This refresh
Data-driven refresh August 19, 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 (5,244 tickers); 1,719 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 91.2
Software - Infrastructure · price $13.64 · 1Y $18.40 · 5Y $26.94 · 10Y $39.96
FCF $413m C · Rev +46.6% A · D/E 0.12 B+ · P/E 20.1x A- · PEG 0.64 A-
Why now. DLocal’s cross‑border pay‑in platform for high‑growth e‑commerce and ride‑hailing merchants is the engine of unstoppable compounding, delivering 46.6% YoY revenue growth, 34.6%% ROE and $413m of free cash flow – all at a modest PE of 20.1. The sheer scale of its APM network and platform‑as‑a‑service model ensures the revenue engine keeps accelerating, making the stock a pure growth play.
Moat. The moat lives in DLocal’s unified pay‑in/pay‑out stack for platforms, which locks merchants into a single integration for dozens of local cards, bank transfers and alternative payment methods. This creates high switching costs and pricing power that fuels the 34.6% ROE, while the breadth of its APM coverage is hard for rivals to replicate quickly.
Risk. The bear case hinges on the model’s dilution warning and the reverse‑DCF implying a –9% annual FCF growth, meaning the market is already pricing in a sharp slowdown from the current 46.6% revenue surge. If growth stalls or the company issues equity to fund expansion, the PE of 20.1 could look stretched and the stock could tumble toward its 52‑week low.
Horizon. 1-3 yr $18.40 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $26.94 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $39.96 if current growth sustains into durable earnings power.
2. ADBE — Adobe Inc. · score 89.5
Software - Application · price $263.14 · 1Y $269.72 · 5Y $394.90 · 10Y $585.81
FCF $10.3b A- · Rev +11.5% B · D/E 0.61 C+ · P/E 15.1x A- · PEG 0.64 A-
Why now. Adobe Inc. presents a compelling growth opportunity, with its foundational Digital Media segment continuing to generate robust cash flows that the market significantly undervalues. Despite a PE TTM of 15.1 and a PEG Ratio of 0.64, our model's reverse DCF indicates the current price implies only ~1%/yr free-cash-flow growth sustained for 10 years, a stark disconnect from its 11.5% FY YoY revenue growth. The core of the thesis rests on the market eventually recognizing the durable compounding power of its integrated platforms, especially given our model's strong Quality pillar score of 92.
Moat. Adobe's moat stems from its deeply embedded Digital Media and Digital Experience platforms, which create high switching costs for professionals and businesses alike. The company's category leadership in content creation tools for photographers and video editors, coupled with its integrated platform for customer experience optimization, allows for significant pricing power, evidenced by its exceptional 62.8% ROE. This structural advantage ensures durable high returns, a key signal from our model, as competitors struggle to replicate the breadth and integration of its offerings.
Risk. The bear case for Adobe centers on its decelerating growth trajectory and heightened market sensitivity, reflected in our model's weakest pillar being Growth (score of 86). While its 11.5% FY YoY revenue growth is solid, it represents a slowdown that could be exacerbated by increasing competition in both the Digital Media and Digital Experience segments. Furthermore, its Beta of 1.4 indicates significant volatility, making it vulnerable in broader market corrections. A sustained decline in profit margin from its current 28.7% would confirm the bear thesis, signaling eroding competitive advantages or pricing power.
Horizon. 1-3 yr $269.72 (analyst consensus (n=34)) — fundamentals + valuation re-rating. 5 yr $394.90 at ~8% 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 88.3
Biotechnology · price $38.83 · 1Y $46.10 · 5Y $67.50 · 10Y $100.12
FCF $355m C · Rev +24.3% A- · D/E 0.16 B+ · P/E 12.6x A · PEG 0.45 A
Why now. Harmony's breakthrough narcolepsy drug WAKIX (pitolisant), a molecule with a novel mechanism of action for the treatment of excessive daytime sleepiness in adult patients with narcolepsy, and its 24.3% revenue growth paired with an 18.9% profit margin and a modest PE of 12.6 give the upside engine needed to hit the analyst consensus of $46.10. Our Bull Rankings model rates the stock 88.3/100 on Quality‑Growth, with Value as the strongest pillar, underscoring that the market is already rewarding the high‑margin franchise while still leaving room for compounding earnings as Phase‑3 PWS data roll out. The thesis rests on sustained commercial traction of WAKIX and pipeline de‑risking, which should keep free‑cash‑flow expanding well above the reverse‑DCF implied -18% decline.
Moat. WAKIX’s novel histamine‑3 antagonism gives Harmony a first‑to‑market advantage in excessive daytime sleepiness, creating prescribing inertia among neurologists and sleep specialists who face high switching costs for rare‑disease therapies. The drug’s U.S. commercial rollout leverages a specialized sales force focused on rare neurology, translating the 18.1% ROE into pricing power that competitors cannot quickly replicate without costly clinical programs.
Risk. The bear case hinges on the Phase‑3 PWS trial failing to meet its primary endpoint, which would strip Harmony of its next growth catalyst and leave WAKIX as a single‑product revenue engine. A PE of 12.6, while low, still reflects premium pricing expectations; any margin compression or slowdown from the current 24.3% revenue growth would force the stock toward the lower end of the analyst target range. A missed trial readout would trigger a sell‑off, confirming the downside risk.
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 87.9
Drug Manufacturers - Specialty & Generic · price $154.23 · 1Y $211.57 · 5Y $309.76 · 10Y $459.51
FCF $870m C+ · Rev +34.4% A · D/E 0.12 B+ · P/E 22.5x B+ · PEG 0.45 A
Why now. Our model gives NBIX a Quality‑Growth score of 87.9, with Growth as the strongest pillar, because its flagship neurology franchise INGREZZA is driving a 34.4% YoY revenue growth while the company delivers a healthy 20.9% profit margin and generates $870 m of free cash flow. The low PEG of 0.45 and ultra‑low beta (0.39) underscore a high‑growth, low‑volatility engine that can keep compounding earnings for years – the thesis rests on sustaining this specialty‑drug momentum.
Moat. NBIX’s moat comes from its entrenched position in rare‑disease neurology and endocrine markets – INGREZZA for tardive dyskinesia and Orilissa for endometriosis command pricing power thanks to limited alternatives and strong payer acceptance, translating into a ROE of 19.1% driven by premium pricing and high‑margin specialty sales.
Risk. The bear case points to a valuation premium: a forward P/E of 22.5 is high for a specialty biotech, and the reverse‑DCF implies an 8% annual free‑cash‑flow growth rate that far exceeds the 34% revenue surge, suggesting the market may be over‑optimistic about future pipeline success; a slowdown in new‑product approvals or competitive entry into the movement‑disorder space would collapse that premium.
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. NVDA — NVIDIA Corporation · score 86.2
Semiconductors · price $219.74 · 1Y $302.83 · 5Y $443.37 · 10Y $657.71
FCF $119.1b A · Rev +70.7% A · D/E 0.07 B+ · P/E 33.7x B · PEG 0.62 A-
Why now. NVIDIA’s Compute & Networking segment is cementing its role as the backbone of AI infrastructure, and that moat is expanding at a blistering 70.7% YoY revenue growth while delivering a 63% profit margin and an industry‑shattering 81.7% ROE. Those numbers prove the business compounds cash at a rate that outpaces most peers, and the only thing that matters is that AI‑driven data‑center demand stays on its current trajectory. The thesis rests on the relentless compounding of AI spend into NVIDIA’s accelerated‑computing platforms.
Moat. The Compute & Networking platform locks in hyperscale cloud providers and enterprise AI teams with proprietary GPU architectures and a software stack that is hard to replace, creating massive switching costs. NVIDIA’s ROE of 81.7% is driven by pricing power in a market where no alternative can match the performance‑per‑watt of its GPUs, ensuring sustained margin expansion and cash generation.
Risk. The stock trades at a lofty PE of 33.7 and a beta of 2.21, meaning any slowdown in AI spend or a broader market pullback would hit the price hard; the Bull Rankings model’s reverse‑DCF assumes a 50% annual FCF growth for a decade, far below the 70.7% revenue surge, so a deceleration to historic levels would instantly invalidate the valuation. A breach of the 52‑week low ($164.07) would confirm the bear case.
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.
6. PGY — Pagaya Technologies Ltd. · score 86.2
Software - Infrastructure · price $20.32 · 1Y $28.80 · 5Y $42.17 · 10Y $62.55
FCF $252m C · Rev +25.6% A- · D/E 1.34 C · P/E 14.4x A- · PEG 0.04 A
Why now. Pagaya’s Decline Monetization platform is unlocking hidden loan revenue, driving a 25.6% YoY revenue surge while delivering $252 m of free‑cash‑flow and a rock‑solid PE of 14.4×. Our Bull Rankings model awards a 86.2 quality‑growth score, with Value as the strongest pillar, confirming the stock is dramatically under‑priced relative to its cash‑generating engine. The thesis hinges on scaling this AI‑driven loan‑approval network across U.S. lenders, compounding earnings at the current growth rate.
Moat. The Decline Monetization and Dual Look products embed Pagaya’s AI into partner lenders’ underwriting pipelines, creating a high‑switching‑cost ecosystem where banks rely on Pagaya’s proprietary data to recover otherwise rejected loans. This network effect fuels a pricing advantage that underpins the 19.5% ROE, far above typical software peers.
Risk. A beta of 5.37 makes the stock wildly sensitive to market swings, and a debt‑to‑equity of 1.34 adds leverage risk; more importantly, the Bull Rankings reverse‑DCF implies a -15% annual free‑cash‑flow growth rate, a stark mismatch to the 25.6% revenue growth and suggests the current price embeds unrealistic optimism. A sustained slowdown in loan‑originations or a credit‑quality shock would validate this bearish view.
Horizon. 1-3 yr $28.80 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $42.17 at ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $62.55 if current growth sustains into durable earnings power.
7. INTU — Intuit Inc. · score 86
Software - Application · price $350.41 · 1Y $449.20 · 5Y $657.67 · 10Y $975.61
FCF $7.8b B+ · Rev +15.1% B+ · D/E 0.33 B · P/E 21.4x B+ · PEG 0.90 B+
Why now. Intuit is the undisputed king of small-business financial software, and its crown just got heavier: QuickBooks Online and Mailchimp dominate the U.S. SMB stack. With 21.9% profit margins and $7.8B in trailing free cash flow, the company converts its pricing power into cash at scale while growing revenue 15.1% YoY. The crux: every new small business born in the U.S. is a QuickBooks sale before it’s a QuickBooks upgrade, locking in compounding revenue as the SMB cohort expands.
Moat. Intuit’s moat is a data flywheel: QuickBooks’ transaction data feeds Credit Karma’s credit insights, which in turn drives Mailchimp’s customer‑acquisition ROI for the same SMBs. This closed‑loop network creates switching costs measured in years of historical data, not just contract length. The result is a 22.2% ROE sustained by pricing power in a category where alternatives (Xero, FreshBooks) lack the same breadth of integrated payroll, payments, and marketing automation.
Risk. The bear case is simple: Intuit’s P/E of 21.4x assumes the SMB tailwind never fades, but if the U.S. small‑business formation rate slows—say, due to a recession—QuickBooks’ growth could decelerate below 10%. A 5% revenue slowdown would crush the 21.9% margins, and the stock’s premium valuation would reprice sharply. The signal to sell: management guides FY revenue growth below 12% for two consecutive quarters.
Horizon. 1-3 yr $449.20 (analyst consensus (n=33)) — fundamentals + valuation re-rating. 5 yr $657.67 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $975.61 if current growth sustains into durable earnings power.
8. GDDY — GoDaddy Inc. · score 85.6
Software - Infrastructure · price $95.80 · 1Y $104.80 · 5Y $153.44 · 10Y $227.61
FCF $1.7b C+ · Rev +7.4% B · D/E n/a · P/E 14.2x A- · PEG 0.68 A-
Why now. The bull case hinges on GoDaddy’s Applications & Commerce (A&C) segment, where the Websites + Marketing suite fuels recurring revenue from millions of SMBs. The business is scaling at a solid 7.4% YoY revenue growth, converting that into a healthy 17.8% profit margin and generating $1.7 B of free cash flow—all while trading at a modest PE of 14.2x. With our model’s Quality pillar at 95, the company’s cash‑rich, high‑margin engine validates the premium, and the thesis rests on the continued compounding of A&C cash flow.
Moat. GoDaddy’s moat derives from its integrated platform that bundles website building, managed WordPress, and marketing tools into a single subscription, creating high switching costs for SMB owners who rely on the ecosystem for domain, hosting, and e‑commerce. The Core Platform underpins these services, delivering scale efficiencies that competitors can’t replicate quickly, locking in a stable, recurring revenue base.
Risk. The bear case centers on the modest growth rate; a 7.4% revenue increase is well below the sector’s high‑growth peers, and the reverse‑DCF shows the stock pricing in a -15% annual free‑cash‑flow growth assumption, implying the market is already betting on aggressive upside that may not materialize. A slowdown in A&C adoption or pricing pressure would compress the 17.8% margin, and a breach of the 52‑week low at $71.59 would trigger stop‑loss selling, confirming the downside.
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 $24.94 · 1Y $29.39 · 5Y $43.03 · 10Y $63.83
FCF $306m C · Rev +11.2% B · D/E 0.01 A- · P/E 29.7x B · PEG 0.59 A-
Why now. DOCS’s AI‑powered workflow tool Ask is turning the platform into an indispensable clinical assistant, unlocking deeper monetization of its 24‑million physician network. The business is already delivering a 25.5% profit margin, a 11.2% revenue growth rate YoY, and a robust $306 M of free cash flow, all while trading at a modest PEG of 0.59. The compounding engine is the expanding AI‑driven engagement that will keep margins high and cash generation accelerating – that’s the engine that powers the bull case.
Moat. DOCS locks physicians into a single, HIPAA‑compliant ecosystem where Ask, the AI assistant, lives alongside the newsfeed, peer updates, and sponsored content, creating a high‑switching‑cost environment. Every clinical decision that taps Ask reinforces network effects, because the more doctors use the platform, the richer the data and the more valuable the AI becomes, a moat that competitors can’t replicate quickly.
Risk. The stock is priced at a forward P/E of 29.7× despite only 11.2% revenue growth, implying that any slowdown in user‑growth or AI adoption would crush valuation multiples. A beta of 1.21 adds market‑risk volatility, and the price still sits far below its 52‑week high, suggesting the market may already be penalizing growth risk. A miss on AI‑assistant adoption or a slowdown in margin expansion would trigger a sharp re‑rating.
Horizon. 1-3 yr $29.39 (analyst consensus (n=18)) — fundamentals + valuation re-rating. 5 yr $43.03 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $63.83 if current growth sustains into durable earnings power.
10. APP — AppLovin Corporation · score 83.9
Advertising Agencies · price $307.26 · 1Y $546.58 · 5Y $800.25 · 10Y $1,187
FCF $4.5b B · Rev +60.6% A · D/E 1.11 C+ · P/E 23.6x B · PEG 0.87 B+
Why now. The bull case hinges on MAX, AppLovin’s AI‑driven in‑app bidding platform, which is locking in a growing share of mobile inventory as developers demand real‑time monetization. That engine is fueling 60.6% YoY revenue growth, while the business converts that top‑line into an industry‑leading 64.6% profit margin and generates $4.5B of free cash flow – a cash‑rich moat that compounds faster than peers. With our model’s Growth pillar at the top and a 14% implied FCF growth versus a 60% revenue surge, the current price already discounts the upside, making the next upside move almost a certainty.
Moat. MAX creates a sticky ecosystem: publishers hand over inventory to a real‑time auction that continuously learns, making switching costly and preserving high yields. Coupled with Adjust’s analytics suite, AppLovin offers a one‑stop AI stack that lets developers optimize spend and measurement in‑house, locking in pricing power that underpins the 64.6% margin and shields the business from low‑cost rivals.
Risk. The bear case centers on the stock’s extreme volatility (beta 2.53) and a leverage profile that sits at a 1.11 debt‑to‑equity ratio, which could bite if ad spend contracts. A forward P/E of 23.9 already reflects premium expectations, and any slowdown from the current 60.6% revenue pace would crush the valuation multiple. A sustained dip in ad spend or a pricing war that erodes margins would trigger a sharp correction, confirming the downside thesis.
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 83.2
Auto & Truck Dealerships · price $36.22 · 1Y $41.50 · 5Y $60.76 · 10Y $90.13
FCF $315m C · Rev +13.9% B+ · D/E 0.70 B+ · P/E 18.7x B · PEG 1.10 B+
Why now. CarGurus, Inc. is a high-quality compounder with significant upside, as the market is severely underpricing its sustained growth and robust free cash flow generation. The company's online automotive marketplace, connecting a "large audience of car shoppers with extensive network of dealers," is expanding, driven by offerings like "Digital Deal" and "Dealership Mode." Free cash flow of $315m against a $3.3b market cap implies a strong FCF yield, and while revenue grew 13.9% (FY YoY), our model's reverse DCF implies a pessimistic ~-3%/yr FCF growth for 10 years, suggesting substantial upside if current growth persists. The crux is that the market is failing to appreciate the compounding power of its platform and FCF generation.
Moat. CARG's "online automotive marketplace" benefits from a powerful network effect, connecting a "large audience of car shoppers with extensive network of dealers." This dual-sided network becomes more valuable as more participants join, creating high switching costs for both dealers and consumers. The exceptional 66.6% Return on Equity stems from this platform's asset-light model and pricing power derived from its category leadership in connecting buyers and sellers, allowing it to generate substantial profits (profit margin 18.2%) without heavy capital investment.
Risk. Despite strong fundamentals and our model's high Quality score of 88, the "Auto & Truck Dealerships" sector is cyclical, and CARG's reliance on "dealer subscription fees" and "advertising from auto manufacturers" could face headwinds in an economic downturn, impacting dealer budgets. Our model's weakest pillar is Value at 77, and the 1.17 beta suggests higher sensitivity to market fluctuations. A sustained deceleration in revenue growth below the current 13.9% or a significant contraction in profit margins would confirm that cyclical pressures are outweighing the platform's network effects.
Horizon. 1-3 yr $41.50 (analyst consensus (n=12)) — fundamentals + valuation re-rating. 5 yr $60.76 at ~10% 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 82.9
Information Technology Services · price $35.47 · 1Y $44.38 · 5Y $64.97 · 10Y $96.38
FCF $297m C · Rev +13.4% B+ · D/E 0.57 C+ · P/E 22.4x B+ · PEG 1.03 B+
Why now. EXLS is poised to ride its AI‑driven claims‑management and underwriting platform across the Insurance segment, where it already captures high‑margin contracts; the business is delivering 13.4% revenue growth YoY, a 32.3% ROE and $297 m of free cash flow on a $5.4 b market cap, all while trading at a modest 22.4× P/E. Our Bull Rankings model rates its Growth pillar highest (88) and the reverse‑DCF shows the market only assumes a 4% FCF growth rate—far below the 13% top‑line expansion—meaning the stock is priced conservatively. The thesis rests on the compounding power of AI‑enabled insurance operations that should keep the growth engine humming for years.
Moat. EXLS’s moat lives in its deep integration with insurers’ core workflows—claims processing, premium administration and actuarial analytics—creating high switching costs because clients rely on the same data pipelines and AI models for regulatory compliance and loss mitigation. The 32.3% ROE reflects pricing power derived from being a preferred provider in a fragmented insurance tech market, where new entrants must rebuild costly data sets and compliance frameworks.
Risk. The bear case centers on the concentration in the Insurance segment, which accounts for the bulk of revenue; a slowdown in insurance underwriting cycles or a major insurer shifting to an in‑house AI solution would compress margins. At a 22.4× P/E the stock is already priced for growth, and any deceleration below the 13.4% revenue pace would force the valuation down. A sustained rise in debt‑to‑equity above 0.6 or a miss on the 4% implied FCF growth would confirm the downside.
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 82.4
Information Technology Services · price $100.25 · 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 0.54 A-
Why now. EPAM’s digital platform engineering franchise is exploding, driven by its cloud‑enabled migration and AI‑analytics services that win multi‑year contracts with Fortune‑500 enterprises. The business is growing revenue at 10.8% YoY, converting that into $483 m of free cash flow while trading at a modest PE of 13.6× and a rock‑bottom PEG of 0.54—a clear sign the market is undervaluing a high‑margin growth engine. The thesis hinges on the compounding power of its platform‑centric engagements, which should keep cash generation and earnings expanding for years to come.
Moat. EPAM’s moat lives in its end‑to‑end engineering platform that bundles requirements analysis, cross‑platform migration, cloud road‑mapping and AI integration into a single, highly customized solution. Large enterprises face massive switching costs because each migration embeds proprietary code, data pipelines and security frameworks that would be prohibitively expensive to rebuild elsewhere. This sticky relationship, combined with a debt‑to‑equity of just 0.04, lets EPAM reinvest cash without financing constraints, reinforcing its competitive edge.
Risk. The biggest headwind is the market’s expectation of continued high growth baked into the current price—our reverse‑DCF shows the stock implies ~1% annual free‑cash‑flow growth for a decade, far below the actual 10.8% revenue growth rate, meaning any slowdown would expose a valuation gap. A beta of 1.37 amplifies downside in a volatile tech environment, and a modest profit margin of 7.2% leaves little cushion if pricing pressure intensifies. A sustained miss on quarterly revenue or margin would trigger a sell‑off, confirming the bear case.
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. LRN — Stride, Inc. · score 82
Education & Training Services · price $83.76 · 1Y $90.46 · 5Y $114.20 · 10Y $146.46
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 $90.46 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $114.20 at ~6% CAGR — dividend + buyback compounding. 10 yr $146.46 if the moat survives secular pressure.
15. ADMA — ADMA Biologics, Inc. · score 81.6
Biotechnology · price $9.54 · 1Y $17.00 · 5Y $21.46 · 10Y $27.52
FCF $116m C · Rev +8.0% B · D/E 1.11 C · P/E 13.6x A- · PEG 0.58 A-
Why now. Biotechnology · market cap $2.1b. Down 53% 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 +78% 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 53% 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 81.3
Medical Instruments & Supplies · price $219.98 · 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 $31.7b. 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. FISV — Fiserv, Inc. · score 80.5
Sector n/a · price $51.72 · 1Y $62.18 · 5Y $78.50 · 10Y $100.67
FCF $3.9b B · Rev +9.3% B · D/E n/a · P/E 9.9x A- · PEG 0.94 B+
Why now. Sector n/a · market cap $27.5b. Down 63% from 52-week high of $140.42 — deep drawdown territory. PEG 0.94 — 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 +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 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 ~9% CAGR — dividend + buyback compounding. 10 yr $100.67 if the moat survives secular pressure.
18. INOD — Innodata Inc. · score 80.2
Information Technology Services · price $61.62 · 1Y $122.75 · 5Y $179.72 · 10Y $266.60
FCF $184m C · Rev +39.0% A · D/E 0.02 A- · P/E 47.8x C+ · PEG 0.87 B+
Why now. Information Technology Services · market cap $2.1b. Down 51% from 52-week high of $125.14 — deep drawdown territory. Revenue growing +39% — in hypergrowth territory. PEG 0.87 — paying under fair value for the growth rate. 4 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $122.75 (implying +99% upside).
Moat. Net margin 15% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 29% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk. Down 51% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 2.92 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 48x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $122.75 (analyst consensus (n=4)) — fundamentals + valuation re-rating. 5 yr $179.72 at ~24% CAGR — compounding case rests on the competitive position widening. 10 yr $266.60 if current growth sustains into durable earnings power.
19. DECK — Deckers Outdoor Corporation · score 79.5
Footwear & Accessories · price $89.51 · 1Y $122.81 · 5Y $155.04 · 10Y $198.84
FCF $1.1b C+ · Rev +7.9% B · D/E 0.21 A- · P/E 12.7x A- · PEG 1.14 B+
Why now. Footwear & Accessories · market cap $12.2b. Down 29% 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 +37% 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 ~12% CAGR — dividend + buyback compounding. 10 yr $198.84 if the moat survives secular pressure.
20. CPAY — Corpay, Inc. · score 78.8
Software - Infrastructure · price $406.82 · 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 $26.7b. 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.
21. GMED — Globus Medical, Inc. · score 78.7
Medical Devices · price $86.44 · 1Y $103.23 · 5Y $151.14 · 10Y $224.21
FCF $756m C+ · Rev +19.7% B+ · D/E 0.02 A- · P/E 22.1x B+ · PEG 1.49 B
Why now. Medical Devices · market cap $11.6b. 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 +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 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. META — Meta Platforms, Inc. · score 78.1
Internet Content & Information · price $543.67 · 1Y $754.14 · 5Y $952.09 · 10Y $1,221
FCF $41.0b A · Rev +27.7% A- · D/E 0.43 B+ · P/E 20.5x B · PEG 0.88 B+
Why now. Internet Content & Information · market cap $1.4T. Down 31% 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 +39% 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. Down 31% 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 $754.14 (analyst consensus (n=57)) — multiple re-rating thesis requires a catalyst. 5 yr $952.09 at ~12% CAGR — dividend + buyback compounding. 10 yr $1,221 if the moat survives secular pressure.
23. VEEV — Veeva Systems Inc. · score 78
Health Information Services · price $242.75 · 1Y $249.86 · 5Y $365.82 · 10Y $542.66
FCF $1.7b C+ · Rev +16.2% B+ · D/E 0.01 A- · P/E 43.0x C · PEG 1.10 B+
Why now. Health Information Services · market cap $39.4b. Down 22% from 52-week high of $310.50 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. 28 sell-side analysts rate this a Buy with a mean 1-yr target of $249.86 (implying +3% upside).
Moat. Net margin 28% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 13% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 177% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Trailing P/E 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 $249.86 (analyst consensus (n=28)) — fundamentals + valuation re-rating. 5 yr $365.82 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $542.66 if current growth sustains into durable earnings power.
24. DXCM — DexCom, Inc. · score 77.7
Medical Devices · price $89.60 · 1Y $94.12 · 5Y $137.80 · 10Y $204.42
FCF $1.4b C+ · Rev +15.5% B+ · D/E 0.53 B · P/E 35.4x C+ · PEG 1.69 C+
Why now. Medical Devices · market cap $33.8b. Trading near 52-week high of $91.96 — 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 3% 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.
25. WMG — Warner Music Group Corp. · score 77.4
Entertainment · price $26.30 · 1Y $36.88 · 5Y $46.56 · 10Y $59.72
FCF $836m C+ · Rev +12.9% B+ · D/E 4.53 D · P/E 21.0x 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.
26. TPR — Tapestry, Inc. · score 77.3
Luxury Goods · price $132.26 · 1Y $167.40 · 5Y $211.34 · 10Y $271.04
FCF $1.8b C+ · Rev +14.2% B+ · D/E 5.72 D · P/E 18.2x B · PEG 0.26 A
Why now. Luxury Goods · market cap $26.7b. 20% off the 52-week high of $164.80. 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 $167.40 (implying +27% 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 $167.40 (analyst consensus (n=20)) — multiple re-rating thesis requires a catalyst. 5 yr $211.34 at ~10% CAGR — dividend + buyback compounding. 10 yr $271.04 if the moat survives secular pressure.
27. MELI — MercadoLibre, Inc. · score 76.9
Internet Retail · price $1779.14 · 1Y $2,257 · 5Y $3,304 · 10Y $4,901
FCF $12.4b A- · Rev +41.2% A · D/E 1.69 C+ · P/E 48.3x D · PEG 1.31 B
Why now. Internet Retail · market cap $90.2b. 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 +27% 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. $90.2b 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 30% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trailing P/E 48x 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.
28. YUMC — Yum China Holdings, Inc. · score 76.5
Restaurants · price $46.86 · 1Y $62.05 · 5Y $90.85 · 10Y $134.77
FCF $940m C+ · Rev +8.8% B · D/E 0.38 A- · P/E 17.2x B+ · PEG 1.19 B+
Why now. Restaurants · market cap $16.0b. 20% 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.
29. CCK — Crown Holdings, Inc. · score 75.3
Packaging & Containers · price $116.86 · 1Y $136.57 · 5Y $172.42 · 10Y $221.12
FCF $1.2b C+ · Rev +10.3% B · D/E 1.86 C+ · P/E 16.8x B+ · PEG 0.64 A-
Why now. Packaging & Containers · market cap $12.7b. 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.
30. EME — EMCOR Group, Inc. · score 75.1
Engineering & Construction · price $824.53 · 1Y $1,033 · 5Y $1,304 · 10Y $1,673
FCF $1.2b C+ · Rev +18.9% B+ · D/E 0.13 A- · P/E 25.7x B+ · PEG 0.42 A
Why now. Engineering & Construction · market cap $36.4b. 13% off the 52-week high of $951.96. Revenue growing +19%, comfortably above the S&P median. PEG 0.42 — paying under fair value for the growth rate. 7 sell-side analysts rate this a Buy with a mean 1-yr target of $1,033 (implying +25% upside).
Moat. ROE 35% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which.
Risk. Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon. 1-3 yr $1,033 (analyst consensus (n=7)) — multiple re-rating thesis requires a catalyst. 5 yr $1,304 at ~10% CAGR — dividend + buyback compounding. 10 yr $1,673 if the moat survives secular pressure.
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.