This refresh
Data-driven refresh August 12, 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); 1,783 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. Harmony’s market‑leading narcolepsy therapy WAKIX drives a 24.3% YoY revenue growth, backed by an 18.9% profit margin and a PEG of 0.59, giving the stock a compelling earnings multiple (PE 12.8) versus peers. Our Bull Rankings model rates the company 90.4/100 on Quality‑Growth, with Growth as the strongest pillar, underscoring the durability of its compounding cash‑flow engine. The thesis hinges on WAKIX’s entrenched U.S. market share and the pipeline’s ability to replicate that margin profile across rare‑neurology indications.
Moat. WAKIX’s novel histamine‑H3 antagonism is protected by robust U.S. patents and faces no direct generic competition, creating a high‑switching‑cost environment for narcolepsy patients and neurologists. The drug’s pricing power, reflected in an 18.9% profit margin, stems from its differentiated mechanism and limited therapeutic alternatives, cementing a durable revenue stream that fuels the company’s 24% growth runway.
Risk. The company’s valuation assumes the pipeline will deliver additional blockbuster launches; a miss in the Phase 3 Prader‑Willi trial would collapse the growth narrative, and the reverse‑DCF shows the current price embeds a -18% annual free‑cash‑flow growth rate—far below the actual 24% revenue expansion, indicating heavy optimism priced in. A single trial failure would push the stock back toward its 52‑week low of $25.52 and invalidate the growth premium.
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 Digital Media suite fuels a relentless 11.5% YoY revenue growth while delivering a razor‑thin 28.7% profit margin that translates into a staggering 62.8% ROE, underscoring its cash‑generating engine. Our Bull Rankings model awards a Quality score of 92, the highest pillar, reflecting the moat of subscription lock‑in across creators, marketers and enterprises. With the market pricing in a 1% annual free‑cash‑flow growth via reverse DCF, the actual 11.5% top‑line expansion makes the stock a clear upside play, anchored by the Digital Experience platform’s expanding enterprise contracts.
Moat. The subscription‑based Creative Cloud and Experience Cloud lock in photographers, video editors, marketers and agencies, creating high switching costs and predictable cash flow. Adobe’s 62.8% ROE stems from pricing power in a category‑lead position where customers pay premium for integrated tools they cannot replicate quickly, reinforcing a durable competitive edge.
Risk. The stock trades at a forward P/E of 15.1, modest but still above the sector average, and a beta of 1.4 signals heightened sensitivity to market swings; a slowdown in Digital Media adoption could compress the 11.5% growth rate, and a debt‑to‑equity of 0.61 limits flexibility for aggressive buybacks. A breach of the 52‑week low at $190 would confirm a valuation correction and invalidate the growth thesis.
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 cross‑border and local‑to‑local transactions is scaling at a 46.6% YoY revenue growth, driven by its extensive APM catalog and merchant‑centric APIs, and the company is already generating $413 m of free cash flow while maintaining a 18% profit margin—an upside that our model flags as a high‑quality growth play.
Moat. The moat lies in DLocal’s end‑to‑end payment orchestration that bundles local cards, bank transfers, and 200+ alternative payment methods, creating a friction‑high switching cost for merchants who would need to rebuild integrations for each new market. This network of local payment expertise is hard to replicate and fuels the company’s 34.6% ROE through pricing power in each region.
Risk. The bear case hinges on the fact that DLocal’s P/E of 22 is already premium relative to peers, and its debt‑to‑equity of 0.2 could climb if the company accelerates capex to support new market entries, eroding margins. A slowdown in cross‑border e‑commerce or a competitive push from regional incumbents could blunt the 46.6% revenue growth trajectory, breaking the bull thesis.
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’s Decline Monetization engine is unlocking a massive pool of rejected loan applications, turning them into revenue streams that drive a 25.6% YoY revenue growth, a 9.1% profit margin and a PE of 15—all at a price well below its 52‑week high. Our model gives PGY an 88.6/100 quality‑growth score, with Growth as the strongest pillar, confirming that the business can compound its cash flows as it scales its AI‑driven loan‑approval network. The thesis hinges on the continued expansion of the Decline Monetization and Dual Look products across US financial institutions, which should sustain the high growth trajectory.
Moat. The moat lies in Pagaya’s proprietary AI platform that powers Decline Monetization and Dual Look, creating a data‑rich network that financial partners cannot replicate quickly. This lock‑in generates high‑margin recurring revenue, reflected in a solid ROE of 19.5% and a free‑cash‑flow generation of $252 m TTM, giving Pagaya pricing power with its institutional customers.
Risk. The bear case centers on the extreme market volatility implied by a beta of 5.37 and a debt‑to‑equity of 1.34, which could amplify losses if credit‑market cycles turn sour. Moreover, the reverse DCF shows the current price assumes a -14% annual FCF decline, meaning any slowdown in the 25.6% revenue growth or margin compression would validate the pessimistic valuation and crush the upside. A breach of the 52‑week low at $10.40 would confirm the risk.
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 Oscar platform is rapidly scaling its health‑plan footprint, driving 27.5% YoY revenue growth while delivering a healthy 3.6% profit margin and a stellar 34.3% ROE. Our Bull Rankings model gives OSCR an 88.1 quality‑growth score, with Growth as the strongest pillar, indicating the business compounds at a rate that outpaces the reverse‑DCF’s implied decline in free‑cash‑flow growth. The thesis hinges on the platform’s ability to keep revenue expanding faster than the market’s pessimistic cash‑flow assumptions.
Moat. The Oscar platform creates a sticky ecosystem for individuals, families, and small groups, integrating enrollment, brokerage, and the Campaign Builder for providers—making switching costly for both members and payors. This integrated tech stack fuels pricing power, reflected in a ROE of 34.3%, and cannot be replicated quickly because it requires deep data integration and provider relationships.
Risk. Bears point to the lofty valuation: a forward P/E of 21.5 and a beta of 2.38 signal that the stock is priced for near‑term growth that may falter if revenue acceleration slows or margins compress. The reverse‑DCF already assumes a decline in free‑cash‑flow growth, and any miss on the 27.5% revenue growth trajectory would validate the pessimistic pricing. A sustained slowdown would push the P/E into double‑digit excess and trigger a sell‑off.
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. 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’s QuickBooks Online platform is the engine of a 15.1% FY revenue growth and fuels a $7.8B free‑cash‑flow generation base, delivering a PE of 20.5x on a high‑margin (21.9%) business. Our Bull Rankings model awards INTU an 87.4/100 quality‑growth score, with Growth as the strongest pillar, confirming that the compounding power of its SMB ecosystem is real and sustainable. The dividend raise adds a shareholder‑friendly catalyst, but the thesis hinges on QuickBooks’ ability to keep expanding its subscription base and cross‑selling Mailchimp, keeping the growth engine humming.
Moat. The QuickBooks ecosystem locks small‑ and mid‑market firms into an integrated suite of accounting, payroll, payments and financing, creating high switching costs and enabling pricing power that drives a 22.2% ROE. Mailchimp adds a sticky marketing‑automation layer, deepening customer relationships and expanding revenue per user faster than any pure‑play competitor can replicate.
Risk. The market is pricing INTU at a lofty 20.5× PE despite a 15.1% revenue growth rate, and any slowdown in subscription uptake or margin compression would expose that premium. A modest rise in debt‑to‑equity (currently 0.33) or a failure to sustain the dividend increase could trigger a sell‑off, especially if competitors capture SMB mindshare. The bear case crystallizes if quarterly revenue growth falls below 10% and the stock slides toward its 52‑week low of $252.84.
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.
7. NBIX — Neurocrine Biosciences, Inc. · score 87.4
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. NBIX is poised to dominate the underserved movement‑disorder market thanks to INGREZZA, the only FDA‑approved therapy for tardive dyskinesia, which is driving a 34.4% YoY revenue surge and a 20.9% profit margin. The franchise’s cash‑generating power is evident in $870 m of free cash flow and a low debt‑to‑equity of 0.12, giving the company runway to reinvest and compound earnings. The thesis rests on sustaining this high‑growth engine as INGREZZA expands globally and new pipeline candidates roll out.
Moat. INGREZZA’s unique mechanism and FDA approval create a high barrier to entry, locking in neurologists and movement‑disorder specialists who face costly clinical trials to replicate its efficacy. Coupled with a 19.1% ROE generated from pricing power in a niche, reimbursed therapeutic class, NBIX can fund R&D without diluting shareholders, preserving its competitive edge.
Risk. The bear case hinges on the concentration risk of INGREZZA; any safety signal or competitor breakthrough could compress the 23.7 × PE and stall the 34.4% revenue growth. A slowdown in pipeline read‑outs or a regulatory setback would force the stock to revert to its 52‑week low of $122.14, confirming the downside.
Horizon. 1-3 yr $213.13 (analyst consensus (n=27)) — fundamentals + valuation re-rating. 5 yr $312.04 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $462.89 if current growth sustains into durable earnings power.
8. NVDA — NVIDIA Corporation · score 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 AI‑driven data‑center compute platform is the single engine powering the next wave of enterprise AI, and that engine is expanding at a staggering 70.7% YoY revenue growth, backed by an industry‑leading 63% profit margin and $119.1 billion of free cash flow. Our Bull Rankings model gives the stock an 85.9/100 quality‑growth score, with Growth as the strongest pillar, confirming that the compounding engine is real and durable. The thesis rests on the continued capture of AI infrastructure spend, which will keep the free‑cash‑flow runway expanding at double‑digit rates.
Moat. The moat lives in NVIDIA’s Compute & Networking segment, where its data‑center GPUs and AI software are the de‑facto standard for hyperscale cloud providers, creating massive switching costs and a virtuous cycle of software‑enabled hardware lock‑in. This pricing power translates into an ROE of 81.7%, far above peers, because customers pay a premium for performance that rivals cannot replicate without years of R&D and ecosystem development.
Risk. The bear case hinges on the market pricing in a lofty PE ratio of 33.3 and a beta of 2.21, meaning any slowdown in AI spend or a macro‑shock could crush the stock’s valuation fast; a dip in margin or a rise in debt (currently low at 0.07 D/E but could climb with capex) would confirm the risk. A sustained deceleration of revenue growth below the current 70.7% would trigger a sell‑off and invalidate the growth premium.
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 is a high-quality compounder trading at a deeply pessimistic valuation, as evidenced by our model's Reverse DCF implying an unsustainable ~-17%/yr free-cash-flow growth for the next decade. This is a stark disconnect from its actual revenue growth of 7.4% and robust free cash flow generation of $1.7B against an $11.5B market cap. Our model's Quality score of 95/100, the strongest pillar of its 85.8/100 Quality-Growth score, confirms the underlying business strength, which management is leveraging through active stock buybacks.
Moat. GoDaddy's durable edge stems from its comprehensive ecosystem for small businesses, particularly within its Applications and Commerce (A&C) segment. Offerings like Websites + Marketing and Managed WordPress create significant switching costs, as customers integrate their online presence, e-commerce stores, and marketing tools such as GoDaddy Studio and search engine optimization services. This integrated suite makes it difficult and costly for customers to migrate to competitors, fostering sticky recurring revenue.
Risk. The primary risk for GoDaddy lies in its decelerating growth profile, which our model identifies as its weakest pillar (Growth score of 76/100). The current 7.4% FY YoY revenue growth, while positive, may not be sufficient to re-rate the stock if competition in cloud-based website and e-commerce tools intensifies, particularly against larger, more diversified tech platforms. The concrete signal confirming this bear case would be a sustained decline in revenue growth rates or a contraction in its 17.8% profit margin.
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. DOCS’s moat lies in its AI‑powered Ask assistant that embeds evidence‑based guidance directly into physicians’ daily workflow, driving stickiness and premium ad spend. The platform’s 25.5% profit margin, $306m free cash flow and 11.2% revenue growth YoY prove it can monetize that engagement while still expanding. With our model’s Growth pillar at 90, the compounding engine of higher‑margin ad revenue and expanding clinical content will keep cash generation accelerating, making the current price a launchpad for sustained upside.
Moat. The Ask AI assistant creates a hard‑to‑replicate workflow lock‑in: physicians rely on HIPAA‑compliant, real‑time evidence during patient care, turning Doximity into a daily indispensable tool. This generates a network effect—more users attract more pharma sponsors—while the platform’s 18.2% ROE reflects pricing power derived from being the go‑to digital hub for U.S. clinicians, a position competitors struggle to breach quickly.
Risk. The 31.1 P/E and a beta of 1.21 signal that the market already prices in aggressive growth expectations; any slowdown below the implied 8% free‑cash‑flow growth from our reverse DCF would force a re‑rating. A modest dip in ad spend or a shift of physicians to rival platforms would compress the 25.5% margin, and a breach of the 0.01 debt‑to‑equity floor would erode the high‑quality perception. A sustained miss on the 11.2% revenue growth target would confirm the bear case.
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. Halozyme’s rHuPH20 platform is unlocking a wave of sub‑cutaneous biologic launches, and that rollout is already fueling a 41.2% YoY revenue growth and a 24.9% profit margin while the stock trades at a modest PE of 30.1 versus peers. The Bull Rankings model scores Growth at a perfect 100, making the growth pillar the strongest driver, and with free‑cash‑flow of $806 m the company can keep buying back shares, compounding earnings for years. The thesis rests on the continued expansion of rHuPH20‑enabled products, which should keep the revenue compounding at double‑digit rates.
Moat. Halozyme’s patented recombinant human hyaluronidase (rHuPH20) is the only FDA‑cleared enzyme that reliably enhances sub‑cutaneous delivery of large biologics, creating a high switching cost for partners that have built their SC pipelines around Hylenex and XYOSTED. This IP barrier, combined with entrenched relationships with major biologic developers, prevents competitors from quickly replicating the same absorption boost, locking in a durable revenue stream.
Risk. The stock’s valuation is stretched: a PE of 30.1 and a reverse‑DCF that implies ~0% free‑cash‑flow growth for the next decade suggest the market has already priced in the full double‑digit revenue expansion. Any slowdown in rHuPH20 adoption or a competitor breakthrough would force the multiple down, and the beta of 0.85 means the share is still sensitive to broader market swings. A miss on the next partnership rollout would confirm the bear case and trigger a price correction toward the 52‑week low.
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 $90.95 · 5Y $133.17 · 10Y $197.54
FCF $433m C · Rev +4.7% C+ · D/E 0.33 A- · P/E 11.1x A · PEG 0.48 A
Why now. Stride, Inc. (LRN) is a deeply undervalued quality compounder, trading at just 11.1x TTM P/E and a remarkable 0.48 PEG ratio. Our Bull Rankings model highlights Value as its strongest pillar at 97/100, while the reverse DCF implies a deeply pessimistic ~-13%/yr free-cash-flow growth sustained for 10 years, starkly contrasting its actual 4.7% FY YoY revenue growth and robust $433m in TTM free cash flow against a $3.3b market cap. The market is dramatically underpricing a cash-generative business with durable returns, ignoring the compounding power of its comprehensive educational platform delivering online coursework in high-demand fields like software engineering and healthcare.
Moat. LRN's durable edge stems from its proprietary, end-to-end educational platform, which provides single sign-on capability for content management, learning management, student information, data reporting and analytics, and various support systems. This integrated ecosystem creates significant switching costs for educational institutions and students, making it difficult for competitors to dislodge. The company's impressive 20.7% ROE reflects the pricing power and operational efficiency derived from this sticky, comprehensive platform and its specialized curriculum offerings.
Risk. The primary concern for LRN is its moderate 4.7% FY YoY revenue growth, which our Bull Rankings model flags with Growth as its weakest pillar at 72/100. This modest growth, coupled with potential increased competition in the online coursework market for specific fields like software engineering or healthcare, could limit upside. A sustained inability to expand its reach or curriculum offerings beyond its current base, leading to flat or declining enrollments in its core platform segments, would confirm the bear case.
Horizon. 1-3 yr $90.95 (structural (no analyst coverage)) — fundamentals + valuation re-rating. 5 yr $133.17 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $197.54 if current growth sustains into durable earnings power.
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. EXLS is riding the AI‑powered digital transformation of insurance operations – from claims management to underwriting support – where its analytics platform is already winning contracts across North America and Europe. The business is growing revenue at 13.4% YoY, converting that into a 11.7% profit margin and a stellar ROE of 32.3%, while the Bull Rankings model gives it an 83.5/100 quality‑growth score with Growth as its strongest pillar. Because the reverse‑DCF implies only ~4% free‑cash‑flow growth versus the 13% top‑line growth we see, the market is under‑pricing the compounding engine, making the current price a launchpad for the next wave of AI‑driven insurance spend.
Moat. EXLS’s moat stems from its deep integration into insurers’ core processes – claims, policy servicing and actuarial analytics – which creates high switching costs and entrenched data assets. The 32.3% ROE reflects pricing power that comes from being the preferred AI partner for large carriers, allowing the firm to command premium fees that competitors can’t easily replicate without comparable data breadth and regulatory experience.
Risk. The bear case focuses on the valuation stretch: a forward P/E of 22.1 is well above many sector peers, and the Bull Rankings model flags Value as the weakest pillar, suggesting the price already embeds optimistic growth assumptions. If revenue growth decelerates below the current 13.4% pace or margins erode, the high multiple will compress sharply. A breach of the 52‑week low ($24.85) would confirm the market’s skepticism and trigger a sell‑off.
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 $179.83 · 10Y $266.76
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)) — fundamentals + valuation re-rating. 5 yr $179.83 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $266.76 if current growth sustains into durable earnings power.
15. APP — AppLovin Corporation · score 83
Advertising Agencies · price $318.68 · 1Y $559.00 · 5Y $818.43 · 10Y $1,214
FCF $4.5b B · Rev +60.6% A · D/E 1.11 C+ · P/E 24.5x C+ · PEG 0.94 B+
Why now. AppLovin’s AI‑driven MAX in‑app bidding platform is locking developers into a real‑time auction that extracts ever‑higher CPMs, fueling a revenue surge of 60.6% YoY while preserving a staggering 64.6% profit margin and generating $4.5B of free cash flow. Those dynamics give the company a self‑reinforcing growth loop that should keep compounding for years, and the whole thesis hinges on MAX’s ability to dominate the mobile‑ad inventory market.
Moat. MAX creates a sticky ecosystem for app publishers because each additional ad impression improves the auction’s data set, raising the value of every future slot and making it prohibitively costly for developers to switch to a rival bidding engine. Coupled with Adjust’s measurement suite and Wurl’s connected‑TV reach, AppLovin commands a full‑stack, data‑rich stack that competitors cannot replicate quickly.
Risk. The stock trades at a lofty 23.4× PE with a beta of 2.53, meaning any market pull‑back or a slowdown in the mobile ad spend cycle would slam the valuation. A debt‑to‑equity of 1.11 adds leverage risk, and if revenue growth reverts toward the sector average, the 15% FCF growth baked into the reverse‑DCF will be unattainable, triggering a sharp price correction.
Horizon. 1-3 yr $559.00 (analyst consensus (n=30)) — fundamentals + valuation re-rating. 5 yr $818.43 at ~22% CAGR — compounding case rests on the competitive position widening. 10 yr $1,214 if current growth sustains into durable earnings power.
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. CarGurus’ Digital Deal platform is turning its massive shopper‑to‑dealer network into a repeat‑purchase engine, fueling a 13.9% YoY revenue growth while preserving a 18.2% profit margin and an eye‑popping 66.6% ROE. Our Bull Rankings model crowns the business with a Quality score of 88, underscoring the durability of its subscription‑based dealer ecosystem, and the market is already rewarding that with a consensus 1‑yr target of $40.17. The thesis rests on the compounding power of Digital Deal expanding its share of online transactions, which should keep earnings accelerating well beyond the next twelve months.
Moat. The moat lives in CarGurus’ integrated marketplace: dealers pay subscription fees to access a captive audience, and the Digital Deal workflow locks buyers into the platform from browse to finance, creating a high‑switching‑cost loop. This network effect drives the extraordinary 66.6% ROE, as pricing power stems from being the primary conduit for online car purchases, a position competitors can’t replicate without rebuilding the same dealer‑shopper ecosystem.
Risk. The stock trades at a forward P/E of 19, a premium for a growth name, while the Bull Rankings model flags Value as its weakest pillar, suggesting the market may be over‑paying for current momentum. The reverse DCF implies a -3% annual free‑cash‑flow growth over ten years—far below the 13.9% revenue growth we see—meaning any slowdown or margin compression would instantly invalidate the price. A breach of the 52‑week low ($26.39) or a rise in debt‑to‑equity above 0.7 would confirm the bear case.
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. ResMed is a high-quality compounder poised for sustained growth, driven by increasing global demand for its medical devices and cloud-based software in the Sleep and Breathing Health segment, particularly for sleep apnea diagnosis with products like ApneaLink Air and NightOwl. Our model assigns a robust Quality score of 90, reflecting its strong fundamentals, including a 27.4% profit margin and $1.8b in free cash flow, which fuel consistent revenue growth of 10.3%. The crux is ResMed's ability to convert this market need into durable, high-margin revenue streams.
Moat. ResMed's durable edge stems from its specialized expertise and integrated ecosystem of medical devices and cloud-based software applications for respiratory disorders, particularly sleep apnea. Its offerings, like the portable diagnostic device ApneaLink Air and cloud-connected NightOwl, create significant switching costs for clinics and patients. This category leadership and proprietary technology in a critical health segment enable the company to generate an impressive 23.4% return on equity.
Risk. Skeptics would argue that ResMed's current valuation already prices in significant optimism, making it vulnerable to any deceleration in its core Sleep and Breathing Health segment. Our model's weakest pillar is Value (75), and its reverse DCF implies only ~3%/yr free-cash-flow growth sustained for 10 years, which sits well below its actual FY YoY revenue growth of 10.3%. This suggests the market expects a substantial slowdown or margin compression, confirmed if its P/E TTM of 21.6 fails to compress despite slower growth.
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
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 80.6
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.