This refresh
Data-driven refresh August 18, 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 (5,243 tickers); 1,711 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. DLO — DLocal Limited · score 90.7
Software - Infrastructure · price $13.91 · 1Y $18.35 · 5Y $26.87 · 10Y $39.85
FCF $413m C · Rev +46.6% A · D/E 0.12 B+ · P/E 20.5x B+ · PEG 0.65 A-
Why now. DLocal’s cross‑border pay‑in platform for global merchants is the engine of a 46.6% revenue growth rate, feeding a 34.6% ROE that proves pricing power, while its $413 m free‑cash‑flow generation underpins a sustainable earnings base; the combination of explosive top‑line growth and cash conversion makes the stock a high‑compounding growth story, and the thesis hinges on the platform’s continued expansion across e‑commerce, streaming and ride‑hailing.
Moat. The moat lives in DLocal’s unified payment stack that lets merchants accept local cards, bank transfers, cash and hundreds of alternative payment methods, creating deep integration and switching costs for platforms that need to serve fragmented emerging‑market consumers; this stickiness translates into a ROE above 30% because the company can command premium pricing on a critical, hard‑to‑replicate infrastructure.
Risk. The bear case centers on the model’s signal that shareholders are being diluted and the reverse DCF implying a negative ‑9% annual free‑cash‑flow growth assumption, which is at odds with the current 46.6% revenue surge and suggests the market may be over‑pricing future cash generation; a slowdown in merchant adoption or a rise in competition would force the P/E of 20.5 to look stretched and could trigger a sharp correction.
Horizon. 1-3 yr $18.35 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $26.87 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $39.85 if current growth sustains into durable earnings power.
2. ADBE — Adobe Inc. · score 89.6
Software - Application · price $254.04 · 1Y $269.72 · 5Y $394.90 · 10Y $585.81
FCF $10.3b A- · Rev +11.5% B · D/E 0.61 C+ · P/E 14.5x A- · PEG 0.64 A-
Why now. Adobe’s Digital Media suite – especially Photoshop and Premiere – continues to lock in creators and marketers, driving a 11.5% YoY revenue growth while delivering a 28.7% profit margin and a massive ROE of 62.8%. Our model’s Quality pillar (92) underscores the durability of this cash‑generating engine, and the stock’s current price already embeds a 0% free‑cash‑flow growth assumption over the next decade, making any upside hinge on sustaining the 11.5% growth rate. The thesis rests on Adobe’s ability to keep compounding earnings through subscription lock‑in and expanding the Digital Experience platform.
Moat. The subscription‑based Creative Cloud creates high switching costs for photographers, video editors, and designers, while the integrated Digital Experience platform locks brands into a single analytics‑to‑commerce stack, preserving Adobe’s pricing power that fuels its 62.8% ROE. Continuous feature upgrades and ecosystem integration make it hard for rivals to lure away entrenched enterprise customers.
Risk. A bear sees the 0% implied FCF growth from the reverse‑DCF as a red flag: the market already assumes no acceleration despite a modest 11.5% revenue growth, and a 1.4 beta plus a 0.61 debt‑to‑equity ratio could amplify downside if macro‑tech spending stalls, compressing margins below the current 28.7%. A sustained slowdown in Digital Media subscriptions would push the P/E of 14.5 into overvaluation territory and trigger share‑price pressure.
Horizon. 1-3 yr $269.72 (analyst consensus (n=34)) — fundamentals + valuation re-rating. 5 yr $394.90 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $585.81 if current growth sustains into durable earnings power.
3. HRMY — Harmony Biosciences Holdings, Inc. · score 88.2
Biotechnology · price $38.14 · 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 narcolepsy market and its pipeline extensions into Prader‑Willi and Myotonic Dystrophy, which together fuel a 24.3% YoY revenue growth, a 18.9% profit margin and a PE of 12.3x. Our Bull Rankings model rates HRMY at an 88.2 quality‑growth score, with Value as the strongest pillar, underscoring that the stock is cheap relative to its earnings power. The thesis rests on compounding cash‑flow generation as the pipeline graduates to commercial launch, keeping growth alive for the next decade.
Moat. HRMY’s moat derives from the patented novel mechanism of pitolisant, giving WAKIX a first‑in‑class status that creates high switching costs for patients and prescribers in the rare‑neurology space. This IP advantage translates into a 18.1% ROE driven by pricing power and limited direct competition, while the low debt‑to‑equity of 0.16 lets the company reinvest cash into R&D without dilution.
Risk. The bear case centers on pipeline execution risk: if Phase 3 for Prader‑Willi or Phase 2 for Myotonic Dystrophy falters, growth could stall despite the current 24.3% revenue expansion. Moreover, the Bull Rankings reverse‑DCF assumes a -18% annual free‑cash‑flow growth, a stark mismatch to the actual revenue trajectory, implying the market may be over‑optimistic. A missed trial readout would trigger a sharp re‑rating and break the upside narrative.
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 87.8
Drug Manufacturers - Specialty & Generic · price $154.49 · 1Y $211.57 · 5Y $309.76 · 10Y $459.51
FCF $870m C+ · Rev +34.4% A · D/E 0.12 B+ · P/E 22.6x B+ · PEG 0.45 A
Why now. INGREZZA is the compounding engine — the company’s 34.4% revenue growth is turbocharged by a franchise that now covers two FDA‑approved indications (tardive dyskinesia and chorea in Huntington’s disease) and a pipeline that keeps extending the label’s reach. The 20.9% profit margin proves the model scales: each incremental dollar of revenue drops straight to the bottom line, and the $870m TTM free cash flow funds buybacks that shrink the share count while earnings per share outgrow revenue. The crux is simple: INGREZZA’s market share in movement disorders is sticky, and Neurocrine’s next‑gen candidates (like NBI‑1076986) lock in pricing power before generics can erode the franchise.
Moat. The moat is the FDA’s label exclusivity on INGREZZA’s two indications, which creates a 6‑year runway before any biosimilar or generic threat can legally enter. ROE of 19.1% is driven by pricing power in a specialty neurology niche where payers tolerate premium pricing for a drug with no meaningful alternatives — competitors like Austedo (Teva) are limited to Huntington’s chorea, leaving tardive dyskinesia as INGREZZA’s monopoly. Distribution is locked via neurologist and psychiatrist networks that resist switching once a patient is stabilized, and the pipeline (Osavampator, NBI‑1117568) targets adjacent disorders, widening the moat with each new label.
Risk. The bear case is dilution risk: management’s decision to fund R&D and acquisitions with equity issuance erodes the per‑share benefits of INGREZZA’s cash flow, and the debt‑to‑equity of 0.12 is creeping toward levels that could crowd out buybacks. The P/E of 22.6x is rich for a growth stock, and if INGREZZA’s revenue growth decelerates below 20% (a real risk as the base grows), the multiple collapses. The signal that would break the bull thesis is a quarter where INGREZZA’s prescription growth stalls or a pipeline setback forces a secondary offering — either would confirm that the growth story is maturing faster than the stock price assumes.
Horizon. 1-3 yr $211.57 (analyst consensus (n=27)) — fundamentals + valuation re-rating. 5 yr $309.76 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $459.51 if current growth sustains into durable earnings power.
5. PGY — Pagaya Technologies Ltd. · score 86.2
Software - Infrastructure · price $20.93 · 1Y $28.80 · 5Y $42.17 · 10Y $62.55
FCF $252m C · Rev +25.6% A- · D/E 1.34 C · P/E 14.8x A- · PEG 0.04 A
Why now. Pagaya’s Decline Monetization platform is already capturing rejected loan applications from banks, generating a 25.6% YoY revenue lift that is now reflected in a 14.8× P/E and a 9.1% profit margin—proof that the AI‑driven underwriting edge is scaling. The Bull Rankings model’s 86.2/100 quality‑growth score, with Value at 99 and Growth at 92, shows the market is pricing in aggressive upside while still valuing the company at a modest multiple. The key thesis rests on the platform’s ability to convert every declined application into a revenue stream, a moat that will compound as banks seek to outsource risk management.
Moat. The proprietary AI that powers Decline Monetization creates a network effect: each new partner adds data that sharpens the model, lowering acquisition costs for subsequent clients. Because the system automatically routes rejected loans, banks cannot easily replicate the same real‑time decision layer without the same data volume, giving Pagaya a defensible edge that drives its 19.5% ROE.
Risk. Pagaya’s beta of 5.37 signals extreme volatility; a 1.34 debt‑to‑equity ratio and a 14.8× P/E indicate the market is already pricing in high growth expectations. If the 25.6% revenue growth stalls or if banks shift to in‑house AI, the high valuation could collapse—evidenced by the reverse‑DCF implying a -15% free‑cash‑flow growth that is far below current revenue momentum.
Horizon. 1-3 yr $28.80 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $42.17 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $62.55 if current growth sustains into durable earnings power.
6. INTU — Intuit Inc. · score 86.1
Software - Application · price $335.60 · 1Y $451.32 · 5Y $660.78 · 10Y $980.22
FCF $7.8b B+ · Rev +15.1% B+ · D/E 0.33 B · P/E 20.5x B+ · PEG 0.90 B+
Why now. Intuit’s QuickBooks Online platform is the engine of its growth, delivering 15.1% FY revenue growth while expanding its small‑business customer base, which fuels a 21.9% profit margin and generates $7.8B free cash flow – a cash engine that can be redeployed into product innovation and share buybacks. Coupled with a PEG of 0.9, the business compounds earnings faster than peers, making the 15%+ revenue expansion the single most compelling driver of upside.
Moat. The QuickBooks ecosystem locks SMBs in through integrated payroll, payments, and financing services, creating high switching costs and a data moat that underpins the 22.2% ROE. Mailchimp adds cross‑sell power, deepening customer relationships and allowing Intuit to monetize the same user base across finance and marketing, a synergy competitors can’t replicate quickly.
Risk. The premium valuation – a forward P/E of 20.5 – assumes growth will stay near the current 15% pace, yet the Bull Rankings model’s reverse‑DCF shows the price implies a -3% annual free‑cash‑flow growth over the next decade, a stark mismatch that could unravel if SMB spending slows or larger players erode QuickBooks’ market share. A sustained slowdown in revenue growth would trigger a sell‑off, confirming the bear case.
Horizon. 1-3 yr $451.32 (analyst consensus (n=33)) — fundamentals + valuation re-rating. 5 yr $660.78 at ~15% 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 $225.01 · 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 0.62 A-
Why now. NVIDIA’s AI‑centric Compute & Networking platform is exploding, driven by data‑center GPUs that power the world’s generative‑AI workloads. The segment’s 70.7% YoY revenue growth, 63% profit margin and $119.1 B free‑cash‑flow prove the cash engine can keep compounding, and our Bull Rankings model rates its Growth pillar at a near‑perfect 99, making the stock a high‑quality compounder. The thesis hinges on sustained AI demand keeping the free‑cash‑flow growth near the model‑implied 51%/yr.
Moat. NVIDIA’s moat lives in its data‑center GPU IP stack and the accompanying AI software ecosystem, which lock in hyperscale customers who cannot switch without massive re‑engineering. The 81.7% ROE reflects pricing power from being the de‑facto standard in AI acceleration, a position competitors can’t replicate quickly due to the deep integration of CUDA and the massive R&D spend required.
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 pricing pull‑back would hit the valuation hard; a dip back toward the 52‑week low of $164.07 would validate the bear case that the market has over‑priced growth. A sustained margin compression or a rise in debt‑to‑equity above the current 0.07 would be the trigger that shatters the bullish narrative.
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 85.6
Software - Infrastructure · price $92.37 · 1Y $104.80 · 5Y $153.44 · 10Y $227.61
FCF $1.7b C+ · Rev +7.4% B · D/E n/a · P/E 13.7x A · PEG 0.68 A-
Why now. GoDaddy’s Applications & Commerce suite – especially the high‑margin Websites + Marketing and Managed WordPress tools – is driving a resilient cash‑generating engine, evidenced by $1.7B of free cash flow, a solid 17.8% profit margin, and a low PEG of 0.68. Coupled with a 7.4% YoY revenue growth and a Bull Rankings model Quality score of 95 (its strongest pillar), the business compounds earnings faster than peers, making the current price a launchpad for upside. The thesis hinges on the continued expansion of the A&C segment’s subscription base.
Moat. The Core Platform underpins GoDaddy’s A&C offerings, delivering a unified domain‑registration, hosting, and ecommerce stack that locks small‑business owners into a single‑vendor workflow. Switching costs are high because customers must migrate sites, SEO tools, and payment integrations, a process competitors can’t replicate quickly without a comparable ecosystem.
Risk. Growth is the model’s weakest pillar (75), and the 7.4% revenue pace is modest for a “growth” label; the reverse‑DCF implies a -16% annual FCF growth rate, a stark mismatch that suggests the market is over‑optimistic. A slowdown in A&C subscription uptake would push the P/E of 13.7 into valuation territory and could trigger a sell‑off, especially if the stock stalls near its 52‑week high of $150.47. Confirmation of the bear case would be a miss on quarterly revenue growth and a widening of the free‑cash‑flow gap.
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.
9. DOCS — Doximity, Inc. · score 84.3
Health Information Services · price $24.52 · 1Y $29.11 · 5Y $42.62 · 10Y $63.23
FCF $306m C · Rev +11.2% B · D/E 0.01 A- · P/E 29.2x B · PEG 0.59 A-
Why now. Doximity stands out as a high-quality compounder within the Health Information Services sector, leveraging its indispensable digital platform for medical professionals. Our model's Quality score of 88/100, the strongest pillar of its 84.3/100 quality-growth score, reflects robust fundamentals, including a strong profit margin of 25.5% and impressive free cash flow of $306m on a $4.4b market cap. This financial strength, coupled with its personalized newsfeed and workflow tools like Ask and Scribe, positions DOCS to continue generating significant cash even with revenue growth moderating to 11.2% FY YoY.
Moat. Doximity's durable edge is rooted in its deep integration into the daily professional lives of medical professionals through its Doximity platform. The personalized newsfeed, which delivers essential clinical and professional content, alongside HIPAA-compliant AI tools such as Ask and Scribe, fosters high engagement and creates significant switching costs. This proprietary ecosystem, which also serves as a critical conduit for sponsored content from pharmaceutical manufacturers and health systems, underpins its solid 18.2% Return on Equity by creating a powerful network effect.
Risk. The primary concern for Doximity lies in its valuation, which our model identifies as its weakest pillar, scoring Value at 80/100. With a P/E (TTM) of 29.2, the stock trades at a premium, especially considering its revenue growth has decelerated to 11.2% FY YoY. Our reverse DCF analysis further indicates that today's price implies approximately 6% annual free-cash-flow growth sustained for 10 years, which could prove challenging to meet if competition intensifies in the health information services sector or if the adoption rate of new workflow tools does not accelerate as expected.
Horizon. 1-3 yr $29.11 (analyst consensus (n=18)) — fundamentals + valuation re-rating. 5 yr $42.62 at ~12% 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 83.8
Advertising Agencies · price $311.98 · 1Y $546.58 · 5Y $800.25 · 10Y $1,187
FCF $4.5b B · Rev +60.6% A · D/E 1.11 C+ · P/E 24.0x C+ · PEG 0.87 B+
Why now. The bull case hinges on MAX, AppLovin’s AI‑driven in‑app bidding engine, which is fueling a staggering 60.6% YoY revenue growth and locking in premium ad inventory. This growth is underpinned by an industry‑leading 64.6% profit margin and a massive $4.5 B free‑cash‑flow generation, giving the company the cash to reinvest and expand its platform. Our Bull Rankings model rates APP at an 83.8/100 quality‑growth score with Growth as the strongest pillar, confirming that the compounding engine is real and durable. The thesis rests on the persistence of MAX’s network‑effect‑driven revenue expansion.
Moat. MAX creates a real‑time competitive auction that ties publishers to AppLovin’s ecosystem, making it costly to switch because advertisers rely on the same data and optimization algorithms. Coupled with Adjust’s measurement platform, AppLovin locks in both supply‑side and demand‑side customers, delivering a double‑sided moat that competitors can’t replicate quickly.
Risk. The bear case centers on the lofty valuation implied by a reverse‑DCF 14% annual FCF growth assumption, which far outpaces the already impressive 60.6% revenue growth and could be unsustainable if the market cools. A high beta of 2.53 and a debt‑to‑equity of 1.11 amplify downside risk, and a contraction of profit margin below the current 64.6% would immediately invalidate the growth premium, likely sending the stock back toward its 52‑week low.
Horizon. 1-3 yr $546.58 (analyst consensus (n=31)) — fundamentals + valuation re-rating. 5 yr $800.25 at ~21% CAGR — compounding case rests on the competitive position widening. 10 yr $1,187 if current growth sustains into durable earnings power.
11. CARG — CarGurus, Inc. · score 83.5
Auto & Truck Dealerships · price $35.77 · 1Y $41.50 · 5Y $60.76 · 10Y $90.13
FCF $315m C · Rev +13.9% B+ · D/E 0.70 B+ · P/E 18.4x B · PEG 1.10 B+
Why now. CarGurus presents a compelling growth opportunity, with our model assigning it a strong Quality-growth score of 83.5/100, anchored by an exceptional Quality pillar at 88. The company's online automotive platform, which connects a large audience of car shoppers with an extensive network of dealers, generates substantial free cash flow of $315m TTM against a modest $3.2b market cap. Our reverse DCF analysis indicates the current price implies a highly pessimistic ~-3%/yr free-cash-flow growth sustained for 10 years, a stark contrast to its actual 13.9% FY YoY revenue growth, suggesting significant undervaluation for a business actively buying back stock.
Moat. CarGurus's durable edge stems from a powerful network effect within its online automotive marketplace: a growing base of car shoppers attracts more dealers, which in turn expands inventory and draws even more shoppers. The integrated suite of products, including Digital Deal and Dealership Mode, creates high switching costs and deepens dealer reliance on the platform's reach. This robust platform leverage and category leadership in connecting buyers and sellers is reflected in its exceptional 66.6% Return on Equity, demonstrating strong pricing power and efficient capital allocation.
Risk. The primary bear case for CarGurus centers on the inherent cyclicality of the Auto & Truck Dealerships sector, which directly impacts dealer subscription fees and advertising revenue. Despite a reasonable P/E of 18.7, our model's weakest pillar is Value (78), indicating that the market may not see significant valuation upside even with current profitability. A sustained deceleration in revenue growth below the current 13.9% FY YoY, coupled with an increase in its 0.7 debt-to-equity ratio, would signal a weakening market position and confirm the bear thesis.
Horizon. 1-3 yr $41.50 (analyst consensus (n=12)) — fundamentals + valuation re-rating. 5 yr $60.76 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $90.13 if current growth sustains into durable earnings power.
12. EXLS — ExlService Holdings, Inc. · score 83.2
Information Technology Services · price $34.56 · 1Y $44.38 · 5Y $64.97 · 10Y $96.38
FCF $297m C · Rev +13.4% B+ · D/E 0.57 C+ · P/E 21.9x B+ · PEG 1.03 B+
Why now. Information Technology Services · market cap $5.2b. Down 23% from 52-week high of $45.08 — deep drawdown territory. Revenue growing +13%, comfortably above the S&P median. 8 sell-side analysts publish a mean 1-yr target of $44.38 (implying +28% upside).
Moat. ROE 32% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 118% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon. 1-3 yr $44.38 (analyst consensus (n=8)) — fundamentals + valuation re-rating. 5 yr $64.97 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $96.38 if current growth sustains into durable earnings power.
13. EPAM — EPAM Systems, Inc. · score 82.5
Information Technology Services · price $98.73 · 1Y $122.82 · 5Y $155.06 · 10Y $198.86
FCF $483m C · Rev +10.8% B · D/E 0.04 A- · P/E 13.4x A · PEG 0.54 A-
Why now. Information Technology Services · market cap $5.1b. Down 56% from 52-week high of $222.53 — deep drawdown territory. Revenue growing +11%, comfortably above the S&P median. PEG 0.54 — 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 +24% upside).
Moat. ROE 11% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 120% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Down 56% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon. 1-3 yr $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.
14. LRN — Stride, Inc. · score 81.9
Education & Training Services · price $83.43 · 1Y $90.10 · 5Y $113.75 · 10Y $145.89
FCF $433m C · Rev +4.7% C+ · D/E 0.33 A- · P/E 11.7x A · PEG 0.49 A
Why now. Education & Training Services · market cap $3.5b. Down 51% from 52-week high of $171.17 — deep drawdown territory. PEG 0.49 — 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 $90.10 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $113.75 at ~6% CAGR — dividend + buyback compounding. 10 yr $145.89 if the moat survives secular pressure.
15. ADMA — ADMA Biologics, Inc. · score 81.7
Biotechnology · price $9.34 · 1Y $17.00 · 5Y $21.46 · 10Y $27.52
FCF $116m C · Rev +8.0% B · D/E 1.11 C · P/E 13.3x A- · PEG 0.57 A-
Why now. Biotechnology · market cap $2.1b. Down 54% from 52-week high of $20.46 — deep drawdown territory. PEG 0.57 — 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 +82% 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.
16. RMD — ResMed Inc. · score 81.4
Medical Instruments & Supplies · price $220.37 · 1Y $247.20 · 5Y $361.93 · 10Y $536.89
FCF $1.6b C+ · Rev +9.9% B · D/E 0.13 B+ · P/E 21.1x B+ · PEG 1.30 B
Why now. Medical Instruments & Supplies · market cap $31.8b. Down 25% from 52-week high of $293.81 — deep drawdown territory. 15 sell-side analysts rate this a Buy with a mean 1-yr target of $247.20 (implying +12% upside).
Moat. Net margin 27% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 23% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 108% 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.
17. PRDO — Perdoceo Education Corporation · score 81.2
Education & Training Services · price $32.04 · 1Y $34.60 · 5Y $43.69 · 10Y $56.03
FCF $221m C · Rev +11.7% B · D/E 0.11 A- · P/E 11.7x A · PEG 0.68 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 0.68 — 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 $34.60 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $43.69 at ~6% CAGR — dividend + buyback compounding. 10 yr $56.03 if the moat survives secular pressure.
18. FISV — Fiserv, Inc. · score 80.3
Sector n/a · price $52.21 · 1Y $62.18 · 5Y $78.50 · 10Y $100.67
FCF $3.9b B · Rev +9.3% B · D/E n/a · P/E 10.0x A- · PEG 0.96 B+
Why now. Sector n/a · market cap $27.8b. Down 63% from 52-week high of $140.42 — deep drawdown territory. PEG 0.96 — paying under fair value for the growth rate. 28 sell-side analysts rate this a Hold with a mean 1-yr target of $62.18 (implying +19% 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 63% 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. DECK — Deckers Outdoor Corporation · score 79.5
Footwear & Accessories · price $90.11 · 1Y $122.81 · 5Y $155.04 · 10Y $198.84
FCF $1.1b C+ · Rev +7.9% B · D/E 0.21 A- · P/E 12.8x A- · PEG 1.14 B+
Why now. Footwear & Accessories · market cap $12.3b. Down 28% 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 +36% upside).
Moat. Net margin 18% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 44% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 110% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon. 1-3 yr $122.81 (analyst consensus (n=21)) — multiple re-rating thesis requires a catalyst. 5 yr $155.04 at ~11% CAGR — dividend + buyback compounding. 10 yr $198.84 if the moat survives secular pressure.
20. ACN — Accenture plc · score 78.9
Information Technology Services · price $169.98 · 1Y $179.11 · 5Y $226.12 · 10Y $289.99
FCF $12.6b A- · Rev +6.7% C+ · D/E 0.25 B · P/E 13.6x A · PEG 1.29 B
Why now. Information Technology Services · market cap $104.0b. Down 42% 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 $179.11 (implying +5% 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. $104.0b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Down 42% 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 $179.11 (analyst consensus (n=25)) — multiple re-rating thesis requires a catalyst. 5 yr $226.12 at ~6% CAGR — dividend + buyback compounding. 10 yr $289.99 if the moat survives secular pressure.
21. CPAY — Corpay, Inc. · score 78.9
Software - Infrastructure · price $407.62 · 1Y $450.64 · 5Y $568.93 · 10Y $729.63
FCF $1.6b C+ · Rev +20.4% A- · D/E 2.75 D · P/E 24.8x B+ · PEG 0.95 B+
Why now. Software - Infrastructure · market cap $26.8b. 4% off the 52-week high of $425.95. Revenue growing +20%, comfortably above the S&P median. PEG 0.95 — paying under fair value for the growth rate. 14 sell-side analysts rate this a Buy with a mean 1-yr target of $450.64 (implying +11% upside).
Moat. Net margin 23% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 32% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 144% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. D/E 2.75 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Software — competitive moat is durable until it isn't; watch net revenue retention, gross margin trends, and any new market entrant with a fundamentally lower price point.
Horizon. 1-3 yr $450.64 (analyst consensus (n=14)) — multiple re-rating thesis requires a catalyst. 5 yr $568.93 at ~7% CAGR — dividend + buyback compounding. 10 yr $729.63 if the moat survives secular pressure.
22. TPR — Tapestry, Inc. · score 78.8
Luxury Goods · price $129.02 · 1Y $167.00 · 5Y $210.83 · 10Y $270.39
FCF $1.8b C+ · Rev +14.2% B+ · D/E 5.72 D · P/E 17.7x B+ · PEG 0.26 A
Why now. Luxury Goods · market cap $26.1b. Down 22% from 52-week high of $164.80 — deep drawdown territory. Revenue growing +14%, comfortably above the S&P median. PEG 0.26 — paying under fair value for the growth rate. 20 sell-side analysts rate this a Buy with a mean 1-yr target of $167.00 (implying +29% 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 5.72 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Beta 1.46 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.
Horizon. 1-3 yr $167.00 (analyst consensus (n=20)) — multiple re-rating thesis requires a catalyst. 5 yr $210.83 at ~10% CAGR — dividend + buyback compounding. 10 yr $270.39 if the moat survives secular pressure.
23. GMED — Globus Medical, Inc. · score 78.7
Medical Devices · price $85.12 · 1Y $103.23 · 5Y $151.14 · 10Y $224.21
FCF $756m C+ · Rev +19.7% B+ · D/E 0.02 A- · P/E 21.8x B+ · PEG 1.49 B
Why now. Medical Devices · market cap $11.4b. 16% off the 52-week high of $101.40. Revenue growing +20%, comfortably above the S&P median. 13 sell-side analysts rate this a Buy with a mean 1-yr target of $103.23 (implying +21% upside).
Moat. Net margin 17% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 11% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 141% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon. 1-3 yr $103.23 (analyst consensus (n=13)) — fundamentals + valuation re-rating. 5 yr $151.14 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $224.21 if current growth sustains into durable earnings power.
24. VEEV — Veeva Systems Inc. · score 78.1
Health Information Services · price $238.34 · 1Y $244.14 · 5Y $357.45 · 10Y $530.25
FCF $1.7b C+ · Rev +16.2% B+ · D/E 0.01 A- · P/E 42.3x C · PEG 1.10 B+
Why now. Health Information Services · market cap $38.7b. Down 23% 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 +2% upside).
Moat. Net margin 28% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 13% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 177% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Trailing P/E 42x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. P/S 11.7x 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.
25. META — Meta Platforms, Inc. · score 77.9
Internet Content & Information · price $568.97 · 1Y $754.14 · 5Y $952.09 · 10Y $1,221
FCF $41.0b A · Rev +27.7% A- · D/E 0.43 B+ · P/E 21.4x B · PEG 0.88 B+
Why now. Internet Content & Information · market cap $1.4T. Down 28% from 52-week high of $790.80 — deep drawdown territory. Revenue growing +28% — in hypergrowth territory. PEG 0.88 — paying under fair value for the growth rate. 57 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $754.14 (implying +33% 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. $1.4T 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 ~11% CAGR — dividend + buyback compounding. 10 yr $1,221 if the moat survives secular pressure.
26. WMG — Warner Music Group Corp. · score 77.5
Entertainment · price $26.37 · 1Y $36.88 · 5Y $46.56 · 10Y $59.72
FCF $836m C+ · Rev +12.9% B+ · D/E 4.53 D · P/E 21.1x B · PEG 0.46 A
Why now. Entertainment · market cap $13.8b. Down 26% from 52-week high of $35.42 — deep drawdown territory. Revenue growing +13%, comfortably above the S&P median. PEG 0.46 — paying under fair value for the growth rate. 17 sell-side analysts rate this a Buy with a mean 1-yr target of $36.88 (implying +40% upside).
Moat. ROE 79% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 124% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. D/E 4.53 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer.
Horizon. 1-3 yr $36.88 (analyst consensus (n=17)) — multiple re-rating thesis requires a catalyst. 5 yr $46.56 at ~12% CAGR — dividend + buyback compounding. 10 yr $59.72 if the moat survives secular pressure.
27. DXCM — DexCom, Inc. · score 77.4
Medical Devices · price $88.76 · 1Y $94.12 · 5Y $137.80 · 10Y $204.42
FCF $1.4b C+ · Rev +15.5% B+ · D/E 0.53 B · P/E 35.1x C+ · PEG 1.69 C+
Why now. Medical Devices · market cap $33.5b. 3% off the 52-week high of $91.96. 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 +6% 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. 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. MELI — MercadoLibre, Inc. · score 76.8
Internet Retail · price $1787.57 · 1Y $2,257 · 5Y $3,304 · 10Y $4,901
FCF $12.4b A- · Rev +41.2% A · D/E 1.69 C+ · P/E 48.7x D · PEG 1.31 B
Why now. Internet Retail · market cap $90.6b. Down 30% 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 $2,257 (implying +26% 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. $90.6b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk. Trailing P/E 49x 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 $2,257 (analyst consensus (n=24)) — fundamentals + valuation re-rating. 5 yr $3,304 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $4,901 if current growth sustains into durable earnings power.
29. YUMC — Yum China Holdings, Inc. · score 75.8
Restaurants · price $47.14 · 1Y $62.05 · 5Y $90.85 · 10Y $134.77
FCF $940m C+ · Rev +8.8% B · D/E 0.38 A- · P/E 17.3x B+ · PEG 1.19 B+
Why now. Restaurants · market cap $16.1b. 19% 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 +32% 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.
30. CCK — Crown Holdings, Inc. · score 75.5
Packaging & Containers · price $116.24 · 1Y $136.57 · 5Y $172.42 · 10Y $221.12
FCF $1.2b C+ · Rev +10.3% B · D/E 1.86 C+ · P/E 16.7x B+ · PEG 0.64 A-
Why now. Packaging & Containers · market cap $12.6b. 5% 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 +17% 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.
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.