202.94
FCF $1.4b C+ · Rev +15.5% B+ · D/E 0.53 B · P/E 34.4x C+ · PEG 1.56 C+
Why now. Medical Devices · market cap $32.8b. Trading near 52-week high of $87.83 — 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 $93.44 (implying +7% 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 1% 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 34x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $93.44 (analyst consensus (n=25)) — fundamentals + valuation re-rating. 5 yr $136.81 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $202.94 if current growth sustains into durable earnings power.
24. MELI — MercadoLibre, Inc. · score 79.4
Internet Retail · price $1888.50 · 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 D · PEG 1.16 B+
Why now. Internet Retail · market cap $95.7b. Down 26% 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. $95.7b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. 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 ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $4,810 if current growth sustains into durable earnings power.
25. PODD — Insulet Corporation · score 78.9
Medical Devices · price $166.82 · 1Y $235.54 · 5Y $344.86 · 10Y $511.57
FCF $416m C · Rev +31.9% A · D/E 0.78 C+ · P/E 39.0x 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 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.
26. VRT — Vertiv Holdings Co · score 77.9
Electrical Equipment & Parts · price $269.93 · 1Y $337.50 · 5Y $494.13 · 10Y $733.01
FCF $2.9b B · Rev +26.2% A- · D/E 0.70 B · P/E 61.1x D · PEG 1.14 B+
Why now. Electrical Equipment & Parts · market cap $103.9b. Down 29% 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 $337.50 (implying +25% 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 61.1x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. 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 $337.50 (analyst consensus (n=26)) — fundamentals + valuation re-rating. 5 yr $494.13 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $733.01 if current growth sustains into durable earnings power.
27. FIVE — Five Below, Inc. · score 77.8
Specialty Retail · price $222.30 · 1Y $260.48 · 5Y $328.85 · 10Y $421.74
FCF $505m C+ · Rev +25.9% A- · D/E 0.86 B · P/E 28.0x C+ · PEG 0.98 B+
Why now. Specialty Retail · market cap $12.3b. 12% 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 +17% 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 ~8% CAGR — dividend + buyback compounding. 10 yr $421.74 if the moat survives secular pressure.
28. EME — EMCOR Group, Inc. · score 76.4
Engineering & Construction · price $819.88 · 1Y $1,044 · 5Y $1,318 · 10Y $1,691
FCF $1.2b C+ · Rev +18.9% B+ · D/E 0.13 A- · P/E 25.5x B+ · PEG 0.42 A
Why now. Engineering & Construction · market cap $36.2b. 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 +27% 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.
29. NFLX — Netflix, Inc. · score 76
Entertainment · price $73.57 · 1Y $94.33 · 5Y $138.10 · 10Y $204.87
FCF $11.2b A- · Rev +16.0% B+ · D/E 0.55 B · P/E 23.1x B · PEG 1.61 C+
Why now. Entertainment · market cap $306.3b. Down 42% 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 +28% 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. $306.3b 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 42% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 1.51 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 ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $204.87 if current growth sustains into durable earnings power.
30. CCK — Crown Holdings, Inc. · score 75.4
Packaging & Containers · price $121.66 · 1Y $136.57 · 5Y $172.42 · 10Y $221.12
FCF $1.2b C+ · Rev +10.3% B · D/E 1.86 C+ · P/E 17.5x B+ · PEG 0.64 A-
Why now. Packaging & Containers · market cap $13.2b. 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 +12% 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 0% 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 ~7% CAGR — dividend + buyback compounding. 10 yr $221.12 if the moat survives secular pressure.
Methodology footnote
Every pick on this list comes out of the same quality-growth model — one 0–100 score blending quality, growth, and value — applied to every US-listed common stock with a market cap above $1B. Each pick's score breakdown is auditable from the home page — click the ticker on the rankings page to see exactly which grades produced the number. Not investment advice. See terms for full disclosures.