This refresh
Data-driven refresh August 10, 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 (5,242 tickers); 1,675 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 90.5
Biotechnology · price $39.00 · 1Y $46.10 · 5Y $67.50 · 10Y $100.12
FCF $355m C · Rev +24.3% A- · D/E 0.16 B+ · P/E 12.6x A · PEG 0.59 A-
Why now. Harmony’s dominant position with WAKIX for narcolepsy fuels a compounding revenue engine, underpinned by 24.3% YoY revenue growth, a healthy 18.9% profit margin, and a low 0.16 debt‑to‑equity ratio that lets cash flow fund pipeline expansion; the upside hinges on the Phase‑3 PWS trial unlocking a new rare‑disease market, making the stock a high‑growth compounder.
Moat. WAKIX’s novel mechanism of action gives Harmony a first‑to‑market advantage in the U.S. narcolepsy space, creating prescribing inertia and insurance coverage that competitors can’t replicate quickly; the 18.1% ROE reflects pricing power from this niche leadership and the ability to reinvest free cash flow of $355 m into next‑generation pitolisant formulations.
Risk. The bear case centers on execution risk in the Phase‑2/3 pipeline—if the PWS or Myotonic Dystrophy trials miss endpoints, growth could stall while the current PE of 12.6, though modest, would be stretched by a potential margin compression; a widening of the debt‑to‑equity ratio above 0.3 would confirm the downside.
Horizon. 1-3 yr $46.10 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $67.50 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $100.12 if current growth sustains into durable earnings power.
2. DLO — DLocal Limited · score 89.4
Software - Infrastructure · price $14.37 · 1Y $18.25 · 5Y $26.72 · 10Y $39.64
FCF $413m C · Rev +46.6% A · D/E 0.20 B · P/E 22.5x B+ · PEG 0.48 A
Why now. The Bull Rankings model gives DLO a perfect 100/100 for Growth, and it's easy to see why: the company reported a stellar 46.6% FY YoY revenue growth. With a PEG ratio of just 0.48, the market is severely underpricing this growth, especially considering the robust 18% profit margin DLO maintains. Our reverse DCF analysis implies the current price bakes in a pessimistic ~-8%/yr free-cash-flow growth for the next decade, a stark contrast to its actual performance, suggesting significant upside as DLocal continues to expand its pay-in and pay-out solutions for global merchants across hundreds of alternative payment methods. The crux of the thesis is DLO's ability to compound earnings by simplifying complex international and local payment processing, a critical need for online commerce.
Moat. DLocal's durable edge stems from its comprehensive, embedded payment processing infrastructure, offering global merchants a single solution for diverse payment methods including international/local cards, online bank transfers, direct debit, cash, and hundreds of APMs. This breadth, coupled with specialized offerings like "dLocal for Platforms," creates high switching costs and a powerful network effect for businesses expanding globally. The company's exceptional 34.6% Return on Equity is a testament to its pricing power and operational efficiency derived from being a critical, integrated partner in the complex cross-border and local-to-local transaction landscape.
Risk. While DLO's growth is undeniable, our model flags Quality as its weakest pillar (84/100) and signals "Diluting shareholders (caution)," suggesting potential long-term concerns about the quality or financing of that growth. The payment processing sector is intensely competitive, and DLocal's reliance on expanding its merchant base for pay-in and pay-out solutions could face headwinds from larger, more established players or new entrants. A sustained deceleration in its revenue growth rate, particularly if accompanied by an increase in share count, would be the concrete signal confirming the bear case and challenging the current valuation, despite the low PEG.
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.
3. ADBE — Adobe Inc. · score 89.3
Software - Application · price $272.96 · 1Y $269.61 · 5Y $394.73 · 10Y $585.56
FCF $10.3b A- · Rev +11.5% B · D/E 0.61 C+ · P/E 15.6x A- · PEG 0.64 A-
Why now. Adobe’s Digital Media subscription engine is the cash‑cow that fuels a relentless earnings engine – revenue is climbing 11.5% YoY, free cash flow sits at a massive $10.3B, and profit margins stay robust at 28.7%. Those fundamentals, combined with a P/E of 15.6× and a PEG of 0.64, mean the stock is already priced for modest growth, yet the subscription base continues to compound, delivering the upside the Bull Rankings model flags as its strongest pillar – Quality. The thesis rests on the subscription‑driven cash flow staying sticky and expanding.
Moat. The Creative Cloud suite locks in photographers, video editors and designers with multi‑year contracts and deep integration across Adobe’s Digital Experience platform, creating a high switching cost. This pricing power underpins an ROE of 62.8%, far above sector peers, and the integrated analytics‑to‑commerce stack makes it hard for rivals to replicate the end‑to‑end workflow.
Risk. A 1.4 beta and a debt‑to‑equity of 0.61 expose Adobe to market volatility, while the reverse‑DCF shows the current price assumes only ~1% annual free‑cash‑flow growth versus the actual 11.5% revenue growth – a mismatch that could reverse sharply if subscription renewals slow. A sustained slowdown in Digital Media growth would push the P/E to unsustainable levels and trigger a sell‑off, confirming the bear case.
Horizon. 1-3 yr $269.61 (analyst consensus (n=34)) — fundamentals + valuation re-rating. 5 yr $394.73 at ~8% CAGR — compounding case rests on the competitive position widening. 10 yr $585.56 if current growth sustains into durable earnings power.
4. PGY — Pagaya Technologies Ltd. · score 88.6
Software - Infrastructure · price $21.60 · 1Y $28.50 · 5Y $41.73 · 10Y $61.90
FCF $252m C · Rev +25.6% A- · D/E 1.34 C · P/E 15.3x A- · PEG 0.04 A
Why now. Pagaya’s Decline Monetization product is driving a 25.6% YoY revenue surge, backed by a free‑cash‑flow of $252 m and a profit margin of 9.1%—the three numbers that make the case for owning PGY now. Our model’s 88.6/100 quality‑growth score, with Growth at 100 and Quality at 70, shows that the business is already compounding at the highest end of the sector, and the 15.3 P/E indicates the market is pricing in a sustainable upside. The thesis rests on the fact that PGY’s AI‑powered loan‑rejection engine is a high‑barrier, network‑effect product that will continue to scale as lenders seek to monetize declined applications.
Moat. The moat is the proprietary AI engine behind Decline Monetization, which lets partners automatically route rejected loan applications to a network that can approve them—creating a data‑rich, self‑reinforcing loop that competitors cannot replicate quickly. This network effect drives customer lock‑in, while the 19.5% ROE shows pricing power from being the go‑to solution for institutional lenders in the U.S., Israel, and the Cayman Islands.
Risk. The bear case hinges on the high beta of 5.37 and a debt‑to‑equity of 1.34, which expose PGY to market swings and leverage risk. If the 15.3 P/E turns out to be over‑optimistic and revenue growth stalls, the valuation will collapse, especially given the reverse‑DCF implied free‑cash‑flow growth of –14%/yr—far below the 25.6% revenue growth the model assumes.
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. OSCR — Oscar Health, Inc. · score 88.4
Healthcare Plans · price $27.67 · 1Y $28.20 · 5Y $41.29 · 10Y $61.25
FCF $4.4b B · Rev +27.5% A- · D/E 0.23 B · P/E 21.3x B+ · PEG 0.77 A-
Why now. Oscar Health’s +27.5% revenue growth in FY YoY, powered by its Oscar platform that streamlines enrollment and engagement for individuals and small groups, is the engine that will keep compounding earnings; the 34.3% ROE shows the business can reinvest profit at a premium rate, while a 0.6 PS ratio signals the market is still pricing the growth modestly. The thesis rests on the platform’s ability to lock in new members and expand its reinsurance and brokerage services, delivering a self‑reinforcing growth loop.
Moat. The Oscar platform creates a sticky digital health ecosystem for members and brokers, embedding enrollment, care navigation and data analytics in a single workflow that rivals can’t replicate quickly. This integration yields pricing power reflected in a 34.3% ROE, as insurers and employers pay a premium for the seamless experience and data insights that reduce churn and drive higher margin reinsurance contracts.
Risk. A bear sees the lofty 2.38 beta and a 21.3 P/E as evidence that the market is pricing in unsustainable growth; if revenue growth stalls below the current 27.5% pace, the high valuation and modest 3.6% profit margin will compress, and a beta‑driven market correction could knock the stock toward its 52‑week low of $10.69. The key signal would be a quarter of sub‑20% revenue growth, confirming the upside is already priced in.
Horizon. 1-3 yr $28.20 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $41.29 at ~8% CAGR — compounding case rests on the competitive position widening. 10 yr $61.25 if current growth sustains into durable earnings power.
6. INTU — Intuit Inc. · score 87.8
Software - Application · price $334.43 · 1Y $454.65 · 5Y $665.66 · 10Y $987.46
FCF $7.8b B+ · Rev +15.1% B+ · D/E 0.33 B · P/E 20.4x B+ · PEG 0.84 B+
Why now. Intuit’s QuickBooks Online platform is the engine of a 15.1% YoY revenue growth, powered by a 21.9% profit margin and a 22.2% ROE, delivering a high‑quality growth story that our model rewards with an 87.8/100 Quality‑Growth score. The strongest pillar—Growth—means the business can keep compounding cash flow as SMBs stay locked into the QuickBooks‑Mailchimp ecosystem. The thesis hinges on that ecosystem’s ability to keep expanding the addressable market while the reverse‑DCF shows the market already assumes a -3% FCF growth, making the stock dramatically undervalued relative to its real growth trajectory.
Moat. QuickBooks and Mailchimp create a sticky, cross‑selling loop for small‑ and mid‑market businesses, locking them into integrated accounting, payroll, payments and marketing tools that are costly to replace. This lock‑in fuels the 22.2% ROE, as Intuit can price premium services on a platform where switching costs are high and competitors lack a comparable end‑to‑end suite.
Risk. The market is pricing Intuit at a forward P/E of 20.4, far above the sector average, while the reverse‑DCF implies a -3% annual FCF growth—an unrealistic pessimism that could materialize if SMB spending slows or if a rival launches a comparable all‑in‑one SaaS stack. A sustained deceleration in revenue growth below the current 15.1% would validate the high multiple and trigger a sell‑off, breaking the bull case.
Horizon. 1-3 yr $454.65 (analyst consensus (n=33)) — fundamentals + valuation re-rating. 5 yr $665.66 at ~15% 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 $164.92 · 1Y $213.13 · 5Y $312.04 · 10Y $462.89
FCF $870m C+ · Rev +34.4% A · D/E 0.12 B+ · P/E 24.1x B+ · PEG 0.48 A
Why now. NBIX is poised to compound earnings off its market‑leading neuro‑psychiatric franchise, anchored by INGREZZA’s expanding indication set and Orilissa’s strong uptake in endometriosis. The company delivered 34.4% revenue growth YoY, a 20.9% profit margin and a PEG of 0.48, all of which sit squarely under our Bull Rankings model’s perfect Growth pillar (100) and drive a 10% free‑cash‑flow growth assumption baked into today’s price. The thesis rests on the persistence of high‑margin specialty sales that continue to outpace the broader pharma baseline.
Moat. NBIX’s moat stems from its FDA‑approved, patent‑protected products that treat niche, high‑unmet‑need disorders – INGREZZA for tardive dyskinesia and Huntington’s chorea, and Orilissa for endometriosis – giving it pricing power and low‑switching costs among neurologists and gynecologists. The 19.1% ROE reflects that pricing advantage and a capital‑light model (debt‑to‑equity 0.12), allowing the firm to reinvest cash into pipeline candidates without eroding shareholder equity.
Risk. The bear case hinges on the market pricing in aggressive growth, particularly as our Bull Rankings model's overall Quality-growth score of 87.5/100 is tempered by its weakest pillar, Quality, scoring 81. While the 10% FCF CAGR over ten years implied by today's price is far below the current 34.4% revenue expansion, our model also flags 'Diluting shareholders (caution)'. This, combined with a P/E of 24.1, suggests the stock commands a premium despite some underlying quality concerns. Any slowdown in new‑product uptake or competitive entry, or continued shareholder dilution, would confirm the over‑optimism and trigger a sell‑off.
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. TTD — The Trade Desk, Inc. · score 86.4
Advertising Agencies · price $13.39 · 1Y $14.62 · 5Y $21.41 · 10Y $31.75
FCF $863m C+ · Rev +11.6% B · D/E 0.17 A- · P/E 15.9x B+ · PEG 0.66 A-
Why now. The Trade Desk’s platform for programmatic CTV and video ads is the engine of compounding, delivering 11.6% YoY revenue growth, 13.6% profit margin and $863 m of free cash flow while trading at a modest PE of 15.9x. With advertisers shifting spend to addressable, cross‑device inventory, the company can keep scaling its high‑margin ecosystem, and the entire thesis hinges on the persistence of that CTV ad spend tailwind.
Moat. TTD locks agencies and brands into a unified, data‑rich buying stack that spans CTV, display, audio and DOOH, creating high switching costs because campaigns rely on its real‑time optimization engine and proprietary audience data. This platform advantage fuels a ROE of 15.8%, reflecting pricing power from being the go‑to technology for premium digital inventory.
Risk. The market is pricing in a reverse‑DCF implied free‑cash‑flow contraction of –13% annually, far below the actual 11.6% revenue growth, suggesting investors fear a slowdown; a slip back toward the 52‑week low of $12.83 would validate that pessimism, especially if margin pressure or a rise in debt‑to‑equity above 0.17 erodes profitability.
Horizon. 1-3 yr $14.62 (analyst consensus (n=30)) — fundamentals + valuation re-rating. 5 yr $21.41 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $31.75 if current growth sustains into durable earnings power.
9. DOCS — Doximity, Inc. · score 86
Health Information Services · price $25.63 · 1Y $29.41 · 5Y $43.06 · 10Y $63.88
FCF $306m C · Rev +11.2% B · D/E 0.01 A · P/E 30.5x B · PEG 0.59 A-
Why now. DOCS’s growth engine is its AI‑powered Ask assistant, which embeds evidence‑based guidance directly into physicians’ daily workflow, fueling a 11.2% YoY revenue rise and a 25.5% profit margin that fuels a free‑cash‑flow of $306 m. Our Bull Rankings model rates the stock 86/100 on Quality‑Growth, with Growth as the strongest pillar, underscoring the durability of this compounding engine. The market already prices in a 7% perpetual FCF growth via the reverse‑DCF, but the Ask platform and expanding sponsored content pipeline should sustain 11.2% top‑line growth, making the current price a modest premium to the true upside.
Moat. The Ask AI assistant creates a sticky, HIPAA‑compliant workflow layer that medical professionals cannot replace without disrupting patient care, locking in its extensive network of users. This high‑touch integration translates into pricing power, evident in an ROE of 18.2%, far above the sector average, and a near‑zero debt‑to‑equity of 0.01, giving DOCS the financial flexibility to reinvest in product enhancements.
Risk. The bull thesis hinges on continued adoption of AI tools, but a slowdown in physician engagement or a rival platform offering a cheaper, open‑source alternative could compress the current PE of 30.5x and erode the 25.5% margin. A breach of HIPAA compliance or a regulatory clampdown on sponsored content would also hit revenue growth, and a sustained dip below the 11.2% growth rate would validate the model’s weak Value pillar and trigger a price correction toward the lower end of the analyst range.
Horizon. 1-3 yr $29.41 (analyst consensus (n=17)) — fundamentals + valuation re-rating. 5 yr $43.06 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $63.88 if current growth sustains into durable earnings power.
10. GDDY — GoDaddy Inc. · score 85.7
Software - Infrastructure · price $91.49 · 1Y $104.80 · 5Y $132.31 · 10Y $169.68
FCF $1.7b C+ · Rev +7.4% B · D/E n/a · P/E 13.6x A · PEG 0.68 A-
Why now. Software - Infrastructure · market cap $11.6b. Down 39% from 52-week high of $150.47 — deep drawdown territory. PEG 0.68 — paying under fair value for the growth rate. 15 sell-side analysts rate this a Buy with a mean 1-yr target of $104.80 (implying +15% 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. FCF converts 187% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined. Software economics — recurring revenue, embedded customer workflows, and high gross margin all compound the moat once a base account is won. Switching costs are the lever.
Risk. Down 39% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. 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 $104.80 (analyst consensus (n=15)) — multiple re-rating thesis requires a catalyst. 5 yr $132.31 at ~8% CAGR — dividend + buyback compounding. 10 yr $169.68 if the moat survives secular pressure.
11. NVDA — NVIDIA Corporation · score 85.7
Semiconductors · price $217.55 · 1Y $302.83 · 5Y $443.37 · 10Y $657.71
FCF $119.1b A · Rev +70.7% A · D/E 0.07 B+ · P/E 33.3x B · PEG 0.62 A-
Why now. Semiconductors · market cap $5.3T. 8% off the 52-week high of $236.54. Revenue growing +71% — in hypergrowth territory. PEG 0.62 — paying under fair value for the growth rate. 58 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $302.83 (implying +39% upside).
Moat. Net margin 63% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 82% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $5.3T 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. Beta 2.21 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 33x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. P/S 20.8x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
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.
12. ANIP — ANI Pharmaceuticals, Inc. · score 85.6
Drug Manufacturers - Specialty & Generic · price $75.76 · 1Y $108.38 · 5Y $136.82 · 10Y $175.47
FCF $173m C · Rev +30.9% A · D/E 1.05 C · P/E 16.5x A- · PEG 0.38 A
Why now. Drug Manufacturers - Specialty & Generic · market cap $1.7b. Down 24% from 52-week high of $99.50 — deep drawdown territory. Revenue growing +31% — in hypergrowth territory. PEG 0.38 — paying under fair value for the growth rate. 8 sell-side analysts rate this a Buy with a mean 1-yr target of $108.38 (implying +43% upside).
Moat. ROE 18% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 160% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined. Pharma moat is patent runway + pipeline depth — a single approved molecule funds the next generation of bets. Late-stage trials carry binary readouts that swing valuation 30%+.
Risk. Trial-readout binary — late-stage clinical trials carry approve/reject outcomes that swing valuation 30%+; the equity is effectively a portfolio of these binary events, not a steady cash-flow business.
Horizon. 1-3 yr $108.38 (analyst consensus (n=8)) — multiple re-rating thesis requires a catalyst. 5 yr $136.82 at ~13% CAGR — dividend + buyback compounding. 10 yr $175.47 if the moat survives secular pressure.
13. LRN — Stride, Inc. · score 84.5
Education & Training Services · price $80.23 · 1Y $86.65 · 5Y $109.39 · 10Y $140.29
FCF $433m C · Rev +4.7% C+ · D/E 0.33 A- · P/E 11.2x A · PEG 0.48 A
Why now. Education & Training Services · market cap $3.3b. Down 53% from 52-week high of $171.17 — deep drawdown territory. PEG 0.48 — paying under fair value for the growth rate.
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 21% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 128% 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.
Horizon. 1-3 yr $86.65 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $109.39 at ~6% CAGR — dividend + buyback compounding. 10 yr $140.29 if the moat survives secular pressure.
14. EXLS — ExlService Holdings, Inc. · score 83.9
Information Technology Services · price $35.07 · 1Y $44.38 · 5Y $64.97 · 10Y $96.38
FCF $297m C · Rev +13.4% B+ · D/E 0.57 C+ · P/E 22.2x B+ · PEG 1.03 B+
Why now. Information Technology Services · market cap $5.4b. Down 22% from 52-week high of $45.08 — deep drawdown territory. Revenue growing +13%, comfortably above the S&P median. 8 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $44.38 (implying +27% upside).
Moat. ROE 32% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 118% 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 $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.
15. RMD — ResMed Inc. · score 83.5
Medical Instruments & Supplies · price $220.05 · 1Y $247.20 · 5Y $361.93 · 10Y $536.89
FCF $1.8b C+ · Rev +10.3% B · D/E 0.13 B+ · P/E 21.1x B+ · PEG 1.27 B
Why now. Medical Instruments & Supplies · market cap $31.9b. Down 25% 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 $247.20 (implying +12% 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 $247.20 (analyst consensus (n=15)) — fundamentals + valuation re-rating. 5 yr $361.93 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $536.89 if current growth sustains into durable earnings power.
16. EPAM — EPAM Systems, Inc. · score 83.3
Information Technology Services · price $97.37 · 1Y $124.12 · 5Y $156.70 · 10Y $200.96
FCF $483m C · Rev +10.8% B · D/E 0.04 A- · P/E 13.2x A · PEG 0.50 A
Why now. Information Technology Services · market cap $5.0b. Down 56% from 52-week high of $222.53 — deep drawdown territory. Revenue growing +11%, comfortably above the S&P median. PEG 0.50 — paying under fair value for the growth rate. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $124.12 (implying +27% 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 56% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon. 1-3 yr $124.12 (analyst consensus (n=17)) — multiple re-rating thesis requires a catalyst. 5 yr $156.70 at ~10% CAGR — dividend + buyback compounding. 10 yr $200.96 if the moat survives secular pressure.
17. APP — AppLovin Corporation · score 82.2
Advertising Agencies · price $339.00 · 1Y $560.83 · 5Y $708.04 · 10Y $908.04
FCF $4.5b B · Rev +60.6% A · D/E 1.11 C+ · P/E 26.1x C+ · PEG 0.96 B+
Why now. Advertising Agencies · market cap $113.9b. Down 55% from 52-week high of $745.61 — deep drawdown territory. Revenue growing +61% — in hypergrowth territory. PEG 0.96 — paying under fair value for the growth rate. 30 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $560.83 (implying +65% 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. $113.9b 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 16.7x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon. 1-3 yr $560.83 (analyst consensus (n=30)) — multiple re-rating thesis requires a catalyst. 5 yr $708.04 at ~16% CAGR — dividend + buyback compounding. 10 yr $908.04 if the moat survives secular pressure.
18. CPAY — Corpay, Inc. · score 80.7
Software - Infrastructure · price $400.88 · 1Y $446.71 · 5Y $563.97 · 10Y $723.27
FCF $1.6b C+ · Rev +20.4% A- · D/E 2.72 D · P/E 24.4x B+ · PEG 0.89 B+
Why now. Software - Infrastructure · market cap $26.2b. Trading near 52-week high of $405.95 — momentum setup, limited technical margin of safety. Revenue growing +20%, comfortably above the S&P median. PEG 0.89 — paying under fair value for the growth rate. 14 sell-side analysts rate this a Buy with a mean 1-yr target of $446.71 (implying +11% upside).
Moat. Net margin 23% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 32% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 144% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. D/E 2.72 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Trading within 1% 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 $446.71 (analyst consensus (n=14)) — multiple re-rating thesis requires a catalyst. 5 yr $563.97 at ~7% CAGR — dividend + buyback compounding. 10 yr $723.27 if the moat survives secular pressure.
19. GMED — Globus Medical, Inc. · score 80.7
Medical Devices · price $86.15 · 1Y $103.23 · 5Y $151.14 · 10Y $224.21
FCF $756m C+ · Rev +19.7% B+ · D/E 0.02 A- · P/E 22.0x B+ · PEG 1.49 B
Why now. Medical Devices · market cap $11.7b. 15% off the 52-week high of $101.40. Revenue growing +20%, comfortably above the S&P median. 13 sell-side analysts rate this a Buy with a mean 1-yr target of $103.23 (implying +20% 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 $103.23 (analyst consensus (n=13)) — fundamentals + valuation re-rating. 5 yr $151.14 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $224.21 if current growth sustains into durable earnings power.
20. ACN — Accenture plc · score 79.7
Information Technology Services · price $178.25 · 1Y $178.89 · 5Y $225.85 · 10Y $289.64
FCF $12.6b A- · Rev +6.7% C+ · D/E 0.25 B · P/E 14.2x A- · PEG 1.28 B
Why now. Information Technology Services · market cap $109.1b. Down 39% 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 +0% 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. $109.1b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Down 39% 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 ~5% 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 $97.44 · 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 1.19 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 +26% 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.
22. META — Meta Platforms, Inc. · score 79.7
Internet Content & Information · price $594.92 · 1Y $756.95 · 5Y $955.63 · 10Y $1,226
FCF $48.3b A · Rev +26.2% A- · D/E 0.43 B+ · P/E 22.4x B · PEG 0.88 B+
Why now. Internet Content & Information · market cap $1.5T. Down 25% from 52-week high of $796.25 — deep drawdown territory. Revenue growing +26% — in hypergrowth territory. PEG 0.88 — 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 +27% 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.
23. DXCM — DexCom, Inc. · score 79.4
Medical Devices · price $87.65 · 1Y $93.44 · 5Y $136.81 · 10Y $202.94
FCF $1.4b C+ · Rev +15.5% B+ · D/E 0.53 B · P/E 34.6x C+ · PEG 1.60 C+
Why now. Medical Devices · market cap $33.1b. Trading near 52-week high of $88.17 — 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 35x 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 78.7
Internet Retail · price $1824.34 · 1Y $2,234 · 5Y $3,270 · 10Y $4,851
FCF $12.4b A- · Rev +41.2% A · D/E 1.69 C+ · P/E 49.6x D · PEG 1.12 B+
Why now. Internet Retail · market cap $92.5b. 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 $2,234 (implying +22% 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. $92.5b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Trailing P/E 50x 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 $2,234 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $3,270 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $4,851 if current growth sustains into durable earnings power.
25. WMG — Warner Music Group Corp. · score 77.8
Entertainment · price $26.41 · 1Y $36.88 · 5Y $46.56 · 10Y $59.72
FCF $836m C+ · Rev +12.9% B+ · D/E 4.53 D · P/E 21.1x 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 $36.88 (implying +40% 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 4.53 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer.
Horizon. 1-3 yr $36.88 (analyst consensus (n=17)) — multiple re-rating thesis requires a catalyst. 5 yr $46.56 at ~12% CAGR — dividend + buyback compounding. 10 yr $59.72 if the moat survives secular pressure.
26. VRT — Vertiv Holdings Co · score 77
Electrical Equipment & Parts · price $270.10 · 1Y $338.15 · 5Y $495.09 · 10Y $734.43
FCF $2.9b B · Rev +26.2% A- · D/E 0.70 B · P/E 61.2x D · PEG 1.28 B
Why now. Electrical Equipment & Parts · market cap $104.0b. 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 $338.15 (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 61.2x 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 $338.15 (analyst consensus (n=26)) — fundamentals + valuation re-rating. 5 yr $495.09 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $734.43 if current growth sustains into durable earnings power.
27. EME — EMCOR Group, Inc. · score 76.6
Engineering & Construction · price $809.33 · 1Y $1,044 · 5Y $1,318 · 10Y $1,691
FCF $1.2b C+ · Rev +18.9% B+ · D/E 0.13 A- · P/E 25.2x 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.
28. NFLX — Netflix, Inc. · score 75.5
Entertainment · price $76.29 · 1Y $94.04 · 5Y $137.68 · 10Y $204.24
FCF $11.2b A- · Rev +16.0% B+ · D/E 0.55 B · P/E 24.0x B · PEG 1.66 C+
Why now. Entertainment · market cap $317.7b. Down 40% 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 $94.04 (implying +23% 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. $317.7b market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk. Down 40% 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 $94.04 (analyst consensus (n=45)) — fundamentals + valuation re-rating. 5 yr $137.68 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $204.24 if current growth sustains into durable earnings power.
29. CCK — Crown Holdings, Inc. · score 75.3
Packaging & Containers · price $120.31 · 1Y $136.57 · 5Y $172.42 · 10Y $221.12
FCF $1.2b C+ · Rev +10.3% B · D/E 1.86 C+ · P/E 17.3x B+ · PEG 0.64 A-
Why now. Packaging & Containers · market cap $13.1b. Trading near 52-week high of $122.91 — 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 publish a mean 1-yr target of $136.57 (implying +14% upside).
Moat. ROE 27% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 153% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Trading within 2% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction.
Horizon. 1-3 yr $136.57 (analyst consensus (n=14)) — multiple re-rating thesis requires a catalyst. 5 yr $172.42 at ~7% CAGR — dividend + buyback compounding. 10 yr $221.12 if the moat survives secular pressure.
30. VST — Vistra Corp. · score 75
Utilities - Independent Power Producers · price $142.87 · 1Y $222.11 · 5Y $280.40 · 10Y $359.61
FCF $2.3b B · Rev +18.6% B+ · D/E 3.67 D · P/E 24.0x C · PEG 0.40 A
Why now. Utilities - Independent Power Producers · market cap $48.2b. Down 35% from 52-week high of $219.82 — deep drawdown territory. Revenue growing +19%, comfortably above the S&P median. PEG 0.40 — paying under fair value for the growth rate. 19 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $222.11 (implying +55% upside).
Moat. ROE 40% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 102% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. D/E 3.67 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Down 35% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 1.43 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.
Horizon. 1-3 yr $222.11 (analyst consensus (n=19)) — multiple re-rating thesis requires a catalyst. 5 yr $280.40 at ~14% CAGR — dividend + buyback compounding. 10 yr $359.61 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.