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 ($SPGI)
S&P Global provides clients with financial information services (credit ratings, benchmarks, ...) in the capital and commodity markets.
- FCF margin: 42.9%
- ROCE: 126.3%
- FCF yield: 3.8%
- Exp. FCF growth (3 yr): 16.9%
- CAGR since IPO: 13.7%
S&P Global provides clients with financial information services (credit ratings, benchmarks, ...) in the capital and commodity markets.
- FCF margin: 42.9%
- ROCE: 126.3%
- FCF yield: 3.8%
- Exp. FCF growth (3 yr): 16.9%
- CAGR since IPO: 13.7%
Company 2: ASML ($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%
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 ($NOVO-B)
Novo Nordisk is active in diabetes treatment. More and more people will suffer from diabetes due to our aging population and obesity.
- FCF margin: 34.6%
- ROCE: 101.9%
- FCF yield: 3.0%
- Exp; FCF growth (3 yr): 15.6%
- CAGR since IPO: 19.9%
Novo Nordisk is active in diabetes treatment. More and more people will suffer from diabetes due to our aging population and obesity.
- FCF margin: 34.6%
- ROCE: 101.9%
- FCF yield: 3.0%
- Exp; FCF growth (3 yr): 15.6%
- CAGR since IPO: 19.9%
Company 4: Mastercard ($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%
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 ($MSFT)
Everyone knows Microsoft and you will probably use it daily. Microsoft has a very wide moat in software applications and cloud storage.
- FCF margin: 32.9%
- ROCE: 45.4%
- FCF yield: 2.8%
- Exp. FCF growth (3 yr): 15.3%
- CAGR since IPO: 23.0%
Everyone knows Microsoft and you will probably use it daily. Microsoft has a very wide moat in software applications and cloud storage.
- FCF margin: 32.9%
- ROCE: 45.4%
- FCF yield: 2.8%
- Exp. FCF growth (3 yr): 15.3%
- CAGR since IPO: 23.0%
Company 6: Blackrock ($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%
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 ($TMO)
Thermo Fisher manufactures scientific instruments, consumables, and chemicals. The company has a wide moat with attractive margins.
- FCF margin: 17.3%
- ROCE: 46.1%
- FCF yield: 3.3%
- Exp. FCF growth (3 yr): 10.1%
- CAGR since IPO: 13.5%
Thermo Fisher manufactures scientific instruments, consumables, and chemicals. The company has a wide moat with attractive margins.
- FCF margin: 17.3%
- ROCE: 46.1%
- FCF yield: 3.3%
- Exp. FCF growth (3 yr): 10.1%
- CAGR since IPO: 13.5%
Company 8: Automatic Data Processing ($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%
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 ($ZTS)
More people are treating their pets as a full family member, and Zoetis fully benefits from this with animal health medicines and vaccines.
- FCF margin: 22.3%
- ROCE: 32.9%
- FCF yield: 2.7%
- Exp FCF growth (3 yr): 10.6%
- CAGR since IPO: 20.9%
More people are treating their pets as a full family member, and Zoetis fully benefits from this with animal health medicines and vaccines.
- FCF margin: 22.3%
- ROCE: 32.9%
- FCF yield: 2.7%
- Exp FCF growth (3 yr): 10.6%
- CAGR since IPO: 20.9%
Company 10: Union Pacific ($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%
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 ($MCO)
Just like S&P Global, Moody’s is a credit rating company. Both companies are dominating the credit rating market and still will in 20 years.
- FCF margin: 30.0%
- ROCE: 72.8%
- FCF yield: 2.7%
- Exp. FCF growth (3 yr): 10.0%
- CAGR since IPO: 14.8%
Just like S&P Global, Moody’s is a credit rating company. Both companies are dominating the credit rating market and still will in 20 years.
- FCF margin: 30.0%
- ROCE: 72.8%
- FCF yield: 2.7%
- Exp. FCF growth (3 yr): 10.0%
- CAGR since IPO: 14.8%
Company 12: Sonova ($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%
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 ($V)
Visa is a great quality business with a wide moat and incredible profit margins. When you invest in Visa, you invest in a strong secular trend.
- FCF margin: 60.2%
- ROCE: 105.3%
- FCF yield: 3.5%
- Exp. FCF growth (3 yr): 15.5%
- CAGR since IPO: 22.3%
Visa is a great quality business with a wide moat and incredible profit margins. When you invest in Visa, you invest in a strong secular trend.
- FCF margin: 60.2%
- ROCE: 105.3%
- FCF yield: 3.5%
- Exp. FCF growth (3 yr): 15.5%
- CAGR since IPO: 22.3%
Company 14: Danaher ($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%
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 ($TRU)
TransUnion operates as a credit reporting agency offering consumer reports, risk scores, analytical services, and decision capabilities.
- FCF margin: 19.7%
- ROCE: 151.7%
- FCF yield: 3.7%
- Exp. FCF growth ( 3 yr): 25.9%
- CAGR since IPO: 15.1%
TransUnion operates as a credit reporting agency offering consumer reports, risk scores, analytical services, and decision capabilities.
- FCF margin: 19.7%
- ROCE: 151.7%
- FCF yield: 3.7%
- Exp. FCF growth ( 3 yr): 25.9%
- CAGR since IPO: 15.1%
Company 16: Stryker ($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%
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 ($IDXX)
Together with Zoetis, IDEXX dominates the American market for animal health medicines and vaccines.
- FCF margin: 19.8%
- ROCE: 86.5%
- FCF yield: 2.2%
- Exp. FCF growth (3 yr): 13.0%
- CAGR since IPO: 20.7%
Together with Zoetis, IDEXX dominates the American market for animal health medicines and vaccines.
- FCF margin: 19.8%
- ROCE: 86.5%
- FCF yield: 2.2%
- Exp. FCF growth (3 yr): 13.0%
- CAGR since IPO: 20.7%
Company 18: Rightmove ($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%
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%
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%
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