@QCompounding: 20 Quality Stocks you should k...

20 Quality Stocks you should know

Monopolies and oligopolies outperform the market over time.

Here are 20 stocks which should beat the S&P 500:

Company 1: S&P Global ($SPGI)

S&P Global provides clients with financial information services (credit ratings, benchmarks, ...) in the capital and commodity markets.

- FCF margin: 42.9%
- ROCE: 126.3%
- FCF yield: 3.8%
- Exp. FCF growth (3 yr): 16.9%
- CAGR since IPO: 13.7%

Company 2: ASML ($ASML)

ASML is a monopolistic player in semiconductor chip machines through lithography. Over the next years, demand for semiconductors will explode.

- FCF margin: 53.4%
- ROCE: 41.5%
- FCF yield: 2.1%
- Exp. FCF growth ( 3 yr): 18.3%
- CAGR since IPO: 25.3%

Company 3: Novo Nordisk ($NOVO-B)

Novo Nordisk is active in diabetes treatment. More and more people will suffer from diabetes due to our aging population and obesity.

- FCF margin: 34.6%
- ROCE: 101.9%
- FCF yield: 3.0%
- Exp; FCF growth (3 yr): 15.6%
- CAGR since IPO: 19.9%

Company 4: Mastercard ($MA)

Together with Visa, Mastercard dominates the attractive market of financial transaction processing.

- FCF margin: 48.0%
- ROCE: 188.5%
- FCF yield: 2.6%
- Exp. FCF growth ( 3 yr): 15.8%
- CAGR since IPO: 31.0%

Company 5: Microsoft ($MSFT)

Everyone knows Microsoft and you will probably use it daily. Microsoft has a very wide moat in software applications and cloud storage.

- FCF margin: 32.9%
- ROCE: 45.4%
- FCF yield: 2.8%
- Exp. FCF growth (3 yr): 15.3%
- CAGR since IPO: 23.0%

Company 6: Blackrock ($BLK)

Do you own an ETF from iShares? That’s a Blackrock product. BlackRock provides investment management services to investors.

- FCF margin: 23.8%
- ROCE: 11.7%
- FCF yield: 5.1%
- Exp. FCF growth (3 yr): 12.3%
- CAGR since IPO: 19.8%

Company 7: Thermo Fisher ($TMO)

Thermo Fisher manufactures scientific instruments, consumables, and chemicals. The company has a wide moat with attractive margins.

- FCF margin: 17.3%
- ROCE: 46.1%
- FCF yield: 3.3%
- Exp. FCF growth (3 yr): 10.1%
- CAGR since IPO: 13.5%

Company 8: Automatic Data Processing ($ADP)

ADP s a global provider of business outsourcing solutions. ADP’s services include human resource, payroll and tax solutions.

- FCF margin: 17.7%
- ROCE: 132.6%
- FCF yield 4.6%
- Exp. FCF growth ( 3 yr): 12.5%
- CAGR since IPO: 14.9%

Company 9: Zoetis ($ZTS)

More people are treating their pets as a full family member, and Zoetis fully benefits from this with animal health medicines and vaccines.

- FCF margin: 22.3%
- ROCE: 32.9%
- FCF yield: 2.7%
- Exp FCF growth (3 yr): 10.6%
- CAGR since IPO: 20.9%

Company 10: Union Pacific ($UNP)

Union Pacific is a rail transportation company. The company operates in an oligopoly together with BNSF (part of Berkshire Hathaway).

- FCF margin: 28.0%
- ROCE: 14.2%
- FCF yield: 3.4%
- Exp. FCF growth (3 yr): 8.5%
- CAGR since IPO: 13.3%

Company 11: Moody’s ($MCO)

Just like S&P Global, Moody’s is a credit rating company. Both companies are dominating the credit rating market and still will in 20 years.

- FCF margin: 30.0%
- ROCE: 72.8%
- FCF yield: 2.7%
- Exp. FCF growth (3 yr): 10.0%
- CAGR since IPO: 14.8%

Company 12: Sonova ($SOON)

Sonova is a market leader in premium hearing aids. More and more people are suffering from hearing problems and this is beneficial for Sonova.

- FCF margin: 24.3%
- ROCE: 50.7%
- FCF yield: 4.9%
- Exp. FCF growth (3 yr): 13.3%
- CAGR since IPO: 15.5%

Company 13: Visa ($V)

Visa is a great quality business with a wide moat and incredible profit margins. When you invest in Visa, you invest in a strong secular trend.

- FCF margin: 60.2%
- ROCE: 105.3%
- FCF yield: 3.5%
- Exp. FCF growth (3 yr): 15.5%
- CAGR since IPO: 22.3%

Company 14: Danaher ($DHR)

Danaher is a great acquirer active in medical instruments and life sciences. Furthermore, they also provide COVID tests.

- FCF margin: 24.0%
- ROCE: 60.9%
- FCF yield: 3.6%
- Exp. FCF growth (3 yr): 9.5%
- CAGR since IPO: 19.6%

Company 15: TransUnion ($TRU)

TransUnion operates as a credit reporting agency offering consumer reports, risk scores, analytical services, and decision capabilities.

- FCF margin: 19.7%
- ROCE: 151.7%
- FCF yield: 3.7%
- Exp. FCF growth ( 3 yr): 25.9%
- CAGR since IPO: 15.1%

Company 16: Stryker ($SYK)

Stryker is active in specialty surgical and medical products. Hospitals are very loyal which is beneficial for Stryker.

- FCF margin: 16.0%
- ROCE: 9.1%
- FCF yield: 2.4%
- Expected FCF growth (next 3 years): 12.8%
- CAGR since IPO: 17.9%

Company 17: IDEXX ($IDXX)

Together with Zoetis, IDEXX dominates the American market for animal health medicines and vaccines.

- FCF margin: 19.8%
- ROCE: 86.5%
- FCF yield: 2.2%
- Exp. FCF growth (3 yr): 13.0%
- CAGR since IPO: 20.7%

Company 18: Rightmove ($RMV)

Rightmove is the clear number 1 in the market for selling listed properties in the United Kingdom.

- FCF margin: 63.7%
- ROCE: 287.4%
- FCF yield: 5.0%
- Exp. FCF growth (3 yr): 7.4%
- CAGR since IPO: 19.1%

Company 19: Adobe ($ADBE)

Adobe is a true compounding stock active in computer software products and technologies allowing users to express information across all media.

- FCF margin: 43.6%
- ROCE: 125.2%
- FCF yield: 2.2%
- Exp. FCF growth (3 yr): 20.0%
- CAGR since IPO: 17.6%

Company 20: Copart ($CPRT)

Copart provides vehicle suppliers with services to sell vehicles . The company dominates the market for online car auctions.

- FCF margin: 24.0%
- ROCE: 27.4%
- FCF yield: 2.7%
- Exp. FCF growth (3 yr): 8.2%
- CAGR since IPO: 20.0%

That's it for today.

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