Top 20 stocks ranked by Q-Score from the StockConviction engine. The Q-Score measures fundamental quality: profitability, financial soundness, growth.
The Q-Score is a 0-to-100 rating that evaluates a company's fundamental quality across three axes: profitability (ROIC, free cash flow margin), financial soundness (debt level, repayment capacity) and growth (5-year revenue, business model scalability). The higher the Q-Score, the more consistently and predictably the company generates value.
Unlike approaches based solely on share price or P/E ratio, the StockConviction engine analyzes point-in-time fundamental data for 500+ S&P 500 companies — the data as it was known at each moment, without hindsight bias.
Investing in quality stocks is not reserved for experts. This list ranks the top 20 companies: solid businesses, healthy balance sheets, proven cash generation. A serious starting point for building a long-term portfolio, even when you're new to investing.
| # | Company | Q-Score | Conviction | Zone |
|---|---|---|---|---|
| 1 | Texas Pacific Land Corporation (TPL) | 100/100 | No conviction | Slightly overvalued |
| 2 | Medpace Holdings, Inc. (MEDP) | 100/100 | Patient buy conviction | Undervalued |
| 3 | ASML Holding N.V. (ASML) | 98.5/100 | Patient buy conviction | Undervalued |
| 4 | Arista Networks, Inc. (ANET) | 96.3/100 | No conviction | Slightly overvalued |
| 5 | Eli Lilly and Company (LLY) | 95/100 | Patient buy conviction | Fairly valued |
| 6 | AppLovin Corporation (APP) | 95/100 | No conviction | Slightly overvalued |
| 7 | Copart, Inc. (CPRT) | 94.45/100 | Wait for stabilization | Undervalued |
| 8 | Fortinet, Inc. (FTNT) | 94.35/100 | Patient buy conviction | Fairly valued |
| 9 | Palantir Technologies Inc. (PLTR) | 92.9/100 | No conviction | Overvalued |
| 10 | Paycom Software, Inc. (PAYC) | 92.9/100 | Buy conviction | Undervalued |
| 11 | Mastercard Incorporated (MA) | 91.5/100 | Buy conviction | Undervalued |
| 12 | Devon Energy Corporation (DVN) | 91.4/100 | Buy conviction | Undervalued |
| 13 | Newmont Corporation (NEM) | 90.15/100 | No conviction | Fairly valued |
| 14 | NVIDIA Corporation (NVDA) | 90/100 | Buy conviction | Undervalued |
| 15 | Booking Holdings Inc. (BKNG) | 90/100 | Buy conviction | Undervalued |
| 16 | Seagate Technology Holdings plc (STX) | 90/100 | No conviction | Overvalued |
| 17 | Expedia Group, Inc. (EXPE) | 89.7/100 | Patient buy conviction | Undervalued |
| 18 | KLA Corporation (KLAC) | 89.4/100 | No conviction | Overvalued |
| 19 | Incyte Corporation (INCY) | 89.3/100 | Patient buy conviction | Undervalued |
| 20 | Airbnb, Inc. (ABNB) | 89.2/100 | Patient buy conviction | Undervalued |
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