This refresh
Data-driven refresh August 11, 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); 1,782 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 90.4
Biotechnology · price $39.52 · 1Y $46.10 · 5Y $67.50 · 10Y $100.12
FCF $355m C · Rev +24.3% A- · D/E 0.16 B+ · P/E 12.8x A- · PEG 0.59 A-
Why now. The bull case hinges on WAKIX’s dominant position in the U.S. narcolepsy market, where its novel mechanism drives a premium price and expanding patient base. Revenue is surging 24.3% YoY while profit margins sit at a healthy 18.9%, delivering a free‑cash‑flow runway of $355 m and a low debt‑to‑equity of 0.16, all of which underpin a compounding earnings story that our Bull Rankings model captures with a Growth pillar of 100. The thesis rests on continued uptake of WAKIX and pipeline read‑outs that keep the 10%+ revenue growth trajectory alive.
Moat. WAKIX’s patented pitolisant chemistry creates a high barrier to entry, and its FDA‑approved status for excessive daytime sleepiness locks in neurologists and sleep‑disorder clinics as repeat buyers, generating sticky demand. The 18.1% ROE reflects pricing power derived from being the sole approved oral therapy in this niche, limiting competitive encroachment and sustaining margin expansion.
Risk. The bear case centers on the looming Phase 3 readout for Pitolisant in Prader‑Willi Syndrome; a miss would stall pipeline momentum and pressure the premium pricing of WAKIX, while the current P/E of 12.8, though modest, already embeds optimism that could be ripped out if growth decelerates. A widening of the P/E above 15 or a margin dip below 15% would confirm the downside and erode the valuation cushion.
Horizon. 1-3 yr $46.10 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $67.50 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $100.12 if current growth sustains into durable earnings power.
2. ADBE — Adobe Inc. · score 89.5
Software - Application · price $263.71 · 1Y $269.61 · 5Y $394.73 · 10Y $585.56
FCF $10.3b A- · Rev +11.5% B · D/E 0.61 C+ · P/E 15.1x A- · PEG 0.66 A-
Why now. Adobe's entrenched position in content creation and customer experience, driven by its Digital Media and Digital Experience segments, makes it a high-quality compounder trading at a discount. With a robust 28.7% profit margin and generating $10.3B in free cash flow, the company is fundamentally strong, yet the current price implies only ~1%/yr free-cash-flow growth for the next decade, according to our model's reverse DCF. This significant disconnect from its 11.5% FY YoY revenue growth suggests substantial pessimism is already priced in, setting the stage for outperformance as actual growth exceeds low expectations. The crux is the market underestimating the durability of its core franchises.
Moat. Adobe's formidable moat stems from the mission-critical nature of its Digital Media segment's creative tools for professionals like photographers, video editors, and graphic designers, creating high switching costs. The company's exceptional 62.8% Return on Equity is a direct result of this entrenched ecosystem and pricing power, where its integrated platforms become indispensable for content creation and customer experience management. Competitors struggle to replicate this deep integration and user familiarity across such a broad professional user base.
Risk. Skeptics argue that Adobe's growth, while steady at 11.5% FY YoY revenue growth, faces increasing headwinds from emerging AI-native creative tools and open-source alternatives, potentially eroding its dominance in the Digital Media segment. Our model's weakest pillar being Growth (87/100) underscores this concern, suggesting the company's expansion pace may not justify its premium. A sustained deceleration in new subscriber additions for its creative cloud offerings or a significant drop in its 28.7% profit margin would confirm 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.
3. DLO — DLocal Limited · score 89.5
Software - Infrastructure · price $14.11 · 1Y $18.25 · 5Y $26.72 · 10Y $39.64
FCF $413m C · Rev +46.6% A · D/E 0.20 B · P/E 22.0x B+ · PEG 0.47 A
Why now. DLocal’s pay‑in platform for global merchants is exploding, delivering 46.6% YoY revenue growth, a rock‑solid 18% profit margin and a staggering 34.6% ROE—the exact levers that power our model’s 100‑point Growth pillar and drive a 89.5/100 Quality‑Growth score. The combination of cross‑border card acceptance, bank transfers and hundreds of APMs creates a self‑reinforcing network that will keep compounding earnings as emerging‑market e‑commerce matures. The thesis hinges on sustaining this high‑growth engine.
Moat. The moat lives in DLocal’s end‑to‑end payment stack for platforms and merchants, which embeds local payment method integrations that are costly and time‑consuming for rivals to replicate. This technical integration lock‑in, coupled with a 34.6% ROE generated from pricing power in underserved markets, yields a durable cash‑flow advantage that protects margins and limits churn.
Risk. The bear case centers on the lofty valuation: a forward P/E of 22 implies the market already expects continued double‑digit growth, yet any slowdown from regulatory tightening on cross‑border payments or a dip in the 46.6% revenue growth rate would expose the thin margin cushion. A rise in debt‑to‑equity above 0.2 or a widening beta would confirm the risk and force the stock back toward its 52‑week low.
Horizon. 1-3 yr $18.25 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $26.72 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $39.64 if current growth sustains into durable earnings power.
4. PGY — Pagaya Technologies Ltd. · score 88.6
Software - Infrastructure · price $21.20 · 1Y $28.80 · 5Y $42.17 · 10Y $62.55
FCF $252m C · Rev +25.6% A- · D/E 1.34 C · P/E 15.0x A- · PEG 0.04 A
Why now. Pagaya Technologies is a compelling growth story, leveraging its proprietary AI-powered technology to expand financial access through products like Decline Monetization and Dual Look. Our model's Growth pillar score of 100/100 confirms its exceptional trajectory, underscored by a robust 25.6% FY YoY revenue growth and an incredibly low 0.04 PEG ratio. The crux is Pagaya's ability to compound its network effect, continuously improving its AI models with more data from partners to approve customers they would otherwise decline, driving sustained top-line expansion.
Moat. Pagaya's moat is built on its proprietary AI-powered technology and the network effect inherent in its Decline Monetization product. As more partners send rejected loan applications to Pagaya's network, its data science models become more robust, enhancing approval rates and creating a self-reinforcing loop that is difficult for competitors to replicate. This deep integration and continuous improvement in its core technology contribute to its strong profitability, evidenced by a 19.5% ROE, reflecting the value its platform delivers to financial services partners and confirming our model's signal of "Durable high returns."
Risk. Skeptics would argue that Pagaya's high beta of 5.37 signals extreme sensitivity to market cycles, especially given its reliance on the health of the financial services sector and consumer lending. Our model's weakest pillar, Quality (70/100), coupled with a "Diluting shareholders" caution signal, suggests potential structural weaknesses or management decisions that could erode long-term value. Furthermore, the market's deep pessimism, reflected in our reverse DCF implying a ~-14%/yr free-cash-flow growth sustained for 10 years despite strong revenue growth, indicates a significant concern about the sustainability of its current $252m FCF, which would be confirmed by any sustained contraction in its partner network or a material slowdown in its core Decline Monetization product.
Horizon. 1-3 yr $28.80 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $42.17 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $62.55 if current growth sustains into durable earnings power.
5. OSCR — Oscar Health, Inc. · score 88.1
Healthcare Plans · price $27.97 · 1Y $29.00 · 5Y $42.46 · 10Y $62.98
FCF $4.4b B · Rev +27.5% A- · D/E 0.23 B · P/E 21.5x B+ · PEG 0.78 A-
Why now. Oscar Health’s +27.5% revenue growth is powered by its Oscar platform that digitizes enrollment and engagement for individuals, families and small groups, creating a self‑reinforcing loop of data‑driven cost control and member acquisition. Coupled with a stellar 34.3% ROE and a massive $4.4 B free‑cash‑flow run‑rate, the business compounds earnings faster than most peers, making the growth pillar of our model (100) the decisive edge. The thesis hinges on the platform’s ability to keep scaling while preserving margins.
Moat. The Oscar platform locks in members and brokers through a seamless enrollment and recommendation engine that is hard to duplicate without comparable data assets and tech integration, giving Oscar pricing power that fuels its 34.3% ROE. Re‑insurance products and the Campaign Builder further embed the company in provider‑payor workflows, creating switching costs for both consumers and partners.
Risk. A 2.38 beta and a 21.5× P/E signal that the market already prices in aggressive growth expectations; any slowdown from the current 27.5% revenue pace or margin compression below the 3.6% profit margin would force a sharp re‑rating. The bear case crystallizes if the platform’s adoption stalls, driving the stock back toward its 52‑week low of $10.69.
Horizon. 1-3 yr $29.00 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $42.46 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $62.98 if current growth sustains into durable earnings power.
6. NBIX — Neurocrine Biosciences, Inc. · score 87.5
Drug Manufacturers - Specialty & Generic · price $161.94 · 1Y $213.13 · 5Y $312.04 · 10Y $462.89
FCF $870m C+ · Rev +34.4% A · D/E 0.12 B+ · P/E 23.7x B+ · PEG 0.49 A
Why now. Neurocrine’s INGREZZA franchise is the single best compounder in neurology: revenue growth of +34.4% with a 20.9% profit margin means every new dollar of sales drops straight to the bottom line. Orilissa and Oriahnn are expanding into underserved markets (endometriosis and uterine fibroids) where Neurocrine owns the only non-surgical oral options, and the TTM free cash flow of $870m funds the next wave of pipeline bets without dilution. The crux: INGREZZA’s dominance in tardive dyskinesia and Huntington’s chorea is cemented by the lack of generics through 2033, locking in pricing power for the next decade.
Moat. Neurocrine’s edge is built on patent cliffs: INGREZZA’s composition-of-matter patent expires in 2033, giving it a near‑monopoly in its indication with no biosimilar threat. The 19.1% ROE is driven by pricing power in orphan neurology — a segment where payers accept premiums for therapies with no alternatives, and Neurocrine’s direct-to-specialist sales force (300+ reps) locks in prescription share before competitors can react. Switching costs are high: patients stabilized on INGREZZA rarely discontinue due to the risk of irreversible tardive dyskinesia progression.
Risk. The bull case assumes INGREZZA’s growth persists, but the P/E of 23.7x is rich for a name where a single drug drives the majority of revenue. A single negative label update or payer pushback on reimbursement could shave 20% off the stock overnight — and the D/E of 0.12 is creeping up as Neurocrine funds pipeline bets with debt, not cash. The bear signal: INGREZZA’s revenue growth decelerates below 15% YoY for two consecutive quarters, breaking the compounder thesis.
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.
7. INTU — Intuit Inc. · score 87.4
Software - Application · price $336.44 · 1Y $455.38 · 5Y $666.72 · 10Y $989.04
FCF $7.8b B+ · Rev +15.1% B+ · D/E 0.33 B · P/E 20.5x B+ · PEG 0.87 B+
Why now. Intuit earns a strong Quality-growth score of 87.4/100 from our model, with its Growth pillar scoring 95/100 due to a robust ecosystem of financial management and marketing solutions. This strength, particularly in QuickBooks services for small and mid-market businesses and Mailchimp, drives persistent revenue expansion, underpinned by a 15.1% FY YoY revenue growth and a strong 21.9% profit margin, enabling the company to generate $7.8B in free cash flow. The thesis rests on Intuit's ability to continuously expand its integrated offerings, deepening customer engagement and increasing recurring revenue streams.
Moat. Intuit benefits from significant switching costs and network effects embedded in its core offerings. QuickBooks, providing essential financial management, payroll, and payment processing, creates a sticky ecosystem for small and mid-market businesses that is difficult to dislodge once integrated. This deep integration and mission-critical nature of its products contribute to Intuit's impressive 22.2% Return on Equity, reflecting strong pricing power and efficient capital allocation within its category-leading platforms.
Risk. Despite its growth, Intuit faces a valuation challenge, as indicated by our model's weakest pillar, Value, scoring 82/100. The Bull Rankings model's reverse DCF analysis implies that today's price of $336.44 factors in a sustained free-cash-flow decline of approximately -3% per year for the next decade, a stark contrast to its reported 15.1% revenue growth. This suggests significant market skepticism about its long-term growth trajectory or potential margin compression, which would be confirmed if the company fails to sustain its current revenue growth rates or if competitive pressures from alternative financial and marketing solutions intensify.
Horizon. 1-3 yr $455.38 (analyst consensus (n=33)) — fundamentals + valuation re-rating. 5 yr $666.72 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $989.04 if current growth sustains into durable earnings power.
8. NVDA — NVIDIA Corporation · score 85.9
Semiconductors · price $217.50 · 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 0.60 A-
Why now. NVIDIA’s dominance in data‑center AI infrastructure fuels a compounding engine: the Compute & Networking segment is powering the AI surge, delivering 70.7% YoY revenue growth, 63% profit margin and an eye‑popping 81.7% ROE. Our Bull Rankings model rates its Growth pillar at a perfect 100, driving an overall Quality‑Growth score of 85.9, which underscores the durability of this runway. The thesis rests on continued AI spend that keeps the data‑center platform locked‑in, compounding earnings at a rate that outpaces peers.
Moat. The moat lives in NVIDIA’s AI‑accelerated computing stack that couples industry‑leading GPUs with a software ecosystem, locking enterprise customers into a high‑switching‑cost platform across data‑center, gaming and automotive workloads. This pricing power fuels the 81.7% ROE, as customers pay premium for performance that rivals cannot replicate without massive R&D spend.
Risk. The stock trades at a lofty PE of 33.3 and a beta of 2.21, meaning any slowdown in AI capital spending or a broader market pull‑back would hit valuation hard. Our model flags Value as the weakest pillar (72), indicating the price already embeds a 50% annual FCF growth assumption for the next decade—far above realistic long‑term rates. A miss on AI demand or margin compression would confirm the bear case and topple the upside.
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 85.8
Software - Infrastructure · price $90.74 · 1Y $104.80 · 5Y $153.44 · 10Y $227.61
FCF $1.7b C+ · Rev +7.4% B · D/E n/a · P/E 13.5x A · PEG 0.68 A-
Why now. GoDaddy presents a compelling growth opportunity, with our model assigning it a robust 85.8/100 quality-growth score, driven by its exceptional Quality pillar at 95. The company's cloud-based Applications and Commerce segment, including products like Websites + Marketing, generates significant free cash flow of $1.7b against an $11.5b market cap, yet trades at a modest 13.5 P/E (TTM). This strong cash generation, coupled with management's active stock buyback program, suggests a high-quality compounder whose market valuation implies an unsustainable -17%/yr FCF growth, a clear disconnect from its 7.4% revenue growth.
Moat. GoDaddy's durable edge stems from its comprehensive suite of integrated cloud-based products, particularly within the Applications and Commerce segment, which offers essential tools like Websites + Marketing and Managed WordPress. These offerings create significant switching costs for small businesses that rely on GoDaddy for their entire online presence, from domain registration to website building and marketing. This stickiness underpins the company's strong Quality pillar score of 95 in our model, reflecting a robust and resilient business model that consistently generates high free cash flow.
Risk. The primary bear case centers on GoDaddy's decelerating top-line expansion within a highly competitive Software - Infrastructure sector, reflected in our model's weakest pillar, Growth, at a modest 76. Despite its robust free cash flow, the company's revenue growth of 7.4% (FY YoY) is not stellar for a growth classification, and the significant drop from its 52-week high of $150.47 signals investor concerns about future growth trajectory. A sustained decline in new customer acquisition or average revenue per user within its Core Platform segment, leading to further revenue growth deceleration, would confirm the bear thesis.
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. DOCS — Doximity, Inc. · score 85.7
Health Information Services · price $26.11 · 1Y $29.41 · 5Y $43.06 · 10Y $63.88
FCF $306m C · Rev +11.2% B · D/E 0.01 A · P/E 31.1x B · PEG 0.59 A-
Why now. Health Information Services · market cap $4.7b. Down 66% from 52-week high of $76.51 — deep drawdown territory. Revenue growing +11%, comfortably above the S&P median. PEG 0.59 — paying under fair value for the growth rate. 17 sell-side analysts rate this a Hold with a mean 1-yr target of $29.41 (implying +13% 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 18% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 183% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 66% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trailing P/E 31x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
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.
11. HALO — Halozyme Therapeutics, Inc. · score 85.6
Biotechnology · price $102.62 · 1Y $99.56 · 5Y $145.76 · 10Y $216.22
FCF $806m C+ · Rev +41.2% A · D/E n/a · P/E 30.1x B · PEG 0.80 A-
Why now. Biotechnology · market cap $11.6b. Trading near 52-week high of $104.78 — momentum setup, limited technical margin of safety. Revenue growing +41% — in hypergrowth territory. PEG 0.80 — paying under fair value for the growth rate. 9 sell-side analysts rate this a Buy with a mean 1-yr target of $99.56 (implying -3% 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. FCF converts 195% 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. Trading within 2% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Trailing P/E 30x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. 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 $99.56 (analyst consensus (n=9)) — fundamentals + valuation re-rating. 5 yr $145.76 at ~7% CAGR — compounding case rests on the competitive position widening. 10 yr $216.22 if current growth sustains into durable earnings power.
12. LRN — Stride, Inc. · score 84.5
Education & Training Services · price $79.09 · 1Y $85.42 · 5Y $107.84 · 10Y $138.30
FCF $433m C · Rev +4.7% C+ · D/E 0.33 A- · P/E 11.1x A · PEG 0.48 A
Why now. Education & Training Services · market cap $3.3b. Down 54% 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 54% 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 $85.42 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $107.84 at ~6% CAGR — dividend + buyback compounding. 10 yr $138.30 if the moat survives secular pressure.
13. EXLS — ExlService Holdings, Inc. · score 83.5
Information Technology Services · price $34.90 · 1Y $44.38 · 5Y $64.97 · 10Y $96.38
FCF $297m C · Rev +13.4% B+ · D/E 0.57 C+ · P/E 22.1x B+ · PEG 1.04 B+
Why now. Information Technology Services · market cap $5.3b. Down 23% 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.
14. EPAM — EPAM Systems, Inc. · score 83.3
Information Technology Services · price $99.90 · 1Y $122.82 · 5Y $155.06 · 10Y $198.86
FCF $483m C · Rev +10.8% B · D/E 0.04 A- · P/E 13.6x A · PEG 0.52 A-
Why now. Information Technology Services · market cap $5.2b. Down 55% from 52-week high of $222.53 — deep drawdown territory. Revenue growing +11%, comfortably above the S&P median. PEG 0.52 — paying under fair value for the growth rate. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $122.82 (implying +23% 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 55% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon. 1-3 yr $122.82 (analyst consensus (n=17)) — multiple re-rating thesis requires a catalyst. 5 yr $155.06 at ~9% CAGR — dividend + buyback compounding. 10 yr $198.86 if the moat survives secular pressure.
15. APP — AppLovin Corporation · score 83
Advertising Agencies · price $318.68 · 1Y $559.00 · 5Y $705.72 · 10Y $905.07
FCF $4.5b B · Rev +60.6% A · D/E 1.11 C+ · P/E 24.5x C+ · PEG 0.94 B+
Why now. Advertising Agencies · market cap $106.6b. Down 57% from 52-week high of $745.61 — deep drawdown territory. Revenue growing +61% — in hypergrowth territory. PEG 0.94 — paying under fair value for the growth rate. 30 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $559.00 (implying +75% 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. $106.6b 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 57% 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 15.6x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon. 1-3 yr $559.00 (analyst consensus (n=30)) — multiple re-rating thesis requires a catalyst. 5 yr $705.72 at ~17% CAGR — dividend + buyback compounding. 10 yr $905.07 if the moat survives secular pressure.
16. CARG — CarGurus, Inc. · score 82.9
Auto & Truck Dealerships · price $36.18 · 1Y $40.17 · 5Y $58.81 · 10Y $87.24
FCF $315m C · Rev +13.9% B+ · D/E 0.70 B+ · P/E 18.6x B · PEG 1.19 B+
Why now. Auto & Truck Dealerships · market cap $3.2b. 12% off the 52-week high of $41.22. Revenue growing +14%, comfortably above the S&P median. 12 sell-side analysts rate this a Buy with a mean 1-yr target of $40.17 (implying +11% 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 67% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 179% 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 $40.17 (analyst consensus (n=12)) — fundamentals + valuation re-rating. 5 yr $58.81 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $87.24 if current growth sustains into durable earnings power.
17. RMD — ResMed Inc. · score 82.8
Medical Instruments & Supplies · price $224.84 · 1Y $247.20 · 5Y $361.93 · 10Y $536.89
FCF $1.8b C+ · Rev +10.3% B · D/E 0.13 B+ · P/E 21.6x B+ · PEG 1.32 B
Why now. Medical Instruments & Supplies · market cap $32.6b. Down 23% 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 +10% 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.
18. TTD — The Trade Desk, Inc. · score 82.1
Advertising Agencies · price $13.56 · 1Y $13.62 · 5Y $19.94 · 10Y $29.58
FCF $863m C+ · Rev +11.6% B · D/E 0.17 A- · P/E 16.1x B+ · PEG 1.14 B+
Why now. Advertising Agencies · market cap $6.4b. Down 76% from 52-week high of $56.39 — deep drawdown territory. Revenue growing +12%, comfortably above the S&P median. 30 sell-side analysts rate this a Hold with a mean 1-yr target of $13.62 (implying +0% upside).
Moat. Net margin 14% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 16% 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.
Risk. Down 76% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Ad-spending cyclicality — marketing budgets are among the first cut in any recession and the last restored; the business levers higher in the bull but lower in the bear than the headline economy.
Horizon. 1-3 yr $13.62 (analyst consensus (n=30)) — fundamentals + valuation re-rating. 5 yr $19.94 at ~8% CAGR — compounding case rests on the competitive position widening. 10 yr $29.58 if current growth sustains into durable earnings power.
19. DECK — Deckers Outdoor Corporation · score 81.1
Footwear & Accessories · price $93.84 · 1Y $122.81 · 5Y $155.04 · 10Y $198.84
FCF $1.1b C+ · Rev +7.9% B · D/E 0.21 A- · P/E 13.3x A- · PEG 1.19 B+
Why now. Footwear & Accessories · market cap $12.8b. Down 25% 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 +31% 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 ~11% CAGR — dividend + buyback compounding. 10 yr $198.84 if the moat survives secular pressure.
20. GMED — Globus Medical, Inc. · score 80.7
Medical Devices · price $85.15 · 1Y $103.23 · 5Y $151.14 · 10Y $224.21
FCF $756m C+ · Rev +19.7% B+ · D/E 0.02 A- · P/E 21.8x B+ · PEG 1.49 B
Why now. Medical Devices · market cap $11.4b. 16% 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 +21% 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.
21. CPAY — Corpay, Inc. · score 80.3
Software - Infrastructure · price $406.16 · 1Y $450.64 · 5Y $568.93 · 10Y $729.63
FCF $1.6b C+ · Rev +20.4% A- · D/E 2.75 D · P/E 24.7x B+ · PEG 0.89 B+
Why now. Software - Infrastructure · market cap $26.7b. Trading near 52-week high of $409.68 — 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 $450.64 (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 2.75 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 $450.64 (analyst consensus (n=14)) — multiple re-rating thesis requires a catalyst. 5 yr $568.93 at ~7% CAGR — dividend + buyback compounding. 10 yr $729.63 if the moat survives secular pressure.
22. META — Meta Platforms, Inc. · score 80.3
Internet Content & Information · price $599.12 · 1Y $754.14 · 5Y $952.09 · 10Y $1,221
FCF $48.3b A · Rev +26.2% A- · D/E 0.43 B+ · P/E 22.6x B · PEG 0.89 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 0.89 — paying under fair value for the growth rate. 57 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $754.14 (implying +26% 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 $754.14 (analyst consensus (n=57)) — multiple re-rating thesis requires a catalyst. 5 yr $952.09 at ~10% CAGR — dividend + buyback compounding. 10 yr $1,221 if the moat survives secular pressure.
23. WMG — Warner Music Group Corp. · score 80.2
Entertainment · price $25.08 · 1Y $36.88 · 5Y $46.56 · 10Y $59.72
FCF $836m C+ · Rev +12.9% B+ · D/E 4.53 D · P/E 20.1x B · PEG 0.47 A
Why now. Entertainment · market cap $13.1b. Down 29% 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 +47% 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 ~13% CAGR — dividend + buyback compounding. 10 yr $59.72 if the moat survives secular pressure.
24. ACN — Accenture plc · score 79.5
Information Technology Services · price $179.82 · 1Y $178.89 · 5Y $225.85 · 10Y $289.64
FCF $12.6b A- · Rev +6.7% C+ · D/E 0.25 B · P/E 14.4x A- · PEG 1.30 B
Why now. Information Technology Services · market cap $110.0b. Down 38% 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 -1% 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. $110.0b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Down 38% 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.
25. VEEV — Veeva Systems Inc. · score 79.1
Health Information Services · price $236.58 · 1Y $244.14 · 5Y $357.45 · 10Y $530.25
FCF $1.7b C+ · Rev +16.2% B+ · D/E 0.01 A- · P/E 42.0x C · PEG 1.06 B+
Why now. Health Information Services · market cap $38.4b. Down 24% from 52-week high of $310.50 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. 28 sell-side analysts rate this a Buy with a mean 1-yr target of $244.14 (implying +3% 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 42x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. P/S 11.6x 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 ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $530.25 if current growth sustains into durable earnings power.
26. VRT — Vertiv Holdings Co · score 76.8
Electrical Equipment & Parts · price $281.81 · 1Y $338.15 · 5Y $495.09 · 10Y $734.43
FCF $2.9b B · Rev +26.2% A- · D/E 0.70 B · P/E 63.6x D · PEG 1.27 B
Why now. Electrical Equipment & Parts · market cap $108.5b. Down 26% 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 +20% 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 63.6x 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 ~12% 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 76.4
Engineering & Construction · price $816.86 · 1Y $1,033 · 5Y $1,304 · 10Y $1,673
FCF $1.2b C+ · Rev +18.9% B+ · D/E 0.13 A- · P/E 25.4x B+ · PEG 0.40 A
Why now. Engineering & Construction · market cap $36.0b. 14% off the 52-week high of $951.96. Revenue growing +19%, comfortably above the S&P median. PEG 0.40 — paying under fair value for the growth rate. 7 sell-side analysts rate this a Buy with a mean 1-yr target of $1,033 (implying +26% 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 $1,033 (analyst consensus (n=7)) — multiple re-rating thesis requires a catalyst. 5 yr $1,304 at ~10% CAGR — dividend + buyback compounding. 10 yr $1,673 if the moat survives secular pressure.
28. FIVE — Five Below, Inc. · score 75.9
Specialty Retail · price $234.24 · 1Y $262.38 · 5Y $331.25 · 10Y $424.82
FCF $505m C+ · Rev +25.9% A- · D/E 0.86 B · P/E 29.5x C+ · PEG 0.98 B+
Why now. Specialty Retail · market cap $13.0b. 7% off the 52-week high of $251.63. Revenue growing +26% — in hypergrowth territory. PEG 0.98 — paying under fair value for the growth rate. 21 sell-side analysts rate this a Buy with a mean 1-yr target of $262.38 (implying +12% 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 $262.38 (analyst consensus (n=21)) — multiple re-rating thesis requires a catalyst. 5 yr $331.25 at ~7% CAGR — dividend + buyback compounding. 10 yr $424.82 if the moat survives secular pressure.
29. MELI — MercadoLibre, Inc. · score 75.4
Internet Retail · price $1940.00 · 1Y $2,252 · 5Y $3,298 · 10Y $4,892
FCF $12.4b A- · Rev +41.2% A · D/E 1.69 C+ · P/E 52.9x D · PEG 1.12 B+
Why now. Internet Retail · market cap $98.4b. Down 24% 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 $2,252 (implying +16% 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. $98.4b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Trailing P/E 52.9x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. E-commerce competition — Amazon, Walmart, Shein, and Temu have each forced the rest of the category to compete on price, fulfillment speed, or assortment; sustaining margins requires one of those being structurally defended.
Horizon. 1-3 yr $2,252 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $3,298 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $4,892 if current growth sustains into durable earnings power.
30. NFLX — Netflix, Inc. · score 75.4
Entertainment · price $74.79 · 1Y $94.04 · 5Y $137.68 · 10Y $204.24
FCF $11.2b A- · Rev +16.0% B+ · D/E 0.55 B · P/E 23.5x B · PEG 1.71 C+
Why now. Entertainment · market cap $311.4b. Down 41% 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 +26% 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. $311.4b market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk. Down 41% 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.
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.