This refresh
Data-driven refresh August 14, 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); 1,806 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 89.6
Software - Application · price $264.02 · 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 0.63 A-
Why now. Adobe’s Digital Media suite—especially Photoshop and Premiere—continues to dominate creators, driving a 11.5% YoY revenue growth while delivering a 28.7% profit margin and a massive ROE of 62.8%. Coupled with a low PEG of 0.63, the business compounds earnings faster than peers, and the Bull Rankings model’s Quality pillar (92) confirms the durability of this moat. The thesis hinges on the Digital Media segment’s ability to keep expanding its subscription base, sustaining compounding cash flow.
Moat. Adobe’s subscription‑based Creative Cloud locks in photographers, video editors, and designers with high switching costs; the integrated workflow across Photoshop, Illustrator, and Premiere forces customers to stay for the ecosystem. This recurring revenue fuels the 62.8% ROE, reflecting pricing power from category leadership in creative software that rivals can’t replicate quickly.
Risk. The Digital Experience segment faces fierce competition from agile, lower‑priced SaaS rivals, and Adobe’s 1.4 beta signals heightened market volatility; a P/E of 15.1, while modest, still assumes continued growth that may falter if subscription churn rises. A sustained slowdown in revenue growth below the current 11.5% would validate the bear view and could trigger a sell‑off, especially if the implied 1% free‑cash‑flow growth from the reverse DCF proves overly optimistic.
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.
2. DLO — DLocal Limited · score 88.6
Software - Infrastructure · price $14.17 · 1Y $18.25 · 5Y $26.72 · 10Y $39.64
FCF $413m C · Rev +46.6% A · D/E 0.12 B+ · P/E 22.1x B+ · PEG 0.67 A-
Why now. DLocal’s 46.6% FY YoY revenue growth is powered by its cross‑border pay‑in platform that lets global merchants capture emerging‑market shoppers, and that growth is underpinned by a 34.6% ROE and $413 m of free cash flow at a modest $4.2 bn market cap, making the current price a launchpad for a multi‑year compounder; the thesis rests on the platform’s ability to keep expanding merchant coverage and transaction volume.
Moat. The pay‑in and pay‑out suite for commerce, ride‑hailing and streaming creates a sticky gateway for merchants who need a single integration to accept hundreds of local payment methods, locking in high‑margin pricing power that drives the 34.6% ROE; switching costs are steep because each market requires distinct regulatory and settlement infrastructure that DLocal already owns.
Risk. The reverse‑DCF shows the market pricing in a -6% annual free‑cash‑flow decline for the next decade, a stark contrast to the 46.6% revenue surge, and the model flags diluting shareholders, meaning future equity issuances could erode per‑share returns; a slowdown in merchant adoption or a higher‑than‑expected dilution would validate the bear case and crush the upside.
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.
3. HRMY — Harmony Biosciences Holdings, Inc. · score 88.4
Biotechnology · price $38.12 · 1Y $46.10 · 5Y $67.50 · 10Y $100.12
FCF $355m C · Rev +24.3% A- · D/E 0.16 B+ · P/E 12.3x A · PEG 0.44 A
Why now. The bull case hinges on WAKIX’s dominant position in the U.S. narcolepsy market, where its novel mechanism drives a premium price that fuels a 18.9% profit margin and a 24.3% revenue growth YoY. Coupled with a low debt‑to‑equity of 0.16, the business can reinvest cash into Phase‑3 trials for Prader‑Willi Syndrome, compounding earnings at a rate that outpaces peers. The thesis rests on sustaining this high‑margin growth trajectory.
Moat. WAKIX’s exclusive FDA‑approved status for excessive daytime sleepiness creates a high switching cost for patients and neurologists, locking in a captive payer base and enabling pricing power that underpins the 18.1% ROE. The company’s pipeline of pitolisant extensions (Phase‑2 GR and HD formulations) further entrenches its IP moat, making it difficult for generic competitors to replicate the drug’s unique pharmacology.
Risk. The bear case focuses on execution risk in the Phase‑3 Prader‑Willi trial; a failure would stall pipeline momentum and leave the company overly reliant on a single commercial product. The current PE of 12.3 already reflects optimism, and the reverse‑DCF implies a -18% annual free‑cash‑flow growth rate, meaning any slowdown in revenue growth would immediately pressure valuation. A negative trial readout would trigger a sharp price correction toward the 52‑week low of $25.52.
Horizon. 1-3 yr $46.10 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $67.50 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $100.12 if current growth sustains into durable earnings power.
4. NBIX — Neurocrine Biosciences, Inc. · score 88.1
Drug Manufacturers - Specialty & Generic · price $152.72 · 1Y $213.13 · 5Y $312.04 · 10Y $462.89
FCF $870m C+ · Rev +34.4% A · D/E 0.12 B+ · P/E 22.3x B+ · PEG 0.49 A
Why now. The bull case hinges on NBIX’s market‑leading uterine‑fibroid therapy Oriahnn, which is unlocking a fast‑growing women’s‑health niche and driving a 34.4% YoY revenue surge. Coupled with a 20.9% profit margin and a free‑cash‑flow generation of $870 m, the business compounds earnings at a pace that far exceeds the sector average, making the current price a launchpad for sustained upside.
Moat. NBIX’s moat stems from its deep IP portfolio around Oriahnn and INGREZZA, giving it exclusive access to high‑margin specialty‑drug pricing and a captive specialist‑physician network that is costly for rivals to replicate. The 19.1% ROE reflects pricing power derived from being the sole FDA‑approved oral therapy for uterine fibroids in the U.S., reinforcing durable cash‑flow generation.
Risk. The bear case centers on the lofty valuation: a forward P/E of 22.3 implies the market is already pricing in aggressive growth, and any slowdown from the current 34.4% revenue pace would compress margins and force the stock toward its 52‑week low of $122.14. A miss on Oriahnn’s rollout or competitive entry would trigger a sharp re‑rating.
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.
5. PGY — Pagaya Technologies Ltd. · score 86.2
Software - Infrastructure · price $21.56 · 1Y $28.80 · 5Y $42.17 · 10Y $62.55
FCF $252m C · Rev +25.6% A- · D/E 1.34 C · P/E 15.3x A- · PEG 0.04 A
Why now. Pagaya’s Decline Monetization platform is scaling the high‑margin loan‑origination market, driving a 25.6% YoY revenue jump, a 9.1% profit margin, and a $252 m free‑cash‑flow that fuels a 19.5% ROE—our model’s strongest pillar, Value, is 99, showing the stock is priced for a high‑growth, high‑margin play. The platform’s AI engine automatically routes rejected loan applications to a network of partners, creating a network effect that locks in institutional clients and keeps churn low. With a current P/E of 15.3 and a reverse‑DCF implying only –14% free‑cash‑flow growth, the price already assumes aggressive upside; if the company sustains its 25.6% revenue growth, it can deliver the 15%+ CAGR the 5‑year target requires, making the thesis rest on the platform’s ability to keep expanding its partner network and margin profile.
Moat. The moat is the proprietary AI that evaluates loan applications in real time—Dual Look and First Look—providing instant, accurate risk assessment that competitors cannot replicate quickly. This technology creates a high switching cost for banks and lenders, who must integrate the platform to avoid missing profitable loan opportunities. The resulting network effect locks in institutional partners, reinforcing Pagaya’s market position and driving recurring revenue.
Risk. The bear case hinges on the high beta of 5.37, signaling market volatility that could erode earnings if the loan‑origination cycle slows. A debt‑to‑equity of 1.34 raises leverage concerns if interest rates rise, potentially squeezing margins. The P/E of 15.3, while modest, is still above the sector median, and the reverse‑DCF’s –14% implied growth suggests the market is already pricing in significant upside; any slowdown in revenue growth below 25% would quickly invalidate the bull thesis.
Horizon. 1-3 yr $28.80 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $42.17 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $62.55 if current growth sustains into durable earnings power.
6. INTU — Intuit Inc. · score 86.1
Software - Application · price $345.66 · 1Y $451.32 · 5Y $660.78 · 10Y $980.22
FCF $7.8b B+ · Rev +15.1% B+ · D/E 0.33 B · P/E 21.1x B+ · PEG 0.87 B+
Why now. Intuit’s QuickBooks ecosystem is the engine of relentless compounding, with 15.1% YoY revenue growth driven by SMB adoption of its cloud‑based accounting, payroll and payment suite, while generating $7.8 B of free cash flow and delivering a stellar 22.2% ROE. Our model’s strongest pillar – Growth (90) – confirms that the business can keep expanding its sticky SaaS base, and the newly announced dividend increase adds a shareholder‑friendly catalyst. The thesis rests on the ability of QuickBooks and Mailchimp to lock in small‑ and mid‑market firms for the long haul, compounding earnings at a rate that far exceeds the market’s modest expectations.
Moat. The moat lives in the integrated QuickBooks platform: SMBs rely on a single login for accounting, payroll, merchant processing and financing, creating high switching costs and a data moat that rivals can’t replicate quickly. This lock‑in fuels the 22.2% ROE, as Intuit can price premium services and cross‑sell Mailchimp without cannibalizing its core revenue.
Risk. The market is pricing Intuit at a lofty PE of 21.1 despite a reverse‑DCF implying a negative 2% free‑cash‑flow growth trajectory, which is wildly at odds with the 15.1% revenue expansion and 21.9% profit margin. If growth stalls or margin pressure mounts, the valuation gap will collapse, and the dividend raise could become unsustainable. A sustained slowdown in SMB spending would trigger the bear case.
Horizon. 1-3 yr $451.32 (analyst consensus (n=33)) — fundamentals + valuation re-rating. 5 yr $660.78 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $980.22 if current growth sustains into durable earnings power.
7. NVDA — NVIDIA Corporation · score 86.1
Semiconductors · price $225.16 · 1Y $302.83 · 5Y $443.37 · 10Y $657.71
FCF $119.1b A · Rev +70.7% A · D/E 0.07 B+ · P/E 34.5x B · PEG 0.60 A-
Why now. NVIDIA’s AI‑driven Compute & Networking platform is cementing its role as the de‑facto engine for data‑center scale workloads, and that engine is scaling at a breakneck clip. Revenue is soaring +70.7% YoY, free cash flow tops $119.1 B, and profit margins sit at a staggering 63%, all of which fuel a self‑reinforcing cycle of R&D spend and market share gain. The thesis rests on the relentless compounding of AI infrastructure demand that powers the next wave of enterprise compute.
Moat. NVIDIA’s moat lives in its GPU‑centric architecture that underpins every major AI model, creating a high switching cost for hyperscale cloud providers and enterprise data centers that rely on its Compute & Networking stack. The 81.7% ROE reflects pricing power derived from category leadership in accelerated computing, while its extensive software ecosystem (CUDA, AI libraries) locks customers into a proprietary stack that rivals cannot replicate quickly.
Risk. The stock trades at a lofty PE of 34.5 and a beta of 2.21, meaning any slowdown in AI spend or a broader market pull‑back could hammer valuation. Our reverse DCF assumes a 51% annual FCF growth for a decade—far below the current 70.7% revenue surge—so any deceleration toward the implied growth rate would expose the premium. A breach of the 52‑week low ($164.07) would signal that the market is re‑pricing this optimism.
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.
8. GDDY — GoDaddy Inc. · score 85.7
Software - Infrastructure · price $94.91 · 1Y $104.80 · 5Y $153.44 · 10Y $227.61
FCF $1.7b C+ · Rev +7.4% B · D/E n/a · P/E 14.1x A- · PEG 0.68 A-
Why now. GoDaddy’s Applications & Commerce suite—especially the Websites + Marketing and Managed WordPress platforms—is driving a resilient 7.4% YoY revenue growth while delivering a healthy 17.8% profit margin and generating $1.7 B of free cash flow. These fundamentals underpin a high‑quality business that can keep compounding earnings, and the upside is locked in the analyst consensus 1‑yr target of $104.80. The thesis hinges on the continued expansion of its SaaS‑based web‑building tools that lock customers into recurring revenue.
Moat. The Core Platform underpins the A&C suite, providing a unified infrastructure that makes it costly for customers to migrate away from GoDaddy’s managed WordPress and e‑commerce tools, creating a sticky subscription base and high switching costs. This integrated cloud stack gives GoDaddy a cost advantage and rapid feature rollout that rivals can’t match quickly.
Risk. The Bull Rankings model flags a reverse‑DCF implied free‑cash‑flow growth of –16%/yr, far below the actual 7.4% revenue growth; the market is already pricing in overly optimistic cash‑flow assumptions, so any slowdown would crush valuation. A modest P/E of 14.1 leaves little margin for error, and a beta of 0.92 offers limited upside protection if growth stalls. A miss on quarterly SaaS adoption would confirm the bear case.
Horizon. 1-3 yr $104.80 (analyst consensus (n=15)) — fundamentals + valuation re-rating. 5 yr $153.44 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $227.61 if current growth sustains into durable earnings power.
9. DOCS — Doximity, Inc. · score 84.3
Health Information Services · price $24.80 · 1Y $29.11 · 5Y $42.62 · 10Y $63.23
FCF $306m C · Rev +11.2% B · D/E 0.01 A · P/E 29.5x B · PEG 0.59 A-
Why now. Doximity's digital platform, deeply embedded in medical professionals' workflows with tools like Ask and Scribe, represents a high-quality compounder, underscored by our model's leading Quality score of 88 within its 84.3/100 quality-growth rating. The company's impressive 25.5% profit margin and substantial $306m in free cash flow demonstrate its operational efficiency and monetization power. With the market currently implying only ~6%/yr free-cash-flow growth over the next decade, well below its reported 11.2% FY YoY revenue growth, there's a clear disconnect that undervalues Doximity's ability to expand its high-margin sponsored content business. The thesis hinges on the sustained growth and monetization of its indispensable network of U.S. medical professionals.
Moat. Doximity's durable edge is built on a powerful network effect among U.S. medical professionals, where its personalized newsfeed and professional updates foster deep engagement and create high switching costs once integrated into daily routines. The provision of HIPAA-compliant workflow tools such as Ask, an AI assistant, and Scribe further entrenches the platform within clinical workflows, making it an essential utility rather than a discretionary service. This unique positioning allows Doximity to attract and retain sponsored content from pharmaceutical manufacturers and health systems, solidifying its revenue streams against competitive threats.
Risk. The primary risk for Doximity lies in its valuation, which at a P/E of 29.5 appears stretched given its 11.2% FY YoY revenue growth, especially when considering the significant decline from its 52-week high of $76.51. While profitable, the company's reliance on sponsored content from pharmaceutical manufacturers and health systems could face headwinds from shifts in healthcare marketing budgets or increased competition for digital advertising spend. A sustained deceleration in new user engagement or a contraction in average revenue per user would confirm the bear thesis, indicating that the platform's monetization potential is peaking.
Horizon. 1-3 yr $29.11 (analyst consensus (n=18)) — fundamentals + valuation re-rating. 5 yr $42.62 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $63.23 if current growth sustains into durable earnings power.
10. APP — AppLovin Corporation · score 84.1
Advertising Agencies · price $315.44 · 1Y $553.47 · 5Y $810.33 · 10Y $1,202
FCF $4.5b B · Rev +60.6% A · D/E 1.11 C+ · P/E 24.2x C+ · PEG 0.85 B+
Why now. The bull case hinges on MAX’s AI‑driven in‑app bidding engine, which is capturing an ever‑larger slice of the mobile ad spend market as developers chase higher eCPMs; this is underpinned by 60.6% FY YoY revenue growth, a razor‑thin 64.6% profit margin that shows pricing power, and $4.5B of free cash flow that fuels relentless reinvestment. Those levers together promise compounding top‑line expansion that will keep the growth pillar of our model at a blistering 96, making the current price a premium bet on sustained outperformance.
Moat. APP’s moat lives in the MAX real‑time auction platform and the Axon Ads Manager suite, which lock developers into a data‑rich, AI‑optimized workflow that is costly to replicate; the network effect of more publishers feeding richer inventory back into the auction raises floor prices for every participant, creating a virtuous cycle that entrenches APP’s pricing advantage and protects its 64.6% margin.
Risk. The bear case centers on the lofty valuation implied by a 24.2 × PE and a beta of 2.53, suggesting the market is pricing in continued 14% free‑cash‑flow growth—far above the already blistering 60.6% revenue surge; any slowdown in ad spend or a successful AI challenger could compress margins and push the PE toward historic lows, confirming the risk that the high multiple is unsustainable, especially given that Value is our model's weakest pillar at 69.
Horizon. 1-3 yr $553.47 (analyst consensus (n=30)) — fundamentals + valuation re-rating. 5 yr $810.33 at ~21% CAGR — compounding case rests on the competitive position widening. 10 yr $1,202 if current growth sustains into durable earnings power.
11. EXLS — ExlService Holdings, Inc. · score 82.9
Information Technology Services · price $34.81 · 1Y $44.38 · 5Y $64.97 · 10Y $96.38
FCF $297m C · Rev +13.4% B+ · D/E 0.57 C+ · P/E 22.0x B+ · PEG 1.02 B+
Why now. EXLS is a premier AI‑driven digital‑operations provider for the insurance industry, where its claims‑management and underwriting analytics platform is scaling at 13.4% YoY revenue growth. The business converts that growth into high profitability – 11.7% profit margin and a stellar 32.3% ROE – while generating $297 m of free cash flow and a PEG of 1.02, indicating a fairly priced growth story. Our Bull Rankings model rates its Growth pillar at 88, the strongest of the three, and the current price only embeds a 4% FCF growth assumption (reverse DCF), well below the actual revenue trajectory, leaving ample upside.
Moat. The moat comes from deep integration of EXLS’s AI analytics into insurers’ core workflows – claims processing, premium administration and risk modeling – creating high switching costs and pricing power that fuels its 32.3% ROE. These services are mission‑critical, data‑intensive and require domain expertise that competitors cannot replicate quickly, locking in long‑term contracts across North America, Europe and the UK.
Risk. The bear case hinges on a potential slowdown in insurance spend, which would compress the 13.4% growth rate and pressure the 22× P/E multiple that already reflects premium valuation. A dip in margin or a rise in debt (currently 0.57 D/E) would erode the high ROE, and any failure to sustain growth would validate the market’s modest 4% implied FCF growth assumption. A sustained revenue deceleration below 10% YoY would 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.
12. CARG — CarGurus, Inc. · score 82.5
Auto & Truck Dealerships · price $37.44 · 1Y $40.17 · 5Y $58.81 · 10Y $87.24
FCF $315m C · Rev +13.9% B+ · D/E 0.70 B+ · P/E 19.3x B · PEG 1.19 B+
Why now. CarGurus’ Digital Deal platform is turning its massive shopper audience into a repeat‑purchase engine, fueling a 13.9% YoY revenue growth while preserving a 18.2% profit margin and delivering a staggering 66.6% ROE. Our model’s Quality pillar of 88 underscores the durability of this online marketplace, and the buy‑back signal adds upside. The thesis rests on the compounding power of Digital Deal‑enabled transactions continuing to lift earnings.
Moat. The platform’s integrated dealer subscription and advertising suite locks dealers into a data‑rich marketplace, creating switching costs for both sellers and buyers. That network effect, combined with the 66.6% ROE generated from pricing power on dealer fees, gives CarGurus a cost advantage that rivals can’t replicate quickly.
Risk. The Bull Rankings model flags Value as the weakest pillar, and the reverse‑DCF shows the current price implies a -2% annual free‑cash‑flow growth, starkly below the 13.9% revenue expansion—suggesting optimism is already baked in. A P/E of 19.3 and beta of 1.17 amplify sensitivity to a market pullback, and a debt‑to‑equity of 0.7 could constrain flexibility. A sustained slowdown in Digital Deal adoption would validate the bear case.
Horizon. 1-3 yr $40.17 (analyst consensus (n=12)) — fundamentals + valuation re-rating. 5 yr $58.81 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $87.24 if current growth sustains into durable earnings power.
13. EPAM — EPAM Systems, Inc. · score 82.5
Information Technology Services · price $100.50 · 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 0.53 A-
Why now. EPAM’s platform‑engineering and AI‑driven cloud services are the engine of its next growth wave, feeding a 10.8% YoY revenue increase while delivering $483 m of free‑cash‑flow on a modest 0.04 debt‑to‑equity balance. At a 13.6× P/E and a current price of $100.50, the stock is already priced for a mere 1% annual FCF growth over the next decade – far below the real growth trajectory, leaving ample upside. The whole thesis rests on the durability of its digital‑platform engineering franchise continuing to compound revenue at double‑digit rates.
Moat. EPAM’s end‑to‑end engineering practice locks in large enterprise clients through deep integration of requirements analysis, migration, and AI‑enabled analytics, creating high switching costs and recurring billings. Its low‑leverage balance sheet (debt‑to‑equity 0.04) fuels share‑repurchase programs that amplify ROE, while the breadth of its cloud and cybersecurity services makes it a one‑stop shop that competitors can’t replicate quickly.
Risk. The market is pricing EPAM for only 1% FCF growth despite a solid 10.8% revenue expansion, meaning any slowdown or margin compression would expose a valuation gap; a high beta of 1.37 amplifies downside in a tech‑selloff, and the modest 11.4% ROE suggests limited pricing power. A sustained miss on revenue growth or a spike in operating costs would validate the bear view and trigger a sharp price correction.
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.
14. RMD — ResMed Inc. · score 82.2
Medical Instruments & Supplies · price $224.46 · 1Y $247.20 · 5Y $361.93 · 10Y $536.89
FCF $1.6b C+ · Rev +9.9% B · D/E 0.13 B+ · P/E 21.5x B+ · PEG 1.32 B
Why now. ResMed is a high-quality compounder capitalizing on the persistent global demand for respiratory disorder management, particularly sleep apnea, earning our model's impressive quality-growth score of 82.2/100. Anchored by a "Quality" pillar score of 90/100, its robust fundamentals include a 26.9% profit margin and a 23.1% ROE. With revenue still expanding at 9.9% year-over-year and generating $1.6B in free cash flow (TTM), the company is well-positioned for continued investment and shareholder returns. The crux is the enduring need for its specialized diagnostic devices like ApneaLink Air and NightOwl, alongside its residential care software, driving consistent, profitable growth.
Moat. ResMed's durable edge stems from its specialized medical devices and integrated cloud-based software applications, which create significant switching costs for clinics, hospitals, and residential care providers. Its category leadership in diagnosing and treating sleep apnea, exemplified by products like ApneaLink Air and the portable NightOwl, allows for strong pricing power and deep customer relationships. This specialized focus and embedded technology are key drivers behind its impressive 23.1% ROE, making it difficult for competitors to quickly replicate its comprehensive ecosystem.
Risk. Skeptics point to ResMed's valuation, where our model's "Value" pillar scores a relatively weaker 76/100 compared to its peers. The current price implies approximately 5%/year free-cash-flow growth sustained for 10 years, which, while below its current 9.9% revenue growth, still requires consistent execution in a competitive medical device landscape. The primary risk is intensified competition or pricing pressure in the Sleep and Breathing Health segment, potentially eroding its 26.9% profit margin. A sustained deceleration in new patient diagnoses or adoption of its residential care software would confirm the bear case, indicating market saturation or loss of competitive edge.
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.
15. LRN — Stride, Inc. · score 82
Education & Training Services · price $83.36 · 1Y $90.03 · 5Y $113.66 · 10Y $145.77
FCF $433m C · Rev +4.7% C+ · D/E 0.33 A- · P/E 11.7x A- · PEG 0.48 A
Why now. Education & Training Services · market cap $3.5b. Down 51% 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 51% 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 $90.03 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $113.66 at ~6% CAGR — dividend + buyback compounding. 10 yr $145.77 if the moat survives secular pressure.
16. ADMA — ADMA Biologics, Inc. · score 81.7
Biotechnology · price $9.47 · 1Y $17.00 · 5Y $21.46 · 10Y $27.52
FCF $116m C · Rev +8.0% B · D/E 1.11 C · P/E 13.5x A- · PEG 0.58 A-
Why now. Biotechnology · market cap $2.1b. Down 54% from 52-week high of $20.46 — deep drawdown territory. PEG 0.58 — paying under fair value for the growth rate. 5 sell-side analysts rate this a Buy with a mean 1-yr target of $17.00 (implying +80% upside).
Moat. Net margin 33% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 41% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. Pharma moat is patent runway + pipeline depth — a single approved molecule funds the next generation of bets. Late-stage trials carry binary readouts that swing valuation 30%+.
Risk. 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. Trial-readout binary — late-stage clinical trials carry approve/reject outcomes that swing valuation 30%+; the equity is effectively a portfolio of these binary events, not a steady cash-flow business.
Horizon. 1-3 yr $17.00 (analyst consensus (n=5)) — multiple re-rating thesis requires a catalyst. 5 yr $21.46 at ~18% CAGR — dividend + buyback compounding. 10 yr $27.52 if the moat survives secular pressure.
17. PRDO — Perdoceo Education Corporation · score 81.2
Education & Training Services · price $32.01 · 1Y $34.57 · 5Y $43.64 · 10Y $55.97
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 $34.57 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $43.64 at ~6% CAGR — dividend + buyback compounding. 10 yr $55.97 if the moat survives secular pressure.
18. FISV — Fiserv, Inc. · score 79.9
Sector n/a · price $54.39 · 1Y $62.18 · 5Y $78.50 · 10Y $100.67
FCF $3.9b B · Rev +9.3% B · D/E n/a · P/E 10.4x A- · PEG 1.00 B+
Why now. Sector n/a · market cap $28.9b. Down 61% 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 +14% 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 61% 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 ~8% CAGR — dividend + buyback compounding. 10 yr $100.67 if the moat survives secular pressure.
19. CPAY — Corpay, Inc. · score 79.3
Software - Infrastructure · price $417.60 · 1Y $450.64 · 5Y $568.93 · 10Y $729.63
FCF $1.6b C+ · Rev +20.4% A- · D/E 2.75 D · P/E 25.4x B+ · PEG 0.89 B+
Why now. Software - Infrastructure · market cap $27.4b. Trading near 52-week high of $425.95 — momentum setup, limited technical margin of safety. Revenue growing +20%, comfortably above the S&P median. PEG 0.89 — paying under fair value for the growth rate. 14 sell-side analysts rate this a Buy with a mean 1-yr target of $450.64 (implying +8% 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 2% 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 ~6% CAGR — dividend + buyback compounding. 10 yr $729.63 if the moat survives secular pressure.
20. DECK — Deckers Outdoor Corporation · score 79.1
Footwear & Accessories · price $93.09 · 1Y $122.81 · 5Y $155.04 · 10Y $198.84
FCF $1.1b C+ · Rev +7.9% B · D/E 0.21 A- · P/E 13.2x A- · PEG 1.19 B+
Why now. Footwear & Accessories · market cap $12.7b. Down 26% 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 +32% 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.
21. GMED — Globus Medical, Inc. · score 78.9
Medical Devices · price $85.90 · 1Y $103.23 · 5Y $151.14 · 10Y $224.21
FCF $756m C+ · Rev +19.7% B+ · D/E 0.02 A- · P/E 22.0x B+ · PEG 1.49 B
Why now. Medical Devices · market cap $11.5b. 15% off the 52-week high of $101.40. Revenue growing +20%, comfortably above the S&P median. 13 sell-side analysts rate this a Buy with a mean 1-yr target of $103.23 (implying +20% upside).
Moat. Net margin 17% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 11% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 141% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon. 1-3 yr $103.23 (analyst consensus (n=13)) — fundamentals + valuation re-rating. 5 yr $151.14 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $224.21 if current growth sustains into durable earnings power.
22. ACN — Accenture plc · score 78.6
Information Technology Services · price $176.89 · 1Y $178.89 · 5Y $225.85 · 10Y $289.64
FCF $12.6b A- · Rev +6.7% C+ · D/E 0.25 B · P/E 14.1x A- · PEG 1.31 B
Why now. Information Technology Services · market cap $108.2b. Down 39% from 52-week high of $291.09 — deep drawdown territory. 25 sell-side analysts rate this a Buy with a mean 1-yr target of $178.89 (implying +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. $108.2b 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 39% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon. 1-3 yr $178.89 (analyst consensus (n=25)) — multiple re-rating thesis requires a catalyst. 5 yr $225.85 at ~5% CAGR — dividend + buyback compounding. 10 yr $289.64 if the moat survives secular pressure.
23. META — Meta Platforms, Inc. · score 78.4
Internet Content & Information · price $589.85 · 1Y $754.14 · 5Y $952.09 · 10Y $1,221
FCF $41.0b A · Rev +27.7% A- · D/E 0.43 B+ · P/E 22.2x B · PEG 0.86 B+
Why now. Internet Content & Information · market cap $1.5T. Down 26% from 52-week high of $796.25 — deep drawdown territory. Revenue growing +28% — in hypergrowth territory. PEG 0.86 — 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 +28% 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.
24. MELI — MercadoLibre, Inc. · score 78.3
Internet Retail · price $1844.58 · 1Y $2,252 · 5Y $3,298 · 10Y $4,892
FCF $12.4b A- · Rev +41.2% A · D/E 1.69 C+ · P/E 50.2x D · PEG 1.12 B+
Why now. Internet Retail · market cap $93.5b. Down 28% from 52-week high of $2548.50 — deep drawdown territory. Revenue growing +41% — in hypergrowth territory. 24 sell-side analysts rate this a Buy with a mean 1-yr target of $2,252 (implying +22% upside).
Moat. ROE 24% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $93.5b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Trailing P/E 50.2x 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 ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $4,892 if current growth sustains into durable earnings power.
25. VEEV — Veeva Systems Inc. · score 78.1
Health Information Services · price $243.75 · 1Y $244.14 · 5Y $357.45 · 10Y $530.25
FCF $1.7b C+ · Rev +16.2% B+ · D/E 0.01 A- · P/E 43.3x C · PEG 1.09 B+
Why now. Health Information Services · market cap $39.6b. Down 21% 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 +0% 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 11.9x 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.
26. WMG — Warner Music Group Corp. · score 77.6
Entertainment · price $25.65 · 1Y $36.88 · 5Y $46.56 · 10Y $59.72
FCF $836m C+ · Rev +12.9% B+ · D/E 4.53 D · P/E 20.5x B · PEG 0.47 A
Why now. Entertainment · market cap $13.4b. Down 28% 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 +44% 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.
27. DXCM — DexCom, Inc. · score 77.4
Medical Devices · price $89.75 · 1Y $94.12 · 5Y $137.80 · 10Y $204.42
FCF $1.4b C+ · Rev +15.5% B+ · D/E 0.53 B · P/E 35.5x C+ · PEG 1.71 C+
Why now. Medical Devices · market cap $33.9b. Trading near 52-week high of $91.93 — momentum setup, limited technical margin of safety. Revenue growing +16%, comfortably above the S&P median. 25 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $94.12 (implying +5% upside).
Moat. Net margin 20% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 38% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 141% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Trading within 2% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Beta 1.41 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 35x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $94.12 (analyst consensus (n=25)) — fundamentals + valuation re-rating. 5 yr $137.80 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $204.42 if current growth sustains into durable earnings power.
28. CCK — Crown Holdings, Inc. · score 75.4
Packaging & Containers · price $119.02 · 1Y $136.57 · 5Y $172.42 · 10Y $221.12
FCF $1.2b C+ · Rev +10.3% B · D/E 1.86 C+ · P/E 17.1x B+ · PEG 0.64 A-
Why now. Packaging & Containers · market cap $12.9b. 3% off the 52-week high of $122.91. 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 +15% 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. 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 $136.57 (analyst consensus (n=14)) — multiple re-rating thesis requires a catalyst. 5 yr $172.42 at ~8% CAGR — dividend + buyback compounding. 10 yr $221.12 if the moat survives secular pressure.
29. TPR — Tapestry, Inc. · score 75.4
Luxury Goods · price $128.98 · 1Y $168.20 · 5Y $212.35 · 10Y $272.33
FCF $1.8b C+ · Rev +14.2% B+ · D/E 5.71 D · P/E 17.7x B+ · PEG 0.31 A
Why now. Luxury Goods · market cap $25.7b. Down 22% from 52-week high of $164.80 — deep drawdown territory. Revenue growing +14%, comfortably above the S&P median. PEG 0.31 — paying under fair value for the growth rate. 20 sell-side analysts rate this a Buy with a mean 1-yr target of $168.20 (implying +30% upside).
Moat. Net margin 19% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. FCF converts 119% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. D/E 5.71 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer.
Horizon. 1-3 yr $168.20 (analyst consensus (n=20)) — multiple re-rating thesis requires a catalyst. 5 yr $212.35 at ~10% CAGR — dividend + buyback compounding. 10 yr $272.33 if the moat survives secular pressure.
30. YUMC — Yum China Holdings, Inc. · score 75.4
Restaurants · price $47.59 · 1Y $62.05 · 5Y $90.85 · 10Y $134.77
FCF $940m C+ · Rev +8.8% B · D/E 0.38 A- · P/E 17.4x B+ · PEG 1.20 B+
Why now. Restaurants · market cap $16.3b. 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.
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.