This refresh
Data-driven refresh August 7, 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 (5,237 tickers); 1,656 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. HRMY — Harmony Biosciences Holdings, Inc. · score 90.7
Biotechnology · price $38.75 · 1Y $45.50 · 5Y $66.62 · 10Y $98.82
FCF $355m C · Rev +24.3% A- · D/E 0.16 B+ · P/E 12.5x A · PEG 0.58 A-
Why now. The bull case hinges on WAKIX’s dominant position in narcolepsy and the imminent launch of pitolisant in Prader‑Willi Syndrome, which together should sustain the 24.3% revenue growth seen YoY. At a PE of 12.5 and a PEG of 0.58, the market is pricing the business far below its growth trajectory, leaving ample upside. The thesis rests on compounding this pipeline‑driven growth into a higher earnings base, which the Bull Rankings model flags as the strongest pillar – Growth – and which should drive the stock toward the analyst consensus target of $45.50.
Moat. WAKIX is the only FDA‑approved therapy for excessive daytime sleepiness in adult narcolepsy in the U.S., giving Harmony a protected market with high switching costs and robust pricing power that underpins its 18.9% profit margin and 18.1% ROE. The company’s IP‑protected pitolisant platform and its rare‑neurology focus create a barrier to entry that competitors cannot quickly replicate, ensuring durable cash flow generation.
Risk. The bear case centers on clinical execution risk: pitolisant’s Phase 3 trial for Prader‑Willi Syndrome could fail, stripping away the next growth engine and exposing the stock to the reverse‑DCF implied -18% free‑cash‑flow growth assumption, which is far below the current 24.3% revenue growth. A miss would force the market to re‑price the stock at a more realistic growth rate, likely pulling the price back toward the 52‑week low of $25.52.
Horizon. 1-3 yr $45.50 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $66.62 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $98.82 if current growth sustains into durable earnings power.
2. ADBE — Adobe Inc. · score 89.8
Software - Application · price $260.24 · 1Y $269.61 · 5Y $394.73 · 10Y $585.56
FCF $10.3b A- · Rev +11.5% B · D/E 0.61 C+ · P/E 14.9x A- · PEG 0.61 A-
Why now. Adobe’s Digital Media subscription engine is the growth engine, delivering 11.5% YoY revenue growth, 28.7% profit margin and a staggering 62.8% ROE that fuels cash generation; together with a market‑cap of $103.4B and a P/E of 14.9, the stock is already pricing in the 0% free‑cash‑flow growth implied by our reverse‑DCF, meaning any upside from continued subscription expansion directly compounds earnings – the thesis rests on that recurring‑revenue tailwind staying intact.
Moat. The subscription‑based Digital Media suite locks in photographers, video editors and designers on multi‑year contracts, creating high switching costs; this recurring revenue stream underpins the 62.8% ROE, which stems from pricing power in a category where Adobe is the de‑facto platform for creative professionals, a position competitors cannot replicate quickly.
Risk. A 1.4 beta makes Adobe unusually sensitive to market swings, and the reverse‑DCF shows the current price assumes zero FCF growth despite a 11.5% revenue rise, indicating the market may be over‑optimistic; a slowdown in subscription renewals or a rise in debt‑to‑equity above 0.61 would force the P/E to compress, confirming the bear case.
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. DOCS — Doximity, Inc. · score 89.5
Health Information Services · price $20.66 · 1Y $24.61 · 5Y $36.03 · 10Y $53.45
FCF $306m C · Rev +11.2% B · D/E 0.01 A · P/E 21.1x B+ · PEG 0.59 A-
Why now. DOCS’ Ask AI assistant is driving a new wave of evidence‑based clinical workflow adoption, propelling an 11.2% YoY revenue lift and a 25.5% profit margin—metrics that underpin our Bull Rankings model’s 89.5/100 quality‑growth score, with Growth at 90 and Quality at 88. The platform’s 5.7× TTM price‑to‑sales and 21.1× P/E, coupled with a 0.01 debt‑to‑equity, signal that the market is already pricing in a modest 2%/yr free‑cash‑flow growth, leaving ample upside if Ask continues to capture the $3.7B market cap’s unmet need for seamless clinical decision support. The thesis rests on Ask’s ability to lock in a high‑margin, high‑velocity revenue stream that will compound as more physicians integrate it into daily practice.
Moat. DOCS’ Ask AI assistant is a HIPAA‑compliant, evidence‑based tool that plugs directly into physicians’ existing workflows, creating a high switching cost and a network effect as each new member unlocks richer peer data. The personalized newsfeed and sponsored content ecosystem further deepen engagement, making it difficult for competitors to replicate the same level of contextual relevance and data integration without substantial investment in clinical content licensing and AI infrastructure.
Risk. The bear case hinges on the risk that Ask’s adoption could plateau if larger health systems consolidate their own AI tools, eroding DOCS’ 0.01 debt‑to‑equity advantage. A P/E of 21.1, while modest, still reflects a 2%/yr free‑cash‑flow growth assumption that may be hard to sustain if revenue growth decelerates from the current 11.2% YoY, and a beta of 1.21 exposes the stock to broader market swings that could erode the 25.5% profit margin.
Horizon. 1-3 yr $24.61 (analyst consensus (n=18)) — fundamentals + valuation re-rating. 5 yr $36.03 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $53.45 if current growth sustains into durable earnings power.
4. DLO — DLocal Limited · score 89.1
Software - Infrastructure · price $14.77 · 1Y $18.25 · 5Y $26.72 · 10Y $39.64
FCF $413m C · Rev +46.6% A · D/E 0.20 B+ · P/E 23.1x B+ · PEG 0.50 A
Why now. DLocal’s cross‑border pay‑in platform for high‑growth merchants—especially in streaming, ride‑hailing and e‑learning—is exploding, delivering 46.6% YoY revenue growth, 18% profit margin and a 34.6% ROE. Those fundamentals sit under our model’s strongest pillar, Growth (100), and the sub‑$15 price still trades at a modest PE of 23.1x with a PEG of 0.5, meaning the market is under‑pricing the compounding cash‑flow engine. The thesis rests on the relentless expansion of global digital commerce that DLocal uniquely captures.
Moat. The moat lives in DLocal’s “pay‑in for platforms” suite, which aggregates hundreds of local cards, bank transfers and alternative payment methods into a single API, creating deep integration and switching costs for merchants that need to serve fragmented emerging‑market consumers. This network effect fuels pricing power, reflected in the 34.6% ROE, and cannot be replicated quickly by generic processors lacking DLocal’s local‑payment partnerships.
Risk. The Bull Rankings model flags diluting shareholders and a reverse‑DCF that implies a -7% annual free‑cash‑flow growth rate, meaning the current price already assumes unsustainable optimism versus the 46.6% revenue surge. A slowdown in cross‑border spend or a competitive win by a global processor would force the PE down from 23.1x, confirming the bear case. The key trigger is a material miss on quarterly FCF growth, which would validate the over‑valuation signal.
Horizon. 1-3 yr $18.25 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $26.72 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $39.64 if current growth sustains into durable earnings power.
5. PGY — Pagaya Technologies Ltd. · score 88.6
Software - Infrastructure · price $21.42 · 1Y $28.50 · 5Y $41.73 · 10Y $61.90
FCF $252m C · Rev +25.6% A- · D/E 1.34 C · P/E 15.2x A- · PEG 0.04 A
Why now. Pagaya Technologies is a compelling growth story, leveraging its proprietary AI to capture significant market share in financial services by optimizing loan application processes through products like Decline Monetization. Our model's Growth pillar scores a perfect 100, reflecting the company's robust 25.6% FY YoY revenue growth and a highly attractive 0.04 PEG ratio. The market's current valuation, implying a ~-14%/yr free-cash-flow growth sustained for 10 years by our reverse DCF, drastically underestimates Pagaya's ability to compound its $252m TTM free cash flow, making the current price a deep discount to its true potential. The crux lies in the sustained adoption of its AI network by financial partners seeking to approve customers they would otherwise decline.
Moat. Pagaya's competitive edge stems from its proprietary artificial intelligence-powered technology and the growing network effect created by its financial services partners. As more partners utilize products like Decline Monetization and Dual Look to assess loan applications, the AI models gain more data, enhancing their predictive accuracy and value proposition. This creates significant switching costs and a self-reinforcing loop, making it increasingly difficult for competitors to replicate the depth and breadth of Pagaya's data science capabilities and network reach.
Risk. The bear case for Pagaya centers on its significant operational leverage and exposure to credit cycles, exacerbated by shareholder dilution and extreme volatility. Our model's Quality-growth score of 88.6/100 flags Quality as its weakest pillar at 70/100, and explicitly warns of "Diluting shareholders," a caution amplified by a high debt-to-equity ratio of 1.34. Furthermore, the stock's staggering 5.37 beta indicates it is highly susceptible to market downturns, making it a risky bet if the broader financial services sector faces headwinds. A sustained increase in charge-offs or a slowdown in partner adoption of its AI network would confirm the bear thesis, signaling a fundamental flaw in its growth strategy.
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.
6. INTU — Intuit Inc. · score 88.1
Software - Application · price $321.91 · 1Y $454.65 · 5Y $665.66 · 10Y $987.46
FCF $7.8b B+ · Rev +15.1% B+ · D/E 0.33 B · P/E 19.6x B+ · PEG 0.83 B+
Why now. Intuit’s QuickBooks platform is the engine of relentless SMB compounding, delivering 15.1% YoY revenue growth, 21.9% profit margin and a stellar 22.2% ROE that together outpace peers; the Bull Rankings model rates its Growth pillar at 95, making the franchise a high‑quality compounder that should keep earnings expanding as more small‑businesses adopt its integrated accounting‑payroll‑financing suite. The thesis rests on the continued stickiness of QuickBooks and Mailchimp cross‑sell, which fuels the same growth engine for years to come.
Moat. The QuickBooks ecosystem locks SMBs into a single‑source financial stack—accounting, payroll, payments and financing—creating high switching costs and a data moat that lets Intuit price premium services, evident in its 22.2% ROE driven by pricing power in the small‑business segment. Mailchimp adds a marketing‑automation layer, deepening customer relationships and expanding the addressable spend per client.
Risk. The market is pricing optimism: a reverse‑DCF shows the current $321.91 price implies a negative 4% annual free‑cash‑flow growth over ten years, far below the 15.1% revenue expansion, meaning any slowdown or margin compression would crush valuation. A pullback in SMB spending or a successful competitor push into integrated finance could force the PE of 19.6 to normalize, and a breach of the 52‑week low $252.84 would confirm the downside.
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.
7. NBIX — Neurocrine Biosciences, Inc. · score 87.5
Drug Manufacturers - Specialty & Generic · price $159.82 · 1Y $213.13 · 5Y $312.04 · 10Y $462.89
FCF $870m C+ · Rev +34.4% A · D/E 0.12 B+ · P/E 23.3x B+ · PEG 0.49 A
Why now. NBIX is poised to compound on its market‑leading position in rare endocrine and movement‑disorder therapies, anchored by INGREZZA and Oriahnn, which together drive a 34.4% YoY revenue growth and a robust 20.9% profit margin. The Bull Rankings model awards a stellar Growth pillar (100) and a low PEG of 0.49, indicating earnings can keep accelerating while valuation remains disciplined. The thesis hinges on sustained expansion of these niche franchises, which should keep free‑cash‑flow growing at double‑digit rates and push the stock toward the consensus 1‑yr target.
Moat. NBIX’s moat stems from deep IP protection and specialist expertise in low‑volume, high‑price indications such as tardive dyskinesia (INGREZZA) and uterine fibroids (Oriahnn), creating high switching costs for patients and prescribers. Its ROE of 19.1% reflects pricing power in these orphan markets, where few competitors can match the clinical data package and regulatory approvals required to enter.
Risk. The bear case focuses on execution risk in the pipeline; failure of late‑stage candidates like NBI‑1076986 would strip growth, and the current P/E of 23.3 is elevated for a specialty biotech, implying the market may already price in optimistic cash‑flow growth. A slowdown in revenue acceleration below the 34% historic rate would validate a valuation correction, and a rise in debt‑to‑equity beyond the modest 0.12 would erode the balance‑sheet cushion.
Horizon. 1-3 yr $213.13 (analyst consensus (n=27)) — fundamentals + valuation re-rating. 5 yr $312.04 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $462.89 if current growth sustains into durable earnings power.
8. NVDA — NVIDIA Corporation · score 86
Semiconductors · price $218.99 · 1Y $302.83 · 5Y $443.37 · 10Y $657.71
FCF $119.1b A · Rev +70.7% A · D/E 0.07 B+ · P/E 33.5x B · PEG 0.57 A-
Why now. NVDA’s data‑center AI platform is the single engine driving a 70.7% YoY revenue surge, powered by its Compute & Networking segment that dominates the high‑margin AI inference market; free‑cash‑flow of $119.1 billion fuels a 33.5× P/E that still leaves room for a 50%/yr implied growth, and a 63% profit margin that outpaces the sector by a wide margin. The combination of a 70.7% revenue lift, $119.1 billion FCF, and 63% margin underpins a growth story that will compound beyond the current price.
Moat. NVDA’s moat is its proprietary GPU architecture that underpins both the GeForce gaming line and the high‑performance data‑center GPUs; the same silicon powers its automotive autonomous platform, creating a cross‑segment IP stack that competitors cannot replicate quickly. This leads to a 81.7% ROE driven by pricing power in both gaming and enterprise data‑center markets, a benefit that is protected by deep customer switching costs and a network effect in AI software.
Risk. The bear case hinges on the 2.21 beta and the 33.5× P/E, which suggest that the market is pricing in aggressive growth that may not materialize if AI demand slows; a 70% dividend payout relative to FCF could strain cash if revenue growth decelerates. A sharp drop in data‑center AI adoption or a disruptive competitor in the GPU space would erode margins and invalidate the 50%/yr implied growth.
Horizon. 1-3 yr $302.83 (analyst consensus (n=58)) — fundamentals + valuation re-rating. 5 yr $443.37 at ~15% 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 85.4
Software - Infrastructure · price $90.35 · 1Y $104.80 · 5Y $153.44 · 10Y $227.61
FCF $1.7b C+ · Rev +7.4% B · D/E n/a · P/E 13.4x A · PEG 0.68 A-
Why now. The bull case hinges on GoDaddy’s Applications & Commerce suite—especially the high‑margin Websites + Marketing and Managed WordPress platforms—driving a cash‑rich engine that can compound at a sustainable rate. The business is delivering 7.4% revenue growth YoY, a solid 17.8% profit margin, and a free‑cash‑flow haul of $1.7 B against an $11.4 B market cap, all while the Bull Rankings model rates its Quality at 95 (overall score 85.4) and flags stock buy‑backs as a positive signal. The thesis rests on the fact that the company’s real growth (≈7% YoY) far exceeds the reverse‑DCF implied -17% FCF growth, meaning the market is already over‑optimistic—leaving upside for disciplined buy‑backs and margin expansion.
Moat. GoDaddy’s moat stems from its integrated platform that locks small‑business owners into a single ecosystem for domain registration, website building, and e‑commerce, creating high switching costs and network benefits as customers add marketing tools like GoDaddy Studio. The Core Platform underpins the A&C segment with proprietary cloud infrastructure that rivals can’t replicate quickly, preserving pricing power and a sticky user base.
Risk. The bear case focuses on the slowing top‑line pace—revenue growth has slipped to just 7.4% YoY—while the market still values the stock at a modest PE of 13.4, suggesting any further deceleration or margin compression could trigger a sharp re‑rating. A widening gap between the reverse‑DCF implied -17% FCF growth and actual performance would confirm the over‑valuation, and a missed buy‑back execution would erode the share‑count advantage.
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. EXLS — ExlService Holdings, Inc. · score 84.1
Information Technology Services · price $34.66 · 1Y $44.38 · 5Y $64.97 · 10Y $96.38
FCF $297m C · Rev +13.4% B+ · D/E 0.57 C+ · P/E 21.9x B+ · PEG 1.01 B+
Why now. EXLS is compounding at 13.4% revenue growth while converting that growth into 32.3% ROE and $297M in TTM free cash flow — a rare trifecta for a $5.3B market cap. The company’s AI-driven claims management and actuarial analytics in the Insurance segment are sticky because they embed directly into client workflows, turning data and models into regulatory-required outputs that are costly to migrate. The crux: every dollar of premium or claim processed through EXLS’s systems cements the relationship for years, and the model’s 84.1/100 Quality-growth score (with Growth at 91) confirms this isn’t a flash in the pan.
Moat. The moat is actuarial and claims IP embedded in client systems, not a brand or scale advantage. EXLS’s 32.3% ROE is driven by pricing power in policy research and underwriting support, where its actuarial models reduce client loss ratios by 5-8% — a margin that competitors can’t replicate without years of audited validation. The International Growth Markets segment compounds this advantage by locking in early adopters in high-growth regions where regulatory complexity makes switching prohibitively expensive.
Risk. The bear case is that 21.9x P/E assumes the 13.4% revenue growth persists, but the reverse DCF implies 3% FCF growth for a decade — a gap that only works if EXLS cracks the Healthcare and Life Sciences segment at scale. A single large client loss in Insurance (40% of revenue) or deceleration in Banking, Capital Markets, and Diversified Industries would break the thesis. The signal to watch: revenue growth below 10% for two consecutive quarters.
Horizon. 1-3 yr $44.38 (analyst consensus (n=8)) — fundamentals + valuation re-rating. 5 yr $64.97 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $96.38 if current growth sustains into durable earnings power.
11. ANIP — ANI Pharmaceuticals, Inc. · score 83.9
Drug Manufacturers - Specialty & Generic · price $82.63 · 1Y $110.00 · 5Y $161.05 · 10Y $238.91
FCF $191m C · Rev +37.0% A · D/E 1.12 C · P/E 21.1x B+ · PEG 0.48 A
Why now. ANI’s specialty injectable franchise – led by ILUVIEN and YUTIQ – is exploding, delivering 37% YoY revenue growth, a PE of 21.1 on a PEG of 0.48, and $191 m of free cash flow that fuels reinvestment. Our Bull Rankings model crowns growth as the strongest pillar (Growth 100) and the 10‑year reverse‑DCF shows the market is already pricing in a –7% FCF growth rate, far below the real‑world 37% top‑line expansion, meaning the upside is still under‑priced. The thesis rests on the compounding power of its high‑margin injectables continuing to outpace peers.
Moat. ANI’s moat stems from its entrenched relationships with specialty pharmacies and hospital distributors for its injectable portfolio, creating switching costs for physicians accustomed to its delivery systems. The 16.3% ROE reflects pricing power in niche ophthalmic and dermatologic markets, while its low beta (0.46) underscores defensive demand that competitors can’t quickly replicate without similar regulatory approvals and distribution networks.
Risk. The market may be over‑optimistic: the current price embeds a –7% FCF growth assumption, yet a PE of 21.1 is high for a specialty generic player, and a debt‑to‑equity of 1.12 leaves limited headroom if growth decelerates. A slowdown in injectable sales or tighter reimbursement would push the PE to unsustainable levels, confirming the bear case if the 52‑week low of $67.98 is retested.
Horizon. 1-3 yr $110.00 (analyst consensus (n=8)) — fundamentals + valuation re-rating. 5 yr $161.05 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $238.91 if current growth sustains into durable earnings power.
12. CARG — CarGurus, Inc. · score 82.7
Auto & Truck Dealerships · price $36.38 · 1Y $37.77 · 5Y $55.30 · 10Y $82.03
FCF $315m C · Rev +13.9% B+ · D/E 0.79 B · P/E 19.1x B · PEG 1.12 B+
Why now. CarGurus’ Digital Deal platform is turning its massive shopper audience into a high‑margin, repeat‑purchase engine, driving revenue growth of 13.9% YoY while delivering an 18.2% profit margin and a ROE of 66.6%. The business’s free‑cash‑flow generation of $315 m on a $3.3 b market cap fuels ongoing buybacks, reinforcing shareholder upside. The thesis hinges on the Digital Deal’s ability to capture more of the vehicle purchase funnel, compounding earnings at double‑digit rates.
Moat. The moat comes from CarGurus’ integrated marketplace that locks dealers into subscription fees and advertising spend, creating a sticky revenue stream tied to a large, engaged buyer base. Its high ROE of 66.6% reflects pricing power from being the go‑to online hub for car shoppers, a position rivals can’t replicate quickly without comparable traffic and data assets.
Risk. The bear case centers on the elevated valuation: a P/E of 19.1 implies the market already prices in near‑term growth, yet revenue growth is only 13.9% and the reverse‑DCF shows the current price assumes a -2% annual free‑cash‑flow trajectory, a mismatch that could trigger a correction if growth stalls. A rising debt‑to‑equity of 0.79 and beta of 1.17 add financial and market volatility risk, and a break‑even in Digital Deal adoption would crush the upside.
Horizon. 1-3 yr $37.77 (analyst consensus (n=13)) — fundamentals + valuation re-rating. 5 yr $55.30 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $82.03 if current growth sustains into durable earnings power.
13. TTD — The Trade Desk, Inc. · score 82.6
Advertising Agencies · price $17.67 · 1Y $24.32 · 5Y $35.61 · 10Y $52.82
FCF $863m C+ · Rev +11.6% B · D/E 0.17 A- · P/E 21.5x B · PEG 0.90 B+
Why now. The bull case hinges on The Trade Desk’s dominance in cross‑device programmatic, especially its CTV and audio capabilities, which are driving an 11.6% YoY revenue growth and a 13.6% profit margin—figures that outpace the sector. Our model’s 82.6/100 quality‑growth score, with Growth at 86, underscores the company’s ability to compound earnings while maintaining a 15.8% ROE that signals pricing power in the agency‑to‑advertiser channel. The current price of $17.67 already leaves ample upside as the platform scales its data‑and‑value‑added services.
Moat. The Trade Desk’s moat is its platform’s data‑driven optimization engine that delivers superior targeting across CTV, display, audio, and native formats. This network effect locks in agencies and advertisers, creating high switching costs because each campaign builds a proprietary data set that competitors cannot replicate quickly. The result is a 15.8% ROE that reflects the cost advantage of serving a broad device ecosystem from a single, cloud‑native platform.
Risk. The bear case centers on the elevated 21.5× P/E, which already assumes aggressive growth; a slowdown in digital‑ad spend or a shift to alternative ad formats could erode the 11.6% revenue growth. Additionally, the debt‑to‑equity of 0.17, while modest, could pressure margins if the company needs to finance new data‑center capacity to keep pace with competitors. A sharp decline in the 13.6% profit margin would signal that the platform’s pricing power is weakening, breaking the bull thesis.
Horizon. 1-3 yr $24.32 (analyst consensus (n=30)) — fundamentals + valuation re-rating. 5 yr $35.61 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $52.82 if current growth sustains into durable earnings power.
14. CVSA — Covista Inc. · score 81.2
Education & Training Services · price $124.26 · 1Y $156.25 · 5Y $197.26 · 10Y $252.98
FCF $393m C · Rev +9.3% B · D/E 0.54 B+ · P/E 18.1x B+ · PEG 0.88 B+
Why now. Education & Training Services · market cap $4.2b. Down 20% from 52-week high of $156.26 — deep drawdown territory. PEG 0.88 — paying under fair value for the growth rate. 4 sell-side analysts publish a mean 1-yr target of $156.25 (implying +26% upside).
Moat. Net margin 13% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 17% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 156% 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 $156.25 (analyst consensus (n=4)) — multiple re-rating thesis requires a catalyst. 5 yr $197.26 at ~10% CAGR — dividend + buyback compounding. 10 yr $252.98 if the moat survives secular pressure.
15. RMD — ResMed Inc. · score 81.2
Medical Instruments & Supplies · price $223.24 · 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 1.34 B
Why now. Medical Instruments & Supplies · market cap $32.4b. Down 24% from 52-week high of $293.81 — deep drawdown territory. Revenue growing +10%, comfortably above the S&P median. 15 sell-side analysts rate this a Buy with a mean 1-yr target of $248.53 (implying +11% upside).
Moat. Net margin 27% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 23% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 115% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon. 1-3 yr $248.53 (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. CPAY — Corpay, Inc. · score 81
Software - Infrastructure · price $398.28 · 1Y $396.21 · 5Y $500.21 · 10Y $641.51
FCF $1.3b C+ · Rev +18.3% B+ · D/E 2.71 D · P/E 23.9x B+ · PEG 0.96 B+
Why now. Software - Infrastructure · market cap $26.0b. Trading near 52-week high of $399.76 — momentum setup, limited technical margin of safety. Revenue growing +18%, comfortably above the S&P median. PEG 0.96 — 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 -1% 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.
17. META — Meta Platforms, Inc. · score 80.9
Internet Content & Information · price $589.90 · 1Y $756.95 · 5Y $955.63 · 10Y $1,226
FCF $48.3b A · Rev +26.2% A- · D/E 0.43 B+ · P/E 22.2x B · PEG 0.88 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 0.88 — paying under fair value for the growth rate. 57 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $756.95 (implying +28% 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 $756.95 (analyst consensus (n=57)) — multiple re-rating thesis requires a catalyst. 5 yr $955.63 at ~10% CAGR — dividend + buyback compounding. 10 yr $1,226 if the moat survives secular pressure.
18. APP — AppLovin Corporation · score 80.6
Advertising Agencies · price $335.67 · 1Y $656.20 · 5Y $960.74 · 10Y $1,425
FCF $4.5b B · Rev +60.6% A · D/E 1.63 C · P/E 25.8x C+ · PEG 1.15 B+
Why now. Advertising Agencies · market cap $112.8b. Down 55% from 52-week high of $745.61 — deep drawdown territory. Revenue growing +61% — in hypergrowth territory. 30 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $656.20 (implying +95% upside).
Moat. Net margin 65% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. FCF converts 103% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined. $112.8b 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 55% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 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. P/S 16.5x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon. 1-3 yr $656.20 (analyst consensus (n=30)) — fundamentals + valuation re-rating. 5 yr $960.74 at ~23% CAGR — compounding case rests on the competitive position widening. 10 yr $1,425 if current growth sustains into durable earnings power.
19. VEEV — Veeva Systems Inc. · score 80.4
Health Information Services · price $217.80 · 1Y $244.14 · 5Y $357.45 · 10Y $530.25
FCF $1.7b C+ · Rev +16.2% B+ · D/E 0.01 A- · P/E 38.6x C+ · PEG 0.93 B+
Why now. Health Information Services · market cap $35.4b. Down 30% from 52-week high of $310.50 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. PEG 0.93 — 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 +12% 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. Trailing P/E 39x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. P/S 10.7x 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 ~10% 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 80.2
Information Technology Services · price $171.11 · 1Y $178.89 · 5Y $225.85 · 10Y $289.64
FCF $12.6b A- · Rev +6.7% C+ · D/E 0.25 B · P/E 13.7x A · PEG 1.20 B+
Why now. Information Technology Services · market cap $104.7b. 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. $104.7b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Down 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. EPAM — EPAM Systems, Inc. · score 80.2
Information Technology Services · price $93.07 · 1Y $133.94 · 5Y $169.10 · 10Y $216.86
FCF $483m C · Rev +10.8% B · D/E 0.08 B+ · P/E 13.4x A · PEG 0.57 A-
Why now. Information Technology Services · market cap $4.9b. Down 58% from 52-week high of $222.53 — deep drawdown territory. Revenue growing +11%, comfortably above the S&P median. PEG 0.57 — 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 +44% upside).
Moat. ROE 11% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 120% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 58% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon. 1-3 yr $133.94 (analyst consensus (n=17)) — multiple re-rating thesis requires a catalyst. 5 yr $169.10 at ~13% CAGR — dividend + buyback compounding. 10 yr $216.86 if the moat survives secular pressure.
22. DECK — Deckers Outdoor Corporation · score 79.3
Footwear & Accessories · price $97.87 · 1Y $122.81 · 5Y $155.04 · 10Y $198.84
FCF $1.1b C+ · Rev +7.9% B · D/E 0.21 A- · P/E 13.9x A- · PEG 1.22 B
Why now. Footwear & Accessories · market cap $13.3b. Down 22% from 52-week high of $125.45 — deep drawdown territory. 21 sell-side analysts rate this a Buy with a mean 1-yr target of $122.81 (implying +25% 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 ~10% CAGR — dividend + buyback compounding. 10 yr $198.84 if the moat survives secular pressure.
23. GMED — Globus Medical, Inc. · score 79.3
Medical Devices · price $81.08 · 1Y $103.92 · 5Y $152.15 · 10Y $225.71
FCF $756m C+ · Rev +19.7% B+ · D/E 0.02 A- · P/E 18.9x A- · PEG 1.49 B
Why now. Medical Devices · market cap $11.0b. Down 20% from 52-week high of $101.40 — deep drawdown territory. Revenue growing +20%, comfortably above the S&P median. 13 sell-side analysts rate this a Buy with a mean 1-yr target of $103.92 (implying +28% upside).
Moat. Net margin 17% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. 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. Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon. 1-3 yr $103.92 (analyst consensus (n=13)) — fundamentals + valuation re-rating. 5 yr $152.15 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $225.71 if current growth sustains into durable earnings power.
24. DXCM — DexCom, Inc. · score 79
Medical Devices · price $83.02 · 1Y $93.44 · 5Y $136.81 · 10Y $202.94
FCF $1.4b C+ · Rev +15.5% B+ · D/E 0.53 B · P/E 32.8x B · PEG 1.65 C+
Why now. Medical Devices · market cap $31.3b. 5% off the 52-week high of $87.63. 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 +13% 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. 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 33x 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 ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $202.94 if current growth sustains into durable earnings power.
25. MELI — MercadoLibre, Inc. · score 78.4
Internet Retail · price $1830.00 · 1Y $2,215 · 5Y $3,243 · 10Y $4,810
FCF $12.4b A- · Rev +41.2% A · D/E 1.70 C+ · P/E 48.3x D · PEG 1.16 B+
Why now. Internet Retail · market cap $92.8b. Down 28% from 52-week high of $2548.50 — deep drawdown territory. Revenue growing +41% — in hypergrowth territory. 24 sell-side analysts rate this a Buy with a mean 1-yr target of $2,215 (implying +21% 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. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $92.8b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Trailing P/E 48x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. E-commerce competition — Amazon, Walmart, Shein, and Temu have each forced the rest of the category to compete on price, fulfillment speed, or assortment; sustaining margins requires one of those being structurally defended.
Horizon. 1-3 yr $2,215 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $3,243 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $4,810 if current growth sustains into durable earnings power.
26. WMG — Warner Music Group Corp. · score 77.8
Entertainment · price $26.44 · 1Y $37.41 · 5Y $47.23 · 10Y $60.57
FCF $836m C+ · Rev +12.9% B+ · D/E 5.08 D · P/E 21.2x B · PEG 0.47 A
Why now. Entertainment · market cap $13.8b. Down 25% from 52-week high of $35.42 — deep drawdown territory. Revenue growing +13%, comfortably above the S&P median. PEG 0.47 — paying under fair value for the growth rate. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $37.41 (implying +41% upside).
Moat. ROE 79% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 124% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. D/E 5.08 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer.
Horizon. 1-3 yr $37.41 (analyst consensus (n=17)) — multiple re-rating thesis requires a catalyst. 5 yr $47.23 at ~12% CAGR — dividend + buyback compounding. 10 yr $60.57 if the moat survives secular pressure.
27. VRT — Vertiv Holdings Co · score 77.2
Electrical Equipment & Parts · price $275.17 · 1Y $337.50 · 5Y $494.13 · 10Y $733.01
FCF $2.9b B · Rev +26.2% A- · D/E 0.70 B · P/E 62.3x D · PEG 1.24 B
Why now. Electrical Equipment & Parts · market cap $105.9b. Down 28% 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 +23% 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 62.3x 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 ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $733.01 if current growth sustains into durable earnings power.
28. EME — EMCOR Group, Inc. · score 76.5
Engineering & Construction · price $808.43 · 1Y $1,044 · 5Y $1,318 · 10Y $1,691
FCF $1.2b C+ · Rev +18.9% B+ · D/E 0.13 A- · P/E 25.1x B+ · PEG 0.41 A
Why now. Engineering & Construction · market cap $35.7b. 15% off the 52-week high of $951.96. Revenue growing +19%, comfortably above the S&P median. PEG 0.41 — paying under fair value for the growth rate. 7 sell-side analysts rate this a Buy with a mean 1-yr target of $1,044 (implying +29% 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. FIVE — Five Below, Inc. · score 75.9
Specialty Retail · price $231.12 · 1Y $260.48 · 5Y $328.85 · 10Y $421.74
FCF $505m C+ · Rev +25.9% A- · D/E 0.86 B · P/E 29.1x C+ · PEG 0.98 B+
Why now. Specialty Retail · market cap $12.8b. 8% 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 publish a mean 1-yr target of $260.48 (implying +13% 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 ~7% CAGR — dividend + buyback compounding. 10 yr $421.74 if the moat survives secular pressure.
30. NFLX — Netflix, Inc. · score 75.8
Entertainment · price $73.69 · 1Y $94.33 · 5Y $138.10 · 10Y $204.87
FCF $11.2b A- · Rev +16.0% B+ · D/E 0.55 B · P/E 23.2x B · PEG 1.64 C+
Why now. Entertainment · market cap $306.8b. 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. $306.8b 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 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.
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.