This refresh
Data-driven refresh August 13, 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 (5,246 tickers); 1,707 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. ADBE — Adobe Inc. · score 89.5
Software - Application · price $258.75 · 1Y $269.61 · 5Y $394.73 · 10Y $585.56
FCF $10.3b A- · Rev +11.5% B · D/E 0.61 C+ · P/E 14.8x A- · PEG 0.66 A-
Why now. Adobe’s Digital Media suite—especially its Photoshop and Premiere ecosystems—continues to lock in creators and marketers, delivering a 28.7% profit margin, a stellar 62.8% ROE, and 11.5% YoY revenue growth. Coupled with a low PE of 14.8x and a Bull Rankings model Quality score of 89.5 (Quality pillar strongest), the business compounds earnings faster than the market expects, making the stock a must‑hold for growth‑oriented investors. The thesis hinges on the relentless expansion of subscription revenue across both Digital Media and Digital Experience segments.
Moat. Adobe’s moat derives from the sticky, subscription‑based Creative Cloud platform that serves photographers, video editors, designers, and marketers, creating high switching costs as creators build extensive asset libraries and workflows around its tools. The 62.8% ROE reflects pricing power from being the de‑facto standard in content creation, a position competitors can’t quickly replicate without massive ecosystem investments.
Risk. The bearish view centers on the stock’s modest growth pace—revenue is only up 11.5% YoY—while the market’s implied 0% free‑cash‑flow growth over the next decade signals that the current price already assumes optimism; any slowdown or margin compression would expose the 1.4 beta and a P/E that, while low, still reflects premium expectations. A pullback in enterprise spend on Digital Experience solutions would trigger a drop toward the 52‑week low of $190.12, confirming the bear case.
Horizon. 1-3 yr $269.61 (analyst consensus (n=34)) — fundamentals + valuation re-rating. 5 yr $394.73 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $585.56 if current growth sustains into durable earnings power.
2. DLO — DLocal Limited · score 89.2
Software - Infrastructure · price $14.28 · 1Y $18.25 · 5Y $26.72 · 10Y $39.64
FCF $413m C · Rev +46.6% A · D/E 0.20 B · P/E 22.3x B+ · PEG 0.48 A
Why now. DLocal’s platform‑for‑platforms payment suite is unlocking explosive cross‑border commerce, fueling a 46.6% revenue growth YoY while delivering a 34.6% ROE and generating $413 m of free cash flow in the trailing twelve months. Those metrics prove the business can compound earnings at double‑digit rates, and the market still undervalues that upside. The thesis rests on the relentless expansion of its pay‑in and pay‑out solutions across e‑learning, ride‑hailing and streaming, which will keep the growth engine humming.
Moat. The moat lives in DLocal’s end‑to‑end payment stack that supports hundreds of alternative payment methods and local cards, creating high switching costs for merchants that need a single gateway for global and local transactions. This breadth lets DLocal command pricing power, reflected in its 34.6% ROE, and the platform’s deep integrations with large SaaS and marketplace customers make replication costly and slow.
Risk. The stock trades at a forward P/E of 22.3, a multiple that already embeds aggressive expectations, while the Bull Rankings model’s reverse DCF implies a negative -8% / yr free‑cash‑flow growth for the next decade. If revenue growth decelerates or dilution from equity issuances accelerates, the price will struggle to meet the consensus 1‑yr target, confirming the bear case.
Horizon. 1-3 yr $18.25 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $26.72 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $39.64 if current growth sustains into durable earnings power.
3. NBIX — Neurocrine Biosciences, Inc. · score 87.9
Drug Manufacturers - Specialty & Generic · price $156.49 · 1Y $213.13 · 5Y $312.04 · 10Y $462.89
FCF $870m C+ · Rev +34.4% A · D/E 0.12 B+ · P/E 22.9x B+ · PEG 0.49 A
Why now. NBIX’s growth engine is anchored by INGREZZA, the only FDA‑approved therapy for tardive dyskinesia, driving a 34.4% YoY revenue surge and fueling a 20.9% profit margin that fuels free cash flow of $870 m. Coupled with a low beta of 0.39, the stock is positioned to compound earnings as the TD‑dyskinesia market expands, making the 8% reverse‑DCF growth assumption overly conservative and the upside to the consensus $213.13 target compelling.
Moat. INGREZZA’s unique mechanism and FDA exclusivity create a high switching cost for neurologists treating movement disorders, while NBIX’s 19.1% ROE reflects pricing power from being the category leader in this niche. The company’s tight debt‑to‑equity of 0.12 lets it reinvest cash into pipeline candidates without diluting shareholders, preserving its competitive edge.
Risk. The bull thesis hinges on sustained premium pricing for INGREZZA; any successful competitor in the tardive dyskinesia space would compress margins and force a re‑rating. At a forward P/E of 22.9, the stock trades at a premium that assumes continued double‑digit growth—if revenue growth stalls below the historic 34% rate, the valuation crumbles. A breach of the 52‑week low ($122.14) would confirm the downside.
Horizon. 1-3 yr $213.13 (analyst consensus (n=27)) — fundamentals + valuation re-rating. 5 yr $312.04 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $462.89 if current growth sustains into durable earnings power.
4. HRMY — Harmony Biosciences Holdings, Inc. · score 87.7
Biotechnology · price $39.77 · 1Y $46.10 · 5Y $67.50 · 10Y $100.12
FCF $355m C · Rev +24.3% A- · D/E 0.16 B+ · P/E 12.9x A- · PEG 0.60 A-
Why now. Harmony Biosciences presents a compelling growth opportunity, with its lead product WAKIX driving robust expansion in rare neurological diseases while trading at a deeply discounted valuation. The company's 24.3% FY YoY revenue growth and healthy 18.9% profit margin are not reflected in its 12.9 TTM P/E, which is further underscored by a 0.6 PEG ratio. Our model's strong Value pillar (93/100) confirms this disconnect, as today's price implies a highly pessimistic ~-17%/yr free-cash-flow growth sustained for 10 years, far below its actual top-line expansion. The crux rests on the continued commercial success of WAKIX and the successful progression of its Pitolisant pipeline for conditions like Prader-Willi Syndrome and Myotonic Dystrophy.
Moat. Harmony Biosciences' durable edge stems from its specialized focus on rare neurological diseases and the novel mechanism of action of WAKIX (pitolisant), which provides a distinct therapeutic option for adult narcolepsy patients. This intellectual property, combined with its ongoing development of Pitolisant for other conditions like Prader-Willi Syndrome and Myotonic Dystrophy, creates significant barriers to entry in these niche markets. While our model's Quality pillar at 80/100 indicates a solid business, the specialized nature of these therapies and the regulatory hurdles for new entrants ensure sustained market position.
Risk. The primary risk for Harmony Biosciences lies in its concentrated product portfolio and the inherent uncertainties of pharmaceutical development for rare neurological diseases. While WAKIX is a commercial success, the company's future growth heavily relies on the successful progression and commercialization of Pitolisant for new indications such as Prader-Willi Syndrome and Myotonic Dystrophy. Our model's Quality pillar, while decent at 80/100, is its weakest, suggesting potential vulnerabilities if these pipeline assets face clinical trial setbacks or regulatory hurdles. A sustained deceleration in revenue growth below the current 24.3% FY YoY, particularly if driven by pipeline failures or increased competition for WAKIX, would confirm the bear case.
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.
5. INTU — Intuit Inc. · score 86.4
Software - Application · price $334.71 · 1Y $455.38 · 5Y $666.72 · 10Y $989.04
FCF $7.8b B+ · Rev +15.1% B+ · D/E 0.33 B · P/E 20.4x B+ · PEG 0.87 B+
Why now. Intuit’s QuickBooks Online platform is cementing its dominance in the SMB finance stack, driving a 15.1% YoY revenue growth while delivering a 21.9% profit margin and a robust Free Cash Flow of $7.8B—all on a $91.6B market cap. The Bull Rankings model awards a Growth pillar of 90, confirming that the compounding engine in QuickBooks and Mailchimp will keep accelerating earnings, and the 1‑yr analyst consensus of $455.38 underscores near‑term upside. The thesis hinges on the relentless expansion of the QuickBooks ecosystem, which fuels both recurring revenue and higher‑margin add‑ons.
Moat. Intuit’s moat lives in the integrated QuickBooks ecosystem that locks small‑and‑mid‑market businesses into a suite of accounting, payroll, and payment solutions, creating high switching costs and network effects across its 5‑million+ users. This stickiness fuels a ROE of 22.2%, reflecting pricing power from category leadership in SMB financial management that competitors can’t replicate quickly.
Risk. The biggest headwind is the elevated valuation: a forward P/E of 20.4 far exceeds the sector average and assumes growth far beyond the reverse‑DCF implied free‑cash‑flow growth of –3% per year, meaning any slowdown in the 15.1% revenue growth rate would trigger a sharp re‑rating. A bear would watch for margin compression or a rise in debt‑to‑equity above 0.33, which would confirm that the market’s optimism is overstated.
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.
6. OSCR — Oscar Health, Inc. · score 86.3
Healthcare Plans · price $29.61 · 1Y $29.00 · 5Y $42.46 · 10Y $62.98
FCF $4.4b B · Rev +27.5% A- · D/E 0.23 B · P/E 22.8x B+ · PEG 0.83 B+
Why now. Oscar Health’s proprietary Oscar platform is unlocking rapid enrollment in the individual and small‑group markets, fueling a 27.5% YoY revenue growth while the business scales to a 3.6% profit margin and a stellar 34.3% ROE. Our Bull Rankings model awards a Growth pillar of 95, making the growth story the single strongest driver, and the current price already reflects that optimism. The thesis rests on the platform’s ability to keep compounding enrollment and margin improvements over the next decade.
Moat. The Oscar platform and Campaign Builder create a sticky digital ecosystem for members, brokers, and providers, locking in data and engagement that rivals can’t replicate quickly. This ecosystem underpins the 34.3% ROE by delivering pricing power and lower acquisition costs in the highly competitive health‑plan space.
Risk. A reverse‑DCF shows the market pricing in a decline of free‑cash‑flow growth for ten years, and with a high beta of 2.38 the stock is vulnerable to market swings; the P/E of 22.8 also suggests the growth premium may be overstated if margin expansion stalls. A sustained slowdown in enrollment or a rise in operating costs would confirm the bear case and crush the growth narrative.
Horizon. 1-3 yr $29.00 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $42.46 at ~7% CAGR — compounding case rests on the competitive position widening. 10 yr $62.98 if current growth sustains into durable earnings power.
7. PGY — Pagaya Technologies Ltd. · score 86.2
Software - Infrastructure · price $20.31 · 1Y $28.80 · 5Y $42.17 · 10Y $62.55
FCF $252m C · Rev +25.6% A- · D/E 1.34 C · P/E 14.4x A- · PEG 0.04 A
Why now. Pagaya’s Decline Monetization platform is unlocking a hidden pool of credit that banks routinely reject, and that pipeline is now expanding at a 25.6% YoY revenue growth rate while delivering $252 m of free cash flow and a razor‑thin PEG of 0.04. The Bull Rankings model scores the stock 86.2/100 on quality‑growth, with Value as its strongest pillar, confirming that the market is severely undervaluing a business that already trades at a modest PE of 14.4. The thesis rests on the continued scaling of Decline Monetization and Dual Look across U.S. lenders, compounding cash generation for years to come.
Moat. The moat lives in Pagaya’s AI‑driven Decline Monetization network, which routes rejected loan applications to a captive pool of institutional investors that cannot be replicated without the proprietary data and real‑time scoring engine. This creates high switching costs for partner banks and sustains a pricing advantage that fuels a ROE of 19.5%, well above the sector average.
Risk. The stock’s beta of 5.37 makes it wildly sensitive to market swings, and the reverse‑DCF shows the current price embeds a -15% annual free‑cash‑flow decline for the next decade—an assumption that clashes with the actual 25.6% revenue growth and could quickly unravel if financing costs rise on the 1.34 debt‑to‑equity ratio. A sustained market correction or a slowdown in partner adoption would validate this risk and crush the upside.
Horizon. 1-3 yr $28.80 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $42.17 at ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $62.55 if current growth sustains into durable earnings power.
8. NVDA — NVIDIA Corporation · score 85.9
Semiconductors · price $224.09 · 1Y $302.83 · 5Y $443.37 · 10Y $657.71
FCF $119.1b A · Rev +70.7% A · D/E 0.07 B+ · P/E 34.4x B · PEG 0.60 A-
Why now. NVDA’s AI‑accelerated Compute & Networking segment is driving a 70.7% YoY revenue surge, powered by its dominant data‑center GPUs that command a 63% profit margin and an 81.7% ROE—proof that the company is a high‑quality compounder. The Bull Rankings model flags a 99/100 growth score, underscoring that the 70.7% revenue lift is sustainable and that the firm’s free‑cash‑flow of $119.1 billion fuels a 51%/yr growth implied by the reverse‑DCF, comfortably above the current 34.4× P/E. The single‑most compelling thesis is that NVIDIA’s GPU‑based AI platform will continue to capture the exploding AI infrastructure market, delivering compound returns that outpace the broader semiconductor sector.
Moat. NVIDIA’s moat is the proprietary CUDA‑enabled GPU architecture that powers its GeForce and data‑center GPUs, giving it a 63% profit margin that rivals only a handful of peers. This architecture creates a strong switching cost for enterprise customers—data‑center operators and automotive OEMs rely on NVIDIA’s software stack to run AI workloads, and the cost of migrating to a competitor is prohibitive. The result is a high ROE of 81.7% that reflects pricing power and a locked‑in customer base that cannot be easily replicated.
Risk. The bear case hinges on NVIDIA’s high beta of 2.21 and its 34.4× P/E, which expose the stock to market volatility and valuation compression if AI demand slows. A 70% dividend raise could erode free cash flow, while the 0.07 debt‑to‑equity ratio leaves little room for margin contraction if the 70.7% revenue growth decelerates. A significant slowdown in the AI infrastructure market or a competitive breakthrough from a rival GPU architecture would trigger a sharp price correction.
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 85.6
Software - Infrastructure · price $91.82 · 1Y $104.80 · 5Y $153.44 · 10Y $227.61
FCF $1.7b C+ · Rev +7.4% B · D/E n/a · P/E 13.6x A · PEG 0.68 A-
Why now. The bull case hinges on GoDaddy’s Applications & Commerce suite—especially the high‑margin Websites + Marketing and Managed WordPress tools—that is fueling a resilient 7.4% revenue growth and a solid 17.8% profit margin. Coupled with a free‑cash‑flow generation of $1.7 B and a low PE of 13.6x, the business is compounding cash at a rate far above its modest growth, making the current price a premium on future cash flow. The thesis rests on the continued expansion of SMBs adopting GoDaddy’s cloud‑based platform, which should keep the compounding engine humming.
Moat. GoDaddy’s moat stems from its integrated platform that bundles website building, e‑commerce, and marketing tools into a single subscription, creating high switching costs for small‑business owners who rely on the seamless workflow across the Applications & Commerce segment. The Core Platform underpins these services, delivering economies of scale and a data‑driven edge that competitors can’t replicate quickly, locking in recurring revenue.
Risk. The bear case focuses on the modest growth pillar—our model flags Growth at only 75—meaning the 7.4% YoY revenue increase may falter if SMB spending tightens, while the PE of 13.6x, though modest, still reflects market expectations of continued acceleration. A slowdown in free‑cash‑flow growth below the implied -16%/yr from the reverse DCF would trigger a re‑rating, and a beta of 0.92 suggests limited upside cushioning. A sustained miss on the 7.4% growth trajectory would validate the bear’s warning.
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. HALO — Halozyme Therapeutics, Inc. · score 85
Biotechnology · price $101.79 · 1Y $99.56 · 5Y $145.76 · 10Y $216.22
FCF $806m C+ · Rev +41.2% A · D/E n/a · P/E 29.9x B · PEG 0.79 A-
Why now. Halozyme’s rHuPH20 platform is unlocking a wave of sub‑cutaneous biologic launches, and that rollout is already delivering 41.2% revenue growth YoY and a healthy 24.9% profit margin. The business is cash‑rich, generating $806 m of free cash flow on a $11.6 b market cap, which fuels aggressive buybacks that compress share count as earnings compound. With a PEG of 0.79, the market is already pricing in growth, but the real catalyst is the expanding partner pipeline that will keep the growth engine humming for years – that compounding revenue stream is the thesis’s backbone.
Moat. The patented recombinant human hyaluronidase (rHuPH20) is the core of Halozyme’s moat, giving its Hylenex and XYOSTED formulations a unique enzymatic advantage that enhances sub‑cutaneous delivery for partner biologics. This IP‑protected enzyme creates high switching costs for pharma partners who have integrated rHuPH20 into their formulation pipelines, and no comparable off‑the‑shelf alternative exists, locking in long‑term licensing revenue.
Risk. The valuation is stretched: a forward P/E of 29.9 and a reverse‑DCF implying essentially zero free‑cash‑flow growth over the next decade clash with the 41.2% revenue surge, meaning any slowdown in partner adoption would expose the premium. A modest dip in margin or a failed co‑development could push the P/E even higher, and the beta of 0.85 offers limited downside protection. The bear case materializes if quarterly FCF stalls and the market re‑prices the growth assumption, pulling the stock back toward its 52‑week low of $61.23.
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.
11. DOCS — Doximity, Inc. · score 84.5
Health Information Services · price $24.99 · 1Y $29.41 · 5Y $43.06 · 10Y $63.88
FCF $306m C · Rev +11.2% B · D/E 0.01 A · P/E 29.8x B · PEG 0.59 A-
Why now. Doximity is a compelling growth story, capitalizing on its indispensable digital platform for US medical professionals. The company's ability to deliver targeted sponsored content from pharmaceutical manufacturers and health systems, alongside workflow tools like Ask and Scribe, drives a robust business model, evidenced by a 25.5% profit margin and $306m in free cash flow (TTM). Our model's Quality score of 88/100, its strongest pillar, underscores this operational excellence, while the current price implying only ~7%/yr FCF growth suggests significant pessimism is already priced in, well below its 11.2% FY YoY revenue growth. The crux lies in Doximity's continued expansion of its highly engaged medical professional network and its unique position to monetize this audience.
Moat. Doximity benefits from a powerful network effect among medical professionals, as its Doximity platform becomes the go-to source for personalized clinical and professional content, including peer updates and clinical discussions. The integration of HIPAA-compliant workflow tools like Ask and Scribe creates high switching costs, embedding the platform deeply into daily practice. This unique, verified audience provides a proprietary distribution channel for sponsored content from pharmaceutical manufacturers and health systems, difficult for competitors to replicate quickly.
Risk. The primary bear case against Doximity centers on a potential deceleration of its core revenue growth, particularly if competition intensifies for advertising dollars from pharmaceutical manufacturers and health systems. Despite its 'growth' classification, the company's FY YoY revenue growth of 11.2% is modest, making its P/E of 29.8 times TTM earnings appear elevated. Our model's weakest pillar, Value (80/100), flags this potential overvaluation relative to peers given the current growth trajectory. A sustained decline in the effectiveness or adoption of its sponsored content offerings, or a slowdown in new user acquisition for its Doximity platform, 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.
12. EXLS — ExlService Holdings, Inc. · score 83
Information Technology Services · price $34.33 · 1Y $44.38 · 5Y $64.97 · 10Y $96.38
FCF $297m C · Rev +13.4% B+ · D/E 0.57 C+ · P/E 21.7x B+ · PEG 1.04 B+
Why now. Information Technology Services · market cap $5.2b. Down 24% 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 +29% 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 ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $96.38 if current growth sustains into durable earnings power.
13. RMD — ResMed Inc. · score 82.7
Medical Instruments & Supplies · price $226.00 · 1Y $247.20 · 5Y $361.93 · 10Y $536.89
FCF $1.8b C+ · Rev +10.3% B · D/E 0.13 B+ · P/E 21.7x B+ · PEG 1.32 B
Why now. Medical Instruments & Supplies · market cap $32.8b. 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 +9% 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.
14. CARG — CarGurus, Inc. · score 82.6
Auto & Truck Dealerships · price $36.88 · 1Y $40.17 · 5Y $58.81 · 10Y $87.24
FCF $315m C · Rev +13.9% B+ · D/E 0.70 B+ · P/E 19.0x B · PEG 1.19 B+
Why now. Auto & Truck Dealerships · market cap $3.3b. 11% 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 +9% 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.
15. EPAM — EPAM Systems, Inc. · score 82.5
Information Technology Services · price $100.29 · 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 +22% 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.
16. LRN — Stride, Inc. · score 82.3
Education & Training Services · price $78.59 · 1Y $84.88 · 5Y $107.16 · 10Y $137.42
FCF $433m C · Rev +4.7% C+ · D/E 0.33 A- · P/E 11.0x 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 $84.88 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $107.16 at ~6% CAGR — dividend + buyback compounding. 10 yr $137.42 if the moat survives secular pressure.
17. APP — AppLovin Corporation · score 81.8
Advertising Agencies · price $303.76 · 1Y $559.00 · 5Y $705.72 · 10Y $905.07
FCF $4.5b B · Rev +60.6% A · D/E 1.11 C+ · P/E 23.4x B · PEG 0.94 B+
Why now. Advertising Agencies · market cap $101.7b. Down 59% 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 +84% 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. $101.7b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Down 59% 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 14.9x 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 ~18% CAGR — dividend + buyback compounding. 10 yr $905.07 if the moat survives secular pressure.
18. PRDO — Perdoceo Education Corporation · score 81.2
Education & Training Services · price $31.88 · 1Y $34.43 · 5Y $43.47 · 10Y $55.75
FCF $221m C · Rev +11.7% B · D/E 0.11 A- · P/E 11.6x A- · PEG 0.67 A-
Why now. Education & Training Services · market cap $2.0b. 17% off the 52-week high of $38.50. Revenue growing +12%, comfortably above the S&P median. PEG 0.67 — paying under fair value for the growth rate.
Moat. Net margin 21% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 17% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 125% 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 $34.43 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $43.47 at ~6% CAGR — dividend + buyback compounding. 10 yr $55.75 if the moat survives secular pressure.
19. CPAY — Corpay, Inc. · score 79.4
Software - Infrastructure · price $409.68 · 1Y $450.64 · 5Y $568.93 · 10Y $729.63
FCF $1.6b C+ · Rev +20.4% A- · D/E 2.75 D · P/E 24.9x B+ · PEG 0.89 B+
Why now. Software - Infrastructure · market cap $26.9b. Trading near 52-week high of $412.24 — 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 +10% 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.
20. WMG — Warner Music Group Corp. · score 79.4
Entertainment · price $24.79 · 1Y $36.88 · 5Y $46.56 · 10Y $59.72
FCF $836m C+ · Rev +12.9% B+ · D/E 4.53 D · P/E 19.8x B · PEG 0.47 A
Why now. Entertainment · market cap $13.0b. Down 30% 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 +49% 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. Down 30% 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 $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.
21. DECK — Deckers Outdoor Corporation · score 79.3
Footwear & Accessories · price $91.20 · 1Y $122.81 · 5Y $155.04 · 10Y $198.84
FCF $1.1b C+ · Rev +7.9% B · D/E 0.21 A- · P/E 13.0x A- · PEG 1.19 B+
Why now. Footwear & Accessories · market cap $12.4b. Down 27% 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 +35% 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.
22. GMED — Globus Medical, Inc. · score 78.9
Medical Devices · price $85.67 · 1Y $103.23 · 5Y $151.14 · 10Y $224.21
FCF $756m C+ · Rev +19.7% B+ · D/E 0.02 A- · P/E 21.9x B+ · PEG 1.49 B
Why now. Medical Devices · market cap $11.5b. 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 +20% upside).
Moat. Net margin 17% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 11% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 141% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon. 1-3 yr $103.23 (analyst consensus (n=13)) — fundamentals + valuation re-rating. 5 yr $151.14 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $224.21 if current growth sustains into durable earnings power.
23. FISV — Fiserv, Inc. · score 78.8
Sector n/a · price $55.50 · 1Y $62.18 · 5Y $78.50 · 10Y $100.67
FCF $3.9b B · Rev +9.3% B · D/E n/a · P/E 10.6x A- · PEG 1.02 B+
Why now. Sector n/a · market cap $29.5b. Down 60% from 52-week high of $140.42 — deep drawdown territory. 28 sell-side analysts rate this a Hold with a mean 1-yr target of $62.18 (implying +12% 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 10% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 140% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 60% 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 $62.18 (analyst consensus (n=28)) — multiple re-rating thesis requires a catalyst. 5 yr $78.50 at ~7% CAGR — dividend + buyback compounding. 10 yr $100.67 if the moat survives secular pressure.
24. ACN — Accenture plc · score 78.6
Information Technology Services · price $180.14 · 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 $110.2b. 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. $110.2b 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. MELI — MercadoLibre, Inc. · score 78.4
Internet Retail · price $1828.29 · 1Y $2,252 · 5Y $3,298 · 10Y $4,892
FCF $12.4b A- · Rev +41.2% A · D/E 1.69 C+ · P/E 49.9x D · PEG 1.12 B+
Why now. Internet Retail · market cap $92.7b. Down 28% from 52-week high of $2548.50 — deep drawdown territory. Revenue growing +41% — in hypergrowth territory. 24 sell-side analysts rate this a Buy with a mean 1-yr target of $2,252 (implying +23% upside).
Moat. ROE 24% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $92.7b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Trailing P/E 50x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. E-commerce competition — Amazon, Walmart, Shein, and Temu have each forced the rest of the category to compete on price, fulfillment speed, or assortment; sustaining margins requires one of those being structurally defended.
Horizon. 1-3 yr $2,252 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $3,298 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $4,892 if current growth sustains into durable earnings power.
26. VEEV — Veeva Systems Inc. · score 78.2
Health Information Services · price $241.51 · 1Y $244.14 · 5Y $357.45 · 10Y $530.25
FCF $1.7b C+ · Rev +16.2% B+ · D/E 0.01 A- · P/E 42.9x C · PEG 1.06 B+
Why now. Health Information Services · market cap $39.2b. Down 22% 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 +1% 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 43x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. P/S 11.8x 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 ~8% CAGR — compounding case rests on the competitive position widening. 10 yr $530.25 if current growth sustains into durable earnings power.
27. META — Meta Platforms, Inc. · score 77.4
Internet Content & Information · price $578.85 · 1Y $754.14 · 5Y $952.09 · 10Y $1,221
FCF $41.0b A · Rev +27.7% A- · D/E 0.43 B+ · P/E 21.8x B · PEG 0.89 B+
Why now. Internet Content & Information · market cap $1.5T. Down 27% from 52-week high of $796.25 — deep drawdown territory. Revenue growing +28% — 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 +30% upside).
Moat. Net margin 30% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 26% — 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.
28. YUMC — Yum China Holdings, Inc. · score 75.5
Restaurants · price $47.90 · 1Y $62.05 · 5Y $90.85 · 10Y $134.77
FCF $940m C+ · Rev +8.8% B · D/E 0.38 A- · P/E 17.5x B+ · PEG 1.21 B
Why now. Restaurants · market cap $16.4b. 18% off the 52-week high of $58.39. 21 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $62.05 (implying +30% upside).
Moat. ROE 18% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 96% 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 $62.05 (analyst consensus (n=21)) — fundamentals + valuation re-rating. 5 yr $90.85 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $134.77 if current growth sustains into durable earnings power.
29. CCK — Crown Holdings, Inc. · score 75.4
Packaging & Containers · price $120.71 · 1Y $136.57 · 5Y $172.42 · 10Y $221.12
FCF $1.2b C+ · Rev +10.3% B · D/E 1.86 C+ · P/E 17.4x B+ · PEG 0.64 A-
Why now. Packaging & Containers · market cap $13.1b. Trading near 52-week high of $122.91 — momentum setup, limited technical margin of safety. Revenue growing +10%, comfortably above the S&P median. PEG 0.64 — paying under fair value for the growth rate. 14 sell-side analysts publish a mean 1-yr target of $136.57 (implying +13% upside).
Moat. ROE 27% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 153% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Trading within 2% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction.
Horizon. 1-3 yr $136.57 (analyst consensus (n=14)) — multiple re-rating thesis requires a catalyst. 5 yr $172.42 at ~7% CAGR — dividend + buyback compounding. 10 yr $221.12 if the moat survives secular pressure.
30. EME — EMCOR Group, Inc. · score 75.3
Engineering & Construction · price $833.40 · 1Y $1,033 · 5Y $1,304 · 10Y $1,673
FCF $1.2b C+ · Rev +18.9% B+ · D/E 0.13 A- · P/E 26.0x B · PEG 0.40 A
Why now. Engineering & Construction · market cap $36.8b. 12% 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 +24% 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 ~9% CAGR — dividend + buyback compounding. 10 yr $1,673 if the moat survives secular pressure.
Methodology footnote
Every pick on this list comes out of the same quality-growth model — one 0–100 score blending quality, growth, and value — applied to every US-listed common stock with a market cap above $1B. Each pick's score breakdown is auditable from the home page — click the ticker on the rankings page to see exactly which grades produced the number. Not investment advice. See terms for full disclosures.