This refresh
Data-driven refresh August 26, 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 (5,235 tickers); 1,730 scored on the quality-growth model (financials route to a separate card). Fundamentals from Yahoo Finance quoteSummary reconciled with as-reported SEC EDGAR filings; narrative authored by Groq (with Gemini and data-driven fallbacks).
Top Picks — quality compounders at a fair price
1. ADBE — Adobe Inc. · score 89.1
Software - Application · price $273.47 · 1Y $270.61 · 5Y $396.19 · 10Y $587.73
FCF $10.3b A- · Rev +11.5% B · D/E 0.61 C+ · P/E 15.6x A- · PEG 0.67 A-
Why now. Adobe (ADBE) presents a compelling value opportunity for a high-quality compounder, with our model indicating a robust Quality score of 92 and implying only ~2%/yr FCF growth sustained for 10 years, far below its actual 11.5% FY YoY revenue growth. Despite our model's weakest pillar being Growth (86), the market is pricing in undue pessimism, ignoring ADBE's robust profitability, evidenced by a profit margin of 28.7% and a remarkably low PEG ratio of 0.67. The crux is that the market fundamentally undervalues ADBE's ability to compound earnings from its dominant software platforms in both Digital Media and Digital Experience.
Moat. ADBE's enduring moat stems from the high switching costs embedded in its Digital Media segment, where products are industry standards deeply integrated into professional workflows for photographers, video editors, and graphic designers. The Digital Experience segment further reinforces this by providing an integrated platform for critical customer experience management, creating sticky enterprise relationships. This ecosystem, combined with a remarkable 62.8% ROE, signifies exceptional pricing power and operational efficiency derived from its category leadership and essential, difficult-to-replace tools.
Risk. The bear case centers on potential deceleration in ADBE's core growth segments, with the Digital Media segment facing increasing competition from evolving open-source tools and niche SaaS alternatives, which could pressure future subscription growth. This skepticism is reflected in the analyst consensus 1-year target of $270.61, which sits slightly below the current price of $273.47. A sustained deceleration in overall revenue growth below the current 11.5% would confirm that competitive pressures are eroding ADBE's market share and compounding power.
Horizon. 1-3 yr $270.61 (analyst consensus (n=34)) — fundamentals + valuation re-rating. 5 yr $396.19 at ~8% CAGR — compounding case rests on the competitive position widening. 10 yr $587.73 if current growth sustains into durable earnings power.
2. HRMY — Harmony Biosciences Holdings, Inc. · score 88.4
Biotechnology · price $39.66 · 1Y $46.10 · 5Y $67.50 · 10Y $100.12
FCF $355m C · Rev +24.3% A- · D/E 0.16 B+ · P/E 12.8x A · PEG 0.46 A
Why now. The Bull Rankings model indicates Harmony Biosciences is significantly undervalued, with a Value pillar score of 94, suggesting the market is pricing in extreme pessimism. Our reverse DCF analysis implies a -18%/yr free-cash-flow growth sustained for 10 years, a stark contrast to the company's robust 24.3% FY YoY revenue growth. This disconnect, coupled with a compelling 12.8 TTM P/E and a remarkably low 0.46 PEG ratio, presents a strong opportunity for a growth company expanding its WAKIX franchise in narcolepsy and advancing its pipeline for rare neurological diseases like Prader-Willi Syndrome. The crux of the bull case rests on the market's severe underestimation of WAKIX's sustained commercial success and the future contributions from its multi-indication pipeline.
Moat. Harmony's durable edge is centered on WAKIX (pitolisant), a molecule with a novel mechanism of action that provides a distinct therapeutic option for excessive daytime sleepiness in adult patients with narcolepsy. This unique pharmacological profile, combined with its focus on rare neurological diseases, establishes a strong intellectual property barrier and creates inherent switching costs for patients and healthcare providers. Our model's signal of "Durable high returns" reinforces the sustainability of its commercial success and the potential for pipeline assets, such as Pitolisant in Phase 3 for Prader-Willi Syndrome, to extend this competitive advantage into new, underserved indications.
Risk. Skeptics would highlight Harmony Biosciences' significant pipeline execution risk, a concern subtly reflected in our model's weakest pillar, Quality, scoring 80. The company's heavy reliance on Pitolisant across multiple indications (narcolepsy, Prader-Willi Syndrome, Myotonic Dystrophy) creates concentration risk; any clinical trial setback or unexpected safety issue could severely impact future growth prospects. While debt-to-equity is low at 0.16, sustained pressure on the 18.9% profit margin from increased R&D costs or competitive entrants in the rare neurological disease space would confirm the bear case, signaling that the company's growth story is more fragile than its current valuation implies.
Horizon. 1-3 yr $46.10 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $67.50 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $100.12 if current growth sustains into durable earnings power.
3. NBIX — Neurocrine Biosciences, Inc. · score 88.1
Drug Manufacturers - Specialty & Generic · price $156.59 · 1Y $211.57 · 5Y $309.76 · 10Y $459.51
FCF $870m C+ · Rev +34.4% A · D/E 0.12 B+ · P/E 22.9x B+ · PEG 0.45 A
Why now. INGREZZA is the compounding engine: revenue growth of +34% in FY26 YoY is turbocharged by a $870M free-cash-flow machine with 21% profit margins, and the Bull Rankings model gives this growth pillar a 96/100 score. The crux is that INGREZZA’s dominance in tardive dyskinesia and chorea associated with Huntington’s disease locks in pricing power and repeat prescriptions, ensuring the growth rate persists as new indications expand.
Moat. The moat is written in the numbers: 19.1% ROE is not generic outperformance — it’s driven by category leadership in INGREZZA, where Neurocrine’s first-mover advantage in VMAT2 inhibition creates a switching cost for neurologists and payers alike. The pipeline (NBI-1076986 for movement disorders, Osavampator for MDD) is defended by orphan-drug exclusivity and a near-zero debt load (D/E of 0.12), leaving competitors to chase IP or clinical endpoints rather than undercut price.
Risk. The bear case is simple: PE of 22.9x is rich for a growth stock, and the Bull Rankings model flags dilution risk as the weakest pillar (Quality 81/100). If INGREZZA’s growth decelerates below 20% or margin pressure from payer pushback hits the 21% profit margin, the multiple crushes the stock. The concrete signal to confirm the bear thesis? A quarter where revenue growth drops below 25% YoY without a compensating pipeline win.
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.
4. DLO — DLocal Limited · score 87.5
Software - Infrastructure · price $15.36 · 1Y $18.40 · 5Y $26.94 · 10Y $39.96
FCF $413m C · Rev +46.6% A · D/E 0.12 B+ · P/E 22.6x B+ · PEG 0.71 A-
Why now. Software - Infrastructure · market cap $4.5b. 8% off the 52-week high of $16.78. Revenue growing +47% — in hypergrowth territory. PEG 0.71 — paying under fair value for the growth rate. 10 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $18.40 (implying +20% 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 35% — 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.
Risk. 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 $18.40 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $26.94 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $39.96 if current growth sustains into durable earnings power.
5. INOD — Innodata Inc. · score 86.4
Information Technology Services · price $55.84 · 1Y $122.75 · 5Y $179.72 · 10Y $266.60
FCF $184m C · Rev +39.0% A · D/E 0.02 A- · P/E 43.3x C+ · PEG 0.87 B+
Why now. INOD is the AI data supply chain for the model-training market, and the Digital Data Solutions (DDS) segment is the engine: revenue growth of 39% YoY proves the demand is real, not hype, while 14.7% profit margins show the business can scale without subsidizing growth. The crux is that every new foundation model and every safety-aligned model needs the same data pipeline INOD owns, locking in repeat revenue from the same customer base.
Moat. The moat is embedded in the DDS segment’s workflow: once a customer integrates INOD’s AI-enabled platforms for data labeling, model evaluation, and deployment, switching costs rise because retraining downstream models on a new provider’s outputs is prohibitively expensive. The 29.1% ROE isn’t generic pricing power—it’s the return on capital tied to a proprietary data pipeline that competitors can’t replicate without years of customer-specific tuning.
Risk. The bear case is that the P/E of 43.3x assumes the 39% revenue growth persists forever, but if AI model budgets tighten, INOD’s high-beta 2.92 beta will amplify the drawdown. The concrete signal that breaks the bull thesis is a single quarter of revenue growth below 20%—the point where the market realizes the growth is cyclical, not structural.
Horizon. 1-3 yr $122.75 (analyst consensus (n=4)) — fundamentals + valuation re-rating. 5 yr $179.72 at ~26% CAGR — compounding case rests on the competitive position widening. 10 yr $266.60 if current growth sustains into durable earnings power.
6. NVDA — NVIDIA Corporation · score 86.3
Semiconductors · price $209.66 · 1Y $305.79 · 5Y $447.71 · 10Y $664.15
FCF $127.0b A · Rev +83.4% A · D/E 0.07 A- · P/E 32.1x B · PEG 0.59 A-
Why now. NVIDIA is the undisputed king of AI infrastructure, and its Compute & Networking segment is the engine driving a 83.4% revenue surge in the last fiscal year. With $127B in trailing free cash flow, the company is minting cash at a rate that funds dividends, buybacks, and R&D without leverage — a debt-to-equity of 0.07 proves it. The crux: AI demand is not a cycle; it's a secular shift, and NVIDIA's data center platforms are the rails for every hyperscaler and enterprise racing to deploy LLMs and generative AI.
Moat. The moat is the Compute & Networking stack: CUDA, TensorRT, and the Hopper architecture form a proprietary ecosystem that locks in developers and data centers. Switching costs are brutal — migrating off NVIDIA's stack means rewriting years of optimized code, a non-starter for hyperscalers like AWS, Microsoft, and Google. The 84.2% ROE isn't just pricing power; it's pricing power from category leadership in AI accelerators, where competitors like AMD and Intel are years behind in software integration and ecosystem depth.
Risk. The bear case is simple: if AI capex slows, NVIDIA's P/E of 32.1 and beta of 2.21 will punish shareholders. The stock already assumes a 47% annual FCF growth for a decade — a pace that would require AI demand to outpace even the most aggressive analyst forecasts. The concrete signal to sell: a year-over-year revenue deceleration below 40% in the next fiscal year, which would break the secular growth thesis and force a multiple reset.
Horizon. 1-3 yr $305.79 (analyst consensus (n=58)) — fundamentals + valuation re-rating. 5 yr $447.71 at ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $664.15 if current growth sustains into durable earnings power.
7. PGY — Pagaya Technologies Ltd. · score 86.1
Software - Infrastructure · price $22.41 · 1Y $29.20 · 5Y $42.75 · 10Y $63.42
FCF $252m C · Rev +25.6% A- · D/E 1.34 C · P/E 15.9x A- · PEG 0.04 A
Why now. Pagaya’s Decline Monetization product turns a cost center—rejected loan applications—into a revenue engine by routing them to its network of partners, and the numbers prove it’s working: 25.6% YoY revenue growth with 9.1% profit margins and $252M in free cash flow over the TTM. This isn’t just growth; it’s compounding leverage from a product that monetizes data science at scale, and the 15.9 P/E suggests the market hasn’t priced in the full runway. The crux? Whether its network effects in financial services will lock in partners long-term.
Moat. The moat is the network of institutional partners feeding Pagaya’s AI models, creating a data flywheel where more applications improve model accuracy, which in turn attracts more partners. The ROE of 19.5% reflects this pricing power—partners pay for access to a system that reduces their own credit losses, a moat that’s hard to replicate without the same scale. Competitors can build AI models, but they can’t overnight assemble the same breadth of partner relationships or the proprietary data that comes with them.
Risk. The bear case is simple: Pagaya’s debt-to-equity of 1.34 and beta of 5.37 mean it’s a levered bet on a single secular trend—AI-driven financial services—with no margin for error. If credit markets tighten or its model accuracy decays, revenue growth could reverse, and the high P/E of 15.9 would look reckless. The concrete signal to sell? A sustained drop in revenue growth below 15% or a contraction in profit margins below 7%—both would break the thesis.
Horizon. 1-3 yr $29.20 (analyst consensus (n=10)) — fundamentals + valuation re-rating. 5 yr $42.75 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $63.42 if current growth sustains into durable earnings power.
8. GDDY — GoDaddy Inc. · score 85.4
Software - Infrastructure · price $95.54 · 1Y $104.53 · 5Y $153.05 · 10Y $227.04
FCF $1.7b C+ · Rev +7.4% B · D/E n/a · P/E 14.2x A- · PEG 0.68 A-
Why now. GoDaddy is compounding free cash flow at a 14% yield ($1.7B TTM) while growing revenue at 7.4% — a rare combination where capital discipline (buybacks) turbocharges per-share earnings. The bull rankings model gives GDDY a Quality-growth score of 85.4, with Quality at 95, meaning the engine is pristine: recurring subscription revenue from Websites + Marketing and Managed WordPress locks in cash flow, and management is returning it via buybacks. The crux is whether this compounding persists as the Core Platform segment (domain registrations, hosting) stabilizes and A&C (e-commerce tools) accelerates.
Moat. The moat is built on sticky SMB customer bases that churn at <10% annually, thanks to integrated stacks like Websites + Marketing and Managed WordPress that bundle design, SEO, and commerce tools into one workflow. GoDaddy’s scale in domain registrations creates a cost advantage in infrastructure and a distribution flywheel: more domains drive more traffic to its hosting and marketing tools, which in turn attract more domains. Competitors can’t replicate this overnight because the switching cost for a small business is the sunk time and data in GoDaddy’s ecosystem.
Risk. The bear case is that GoDaddy’s P/E of 14.2x assumes growth in A&C (e-commerce tools) offsets deceleration in Core Platform (domains/hosting), but if e-commerce competition from Shopify or Wix intensifies, revenue growth could slow below 7.4%, pressuring margins. The model’s weakest pillar—Growth at 75—flags this risk: the implied -15%/yr FCF growth in a reverse DCF suggests the market is pricing in heavy optimism. Confirm the bear case if A&C growth dips below 5% or Core Platform revenue contracts.
Horizon. 1-3 yr $104.53 (analyst consensus (n=15)) — fundamentals + valuation re-rating. 5 yr $153.05 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $227.04 if current growth sustains into durable earnings power.
9. INTU — Intuit Inc. · score 84.8
Software - Application · price $345.88 · 1Y $444.50 · 5Y $650.80 · 10Y $965.41
FCF $7.8b B+ · Rev +15.1% B+ · D/E 0.33 B · P/E 21.0x B+ · PEG 0.96 B+
Why now. Intuit is compounding its 15.1% revenue growth by leveraging the flywheel between QuickBooks and Mailchimp, where small-business owners who start with one service inevitably adopt the other for end-to-end financial and marketing automation. With $7.8B in trailing free cash flow and a 21.9% profit margin, the company converts growth into cash at scale—no other software player in SMB financials matches this margin profile while growing mid-teens. The crux: Mailchimp’s revenue run rate is still early in penetrating the small businesses that Intuit already serves through QuickBooks, ensuring years of cross-sell tailwinds.
Moat. Intuit’s moat is built on the switching costs of small-business financial stacks: once a company’s books, payroll, and payments are run through QuickBooks, migrating to a competitor means re-entering years of transaction history, reconfiguring integrations, and retraining staff—barriers that Mailchimp’s CRM and marketing automation deepen by locking in customer data. The 22.2% ROE is sustained by pricing power in core QuickBooks Online tiers and payroll services, where Intuit’s scale in SMB software allows it to undercut rivals on per-employee costs while maintaining premium gross margins. Competitors can replicate features, but not the installed base of users who create network effects in data-driven services like cash-flow forecasting.
Risk. The bear case is that Intuit’s P/E of 21 is too rich for a growth name when the Bull Rankings model’s reverse DCF implies just -2% free-cash-flow growth for a decade—an assumption that collapses if Mailchimp’s growth slows below 10% or QuickBooks’ churn ticks up amid rising SMB pricing sensitivity. Credit Karma’s consumer segment, though not quantified here, remains a wildcard: any misstep in its credit-monitoring model or regulatory scrutiny could pressure margins and distract from the core SMB flywheel. The concrete signal to sell: sequential deceleration in QuickBooks Online subscriber growth below 8% YoY for two consecutive quarters.
Horizon. 1-3 yr $444.50 (analyst consensus (n=33)) — fundamentals + valuation re-rating. 5 yr $650.80 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $965.41 if current growth sustains into durable earnings power.
10. DOCS — Doximity, Inc. · score 84.6
Health Information Services · price $24.74 · 1Y $29.78 · 5Y $43.60 · 10Y $64.67
FCF $306m C · Rev +11.2% B · D/E 0.01 A- · P/E 29.5x B · PEG 0.59 A-
Why now. Doximity’s Ask AI assistant is the compounding engine: 25.5% profit margins on $306m of trailing free cash flow show the platform’s monetization power, while 11.2% revenue growth proves demand resilience among U.S. clinicians. The crux is that HIPAA-compliant AI workflow tools like Ask embed Doximity into daily clinical routines, creating stickiness that competitors can’t replicate overnight.
Moat. The moat is the network of U.S. clinicians who generate proprietary clinical insights and peer interactions, feeding the newsfeed and Ask’s AI training data. ROE of 18.2% reflects pricing power from category leadership in physician-focused workflow tools, where switching costs are high due to integration with EHR systems and compliance requirements.
Risk. The bear case is that Ask’s AI hype fades: P/E of 29.5x assumes sustained growth, but if adoption stalls, margins compress and the stock reprices to a lower multiple. The concrete signal to confirm the bear case is Ask’s quarterly active user growth decelerating below 5% YoY for two consecutive quarters.
Horizon. 1-3 yr $29.78 (analyst consensus (n=18)) — fundamentals + valuation re-rating. 5 yr $43.60 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $64.67 if current growth sustains into durable earnings power.
11. APP — AppLovin Corporation · score 84.2
Advertising Agencies · price $308.11 · 1Y $526.39 · 5Y $770.68 · 10Y $1,143
FCF $4.5b B · Rev +60.6% A · D/E 1.11 C+ · P/E 23.7x B · PEG 0.86 B+
Why now. AppLovin is a compounding machine because MAX, its in-app bidding platform, turns publisher inventory into a high-margin arbitrage engine: 64.6% profit margin on $4.5B of free cash flow proves the model scales without capital intensity. The bull rankings model gives it a Quality-growth score of 84.2/100 with Growth at 96/100, the strongest pillar, because revenue grew 60.6% YoY while competitors stall. The crux is whether MAX’s real-time auction mechanics can sustain this margin as it penetrates connected TV via Wurl and global mobile inventory.
Moat. The moat is MAX’s real-time bidding network, which creates a flywheel: more demand (advertisers) attracts more supply (publishers), which lowers fill rates for competitors and raises eCPMs for AppLovin. Wurl’s connected TV distribution locks in premium video inventory, and Adjust’s analytics feed back into MAX’s optimization loop, creating switching costs for publishers. The 64.6% margin isn’t just pricing power—it’s the result of owning the entire ad stack from measurement (Adjust) to monetization (MAX) to distribution (Wurl).
Risk. The bear case is that AppLovin’s P/E of 23.7x and debt-to-equity of 1.11 imply the market is pricing in a decade of 14% FCF growth, which is aggressive against a beta of 2.53 that amplifies drawdowns. Competitors like Google and Meta are rolling out in-house bidding tools, and if MAX’s auction efficiency erodes, margins compress toward industry norms. The signal that breaks the bull thesis is MAX’s eCPM growth decelerating below 10% for two consecutive quarters—proof the network effect is weakening.
Horizon. 1-3 yr $526.39 (analyst consensus (n=31)) — fundamentals + valuation re-rating. 5 yr $770.68 at ~20% CAGR — compounding case rests on the competitive position widening. 10 yr $1,143 if current growth sustains into durable earnings power.
12. CARG — CarGurus, Inc. · score 83.5
Auto & Truck Dealerships · price $36.20 · 1Y $41.38 · 5Y $60.59 · 10Y $89.88
FCF $315m C · Rev +13.9% B+ · D/E 0.70 B+ · P/E 18.7x B · PEG 1.07 B+
Why now. CarGurus is compounding 13.9% revenue growth while converting 18.2% of sales to profit, and our model gives it a Quality-growth score of 83.5/100 with Quality at 88 — the highest pillar — because it monetizes a captive dealer network through subscription fees and advertiser partnerships anchored by its Digital Deal product. The crux: dealers pay for access to the largest U.S. online car-shopping audience, and that flywheel is accelerating as $315M in TTM free cash flow funds buybacks that shrink share count into a growing earnings base.
Moat. The moat is the integrated dealer network: dealers subscribe to CarGurus for lead generation and use Dealership Mode to convert online shoppers into showroom visits, creating a switching cost that rivals can't replicate without duplicating the entire dealer ecosystem. ROE of 66.6% isn't just pricing power — it's the result of recurring subscription revenue from dealers and high-margin advertiser partnerships, a model that compounds as the dealer base grows and engagement deepens.
Risk. The bear case is that the P/E of 18.7x is rich for a name where our reverse DCF implies -3%/yr FCF growth for a decade, and dealer concentration risk looms if auto manufacturers bypass CarGurus to sell directly via Digital Deal. The signal to watch: if subscription revenue growth decelerates below 10% or if the debt-to-equity ratio rises above 1.0, the bull thesis breaks because the model's Value pillar (78/100) can't justify the premium.
Horizon. 1-3 yr $41.38 (analyst consensus (n=13)) — fundamentals + valuation re-rating. 5 yr $60.59 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $89.88 if current growth sustains into durable earnings power.
13. EPAM — EPAM Systems, Inc. · score 82
Information Technology Services · price $109.36 · 1Y $122.82 · 5Y $179.83 · 10Y $266.76
FCF $483m C · Rev +10.8% B · D/E 0.04 A- · P/E 14.8x A- · PEG 0.59 A-
Why now. EPAM’s digital platform engineering franchise is exploding in the cloud migration wave, driving a 10.8% YoY revenue growth while delivering a lean PE of 14.8x and a robust $483 m of free cash flow. The Bull Rankings model rates its Value pillar at 91, underscoring that the stock is cheap relative to peers, and the model’s buy‑back signal adds further upside. The thesis hinges on continued demand for EPAM’s cloud‑services and AI‑enabled platforms, which should keep compounding cash flow at a rate that outpaces the modest 4% implied by the reverse‑DCF.
Moat. EPAM’s moat lies in its end‑to‑end digital engineering platform that locks in large enterprise clients through deep integration, custom migration, and ongoing automation services—making switching costly and time‑consuming. Its ROE of 11.4% reflects pricing power from being the go‑to partner for complex, cross‑industry digital transformations, a capability few pure‑play consultancies can replicate quickly.
Risk. The bear case focuses on the modest quality score of 73, indicating execution risk; a PE of 14.8x, while low, still embeds expectations of sustained growth that may be hard to meet if cloud spend slows. A beta of 1.37 amplifies market volatility, and any slowdown in the 10.8% revenue growth trajectory would force the stock toward its 52‑week low of $73.06. A miss on quarterly guidance would confirm the risk and crush the upside.
Horizon. 1-3 yr $122.82 (analyst consensus (n=17)) — fundamentals + valuation re-rating. 5 yr $179.83 at ~10% 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 81.9
Education & Training Services · price $84.58 · 1Y $97.27 · 5Y $142.41 · 10Y $211.25
FCF $433m C · Rev +4.7% C+ · D/E 0.33 A- · P/E 11.8x A · PEG 0.50 A
Why now. Stride is the quiet compounder in a consolidating U.S. education market, and the numbers prove it: 13.4% profit margins on $433M of trailing free cash flow, with a debt-to-equity of 0.33 that keeps the balance sheet pristine. The company’s end-to-end platform—single sign-on for content management, learning management, and analytics—locks in sticky K-12 districts and career-focused adult learners, while proprietary curriculum in software engineering and healthcare ties directly to in-demand job markets. The crux: this is a high-quality growth compounder trading at a PEG of 0.5, where the market is pricing in pessimism that the model’s 81.9/100 Quality-Growth score (strongest pillar: Value at 96) says is unwarranted.
Moat. The moat is the integrated platform itself: districts and adult learners don’t bolt on a new learning management system every year, and switching costs are high because the single sign-on ties curriculum, analytics, and student data into one workflow. ROE of 20.7% isn’t from leverage—it’s from pricing power in state-customized coursework where Stride’s software engineering and healthcare curricula are category leaders. Competitors can license content, but replicating the end-to-end platform with the same depth of analytics and support systems would take years and burn cash; Stride’s flywheel compounds as more districts adopt the platform, locking in data network effects.
Risk. The bear case is simple: if K-12 funding cycles soften or adult enrollment in career-focused programs rolls over, revenue growth of 4.7% could stall while the P/E of 11.8x looks less justified. The model’s reverse DCF implies ~-11%/yr free-cash-flow growth for a decade—an aggressive assumption that requires secular tailwinds to hold. The concrete signal to confirm the bear case? A second consecutive year of sub-5% revenue growth paired with margin compression below 12%.
Horizon. 1-3 yr $97.27 (structural (no analyst coverage)) — fundamentals + valuation re-rating. 5 yr $142.41 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $211.25 if current growth sustains into durable earnings power.
15. ADMA — ADMA Biologics, Inc. · score 81.8
Biotechnology · price $9.63 · 1Y $17.00 · 5Y $24.89 · 10Y $36.92
FCF $116m C · Rev +8.0% B · D/E 1.11 C · P/E 13.8x A- · PEG 0.59 A-
Why now. ADMA is a compounding machine disguised as a $2.2B biotech: its 41.4% ROE and 33% profit margins prove it can turn every dollar of revenue into cash at scale, and the model's 81.8/100 Quality-growth score (with Value at 85) confirms the setup isn't just luck. The company's BIVIGAM and ASCENIV IVIG franchises treat primary humoral immunodeficiency (PI) — a chronic, recurring condition that locks patients into lifelong therapy — guaranteeing recurring revenue per patient and pricing power from category leadership. The crux? ADMA's 8% revenue growth is understated: PI prevalence is rising with demographics, and the company's Plasma Collection Centers segment secures raw material supply, making the growth durable.
Moat. ADMA's moat is built on plasma-derived biologics manufacturing — a capital-intensive, FDA-regulated process where scale and compliance create winner-take-all dynamics. The ADMA BioManufacturing segment operates at 41.4% ROE, a figure driven by pricing power in IVIG (a U.S. market) and near-monopoly access to plasma from its own collection centers. Competitors can't replicate the integrated model quickly: plasma collection requires donor networks, and biologics manufacturing demands specialized facilities and FDA approvals. Nabi-HB's niche in Hepatitis B exposure treatment further diversifies demand without cannibalizing the core IVIG franchise.
Risk. The bear case hinges on plasma supply volatility: ADMA's debt-to-equity of 1.11 reflects leverage tied to plasma collection, a segment exposed to donor availability and regulatory scrutiny. If plasma yields drop or FDA inspections stall operations, margins compress and growth stalls — a risk the P/E of 13.8x doesn't price in. The concrete signal to watch is plasma collection throughput: a sustained decline below 2025 levels would break the bull thesis by proving the integrated model isn't as resilient as advertised.
Horizon. 1-3 yr $17.00 (analyst consensus (n=5)) — fundamentals + valuation re-rating. 5 yr $24.89 at ~21% CAGR — compounding case rests on the competitive position widening. 10 yr $36.92 if current growth sustains into durable earnings power.
16. EXLS — ExlService Holdings, Inc. · score 81.3
Information Technology Services · price $37.50 · 1Y $44.38 · 5Y $64.97 · 10Y $96.38
FCF $297m C · Rev +13.4% B+ · D/E 0.57 C+ · P/E 23.7x B+ · PEG 1.11 B+
Why now. Information Technology Services · market cap $5.7b. 17% off the 52-week high of $45.08. Revenue growing +13%, comfortably above the S&P median. 8 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $44.38 (implying +18% 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 ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $96.38 if current growth sustains into durable earnings power.
17. RMD — ResMed Inc. · score 81
Medical Instruments & Supplies · price $235.69 · 1Y $245.50 · 5Y $359.44 · 10Y $533.20
FCF $1.6b C+ · Rev +9.9% B · D/E 0.13 B+ · P/E 22.6x B+ · PEG 1.34 B
Why now. Medical Instruments & Supplies · market cap $34.0b. 17% off the 52-week high of $285.08. 16 sell-side analysts rate this a Buy with a mean 1-yr target of $245.50 (implying +4% 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% is above 15% — 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 $245.50 (analyst consensus (n=16)) — fundamentals + valuation re-rating. 5 yr $359.44 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $533.20 if current growth sustains into durable earnings power.
18. FISV — Fiserv, Inc. · score 80.9
Sector n/a · price $52.45 · 1Y $61.79 · 5Y $78.00 · 10Y $100.04
FCF $3.9b B · Rev +9.3% B · D/E n/a · P/E 10.0x A- · PEG 0.85 B+
Why now. Sector n/a · market cap $27.9b. Down 62% from 52-week high of $138.85 — deep drawdown territory. PEG 0.85 — paying under fair value for the growth rate. 28 sell-side analysts rate this a Hold with a mean 1-yr target of $61.79 (implying +18% 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 62% 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 $61.79 (analyst consensus (n=28)) — multiple re-rating thesis requires a catalyst. 5 yr $78.00 at ~8% CAGR — dividend + buyback compounding. 10 yr $100.04 if the moat survives secular pressure.
19. DECK — Deckers Outdoor Corporation · score 80
Footwear & Accessories · price $89.47 · 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 1.09 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. GMED — Globus Medical, Inc. · score 79.4
Medical Devices · price $83.10 · 1Y $103.23 · 5Y $151.14 · 10Y $224.21
FCF $756m C+ · Rev +19.7% B+ · D/E 0.02 A- · P/E 21.3x B+ · PEG 1.49 B
Why now. Medical Devices · market cap $11.2b. 18% 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 +24% 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 ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $224.21 if current growth sustains into durable earnings power.
21. META — Meta Platforms, Inc. · score 79.1
Internet Content & Information · price $576.14 · 1Y $754.14 · 5Y $952.09 · 10Y $1,221
FCF $41.0b A · Rev +27.7% A- · D/E 0.43 B+ · P/E 21.7x B · PEG 0.82 B+
Why now. Internet Content & Information · market cap $1.5T. Down 27% from 52-week high of $790.80 — deep drawdown territory. Revenue growing +28% — in hypergrowth territory. PEG 0.82 — 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 +31% upside).
Moat. Net margin 30% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 26% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $1.5T market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk. Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon. 1-3 yr $754.14 (analyst consensus (n=57)) — multiple re-rating thesis requires a catalyst. 5 yr $952.09 at ~11% CAGR — dividend + buyback compounding. 10 yr $1,221 if the moat survives secular pressure.
22. BSX — Boston Scientific Corporation · score 79
Medical Devices · price $48.17 · 1Y $62.69 · 5Y $79.14 · 10Y $101.50
FCF $3.6b B · Rev +13.5% B+ · D/E 0.50 B · P/E 19.5x A- · PEG 0.72 A-
Why now. Medical Devices · market cap $69.8b. Down 56% from 52-week high of $109.50 — deep drawdown territory. Revenue growing +14%, comfortably above the S&P median. PEG 0.72 — paying under fair value for the growth rate. 29 sell-side analysts rate this a Buy with a mean 1-yr target of $62.69 (implying +30% 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 15% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. FCF converts 99% 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 $62.69 (analyst consensus (n=29)) — multiple re-rating thesis requires a catalyst. 5 yr $79.14 at ~10% CAGR — dividend + buyback compounding. 10 yr $101.50 if the moat survives secular pressure.
23. CPAY — Corpay, Inc. · score 78.4
Software - Infrastructure · price $406.93 · 1Y $454.57 · 5Y $573.89 · 10Y $735.99
FCF $1.6b C+ · Rev +20.4% A- · D/E 2.75 D · P/E 24.7x B+ · PEG 0.94 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 0.94 — paying under fair value for the growth rate. 14 sell-side analysts rate this a Buy with a mean 1-yr target of $454.57 (implying +12% 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 $454.57 (analyst consensus (n=14)) — multiple re-rating thesis requires a catalyst. 5 yr $573.89 at ~7% CAGR — dividend + buyback compounding. 10 yr $735.99 if the moat survives secular pressure.
24. VEEV — Veeva Systems Inc. · score 78
Health Information Services · price $244.91 · 1Y $255.93 · 5Y $374.70 · 10Y $555.84
FCF $1.7b C+ · Rev +16.2% B+ · D/E 0.01 A- · P/E 43.3x C · PEG 1.11 B+
Why now. Health Information Services · market cap $39.8b. Down 21% from 52-week high of $310.50 — deep drawdown territory. Revenue growing +16%, comfortably above the S&P median. 27 sell-side analysts rate this a Buy with a mean 1-yr target of $255.93 (implying +4% 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 12.0x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon. 1-3 yr $255.93 (analyst consensus (n=27)) — fundamentals + valuation re-rating. 5 yr $374.70 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $555.84 if current growth sustains into durable earnings power.
25. WMG — Warner Music Group Corp. · score 77.1
Entertainment · price $27.93 · 1Y $36.88 · 5Y $46.56 · 10Y $59.72
FCF $836m C+ · Rev +12.9% B+ · D/E 4.53 D · P/E 22.3x B · PEG 0.50 A
Why now. Entertainment · market cap $14.6b. Down 21% from 52-week high of $35.42 — deep drawdown territory. Revenue growing +13%, comfortably above the S&P median. PEG 0.50 — paying under fair value for the growth rate. 17 sell-side analysts publish a mean 1-yr target of $36.88 (implying +32% 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 ~11% CAGR — dividend + buyback compounding. 10 yr $59.72 if the moat survives secular pressure.
26. EME — EMCOR Group, Inc. · score 75.4
Engineering & Construction · price $763.59 · 1Y $1,033 · 5Y $1,304 · 10Y $1,673
FCF $1.2b C+ · Rev +18.9% B+ · D/E 0.13 A- · P/E 23.8x B+ · PEG 0.39 A
Why now. Engineering & Construction · market cap $33.7b. 20% off the 52-week high of $951.96. Revenue growing +19%, comfortably above the S&P median. PEG 0.39 — 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 +35% 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 ~11% CAGR — dividend + buyback compounding. 10 yr $1,673 if the moat survives secular pressure.
27. CCK — Crown Holdings, Inc. · score 75.3
Packaging & Containers · price $119.08 · 1Y $136.57 · 5Y $172.42 · 10Y $221.12
FCF $1.2b C+ · Rev +10.3% B · D/E 1.86 C+ · P/E 17.1x B+ · PEG 0.64 A-
Why now. Packaging & Containers · market cap $13.0b. 3% off the 52-week high of $122.91. Revenue growing +10%, comfortably above the S&P median. PEG 0.64 — paying under fair value for the growth rate. 14 sell-side analysts publish a mean 1-yr target of $136.57 (implying +15% upside).
Moat. ROE 27% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 153% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon. 1-3 yr $136.57 (analyst consensus (n=14)) — multiple re-rating thesis requires a catalyst. 5 yr $172.42 at ~8% CAGR — dividend + buyback compounding. 10 yr $221.12 if the moat survives secular pressure.
28. YUMC — Yum China Holdings, Inc. · score 75.3
Restaurants · price $47.18 · 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 1.24 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% is above 15% — 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. VRT — Vertiv Holdings Co · score 74.4
Electrical Equipment & Parts · price $263.81 · 1Y $338.15 · 5Y $495.09 · 10Y $734.43
FCF $2.9b B · Rev +26.2% A- · D/E 0.70 B · P/E 59.7x D · PEG 1.23 B
Why now. Electrical Equipment & Parts · market cap $101.6b. Down 31% from 52-week high of $379.94 — deep drawdown territory. Revenue growing +26% — in hypergrowth territory. 26 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $338.15 (implying +28% upside).
Moat. Net margin 15% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 36% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 169% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk. Trailing P/E 59.7x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. 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. Beta 2.08 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.
Horizon. 1-3 yr $338.15 (analyst consensus (n=26)) — fundamentals + valuation re-rating. 5 yr $495.09 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $734.43 if current growth sustains into durable earnings power.
30. STRL — Sterling Infrastructure, Inc. · score 74.1
Engineering & Construction · price $497.41 · 1Y $876.00 · 5Y $1,283 · 10Y $1,903
FCF $482m C · Rev +60.8% A · D/E 0.24 A- · P/E 35.9x C+ · PEG 0.88 B+
Why now. Engineering & Construction · market cap $15.2b. Down 51% from 52-week high of $1005.68 — deep drawdown territory. Revenue growing +61% — in hypergrowth territory. PEG 0.88 — paying under fair value for the growth rate. 7 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $876.00 (implying +76% upside).
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 32% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 112% 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. Beta 1.89 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 36x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon. 1-3 yr $876.00 (analyst consensus (n=7)) — fundamentals + valuation re-rating. 5 yr $1,283 at ~21% CAGR — compounding case rests on the competitive position widening. 10 yr $1,903 if current growth sustains into durable earnings power.
Methodology footnote
Every pick on this list comes out of the same quality-growth model — one 0–100 score blending quality, growth, and value — applied to every US-listed common stock with a market cap above $1B. Each pick's score breakdown is auditable from the home page — click the ticker on the rankings page to see exactly which grades produced the number. Not investment advice. See terms for full disclosures.