Best Quality Stocks
Quality stocks are companies with structural competitive advantages that show up in the numbers: gross margins above 40%, net margins above 10%, and return on invested capital that consistently exceeds the cost of capital. These are businesses that don't just earn profits — they compound them.
100 stocks
Symbol | Name | Price | 1D | YTD | ||||
|---|---|---|---|---|---|---|---|---|
| PBT | Permian Basin Royalty Trust Common Stock | $1.6B | -- | -0.62% | +1.27% | -0.86% | +97.47% | -- |
| SBR | Sabine Royalty Trust Common Stock | $1.0B | -- | -0.95% | -0.58% | -4.09% | +4.70% | -- |
| JCAP | Jefferson Capital Inc | $1.2B | -- | -0.41% | -1.52% | -7.73% | -12.89% | -- |
| BX | Blackstone Inc. | $143.1B | -- | +1.03% | -2.80% | -16.83% | -23.17% | -- |
| VEL | Velocity Financial Inc | $603M | -- | -0.32% | -5.42% | -14.77% | -26.06% | -- |
| HG | Hamilton Insurance Group Ltd Class | $3.3B | -- | -0.42% | -0.72% | -5.83% | +19.32% | -- |
| OPFI | Oppfi Inc Class A | $536M | -- | +0.64% | -0.95% | -11.17% | -39.96% | -- |
| AXS | Axis Capital Holdings Limited Common Stock | $6.9B | -- | -0.29% | -1.61% | -5.09% | -11.80% | -- |
| STK | Columbia Seligman Premium Technology Growth Fund Inc | $939M | -- | -0.73% | -2.14% | +1.22% | +44.52% | -- |
| KF | Korea Fund, Inc. (The) New Common Stock | $286M | -- | +2.16% | -0.64% | +4.48% | +84.77% | -- |
| SNDK | Sandisk Corporation | $263.3B | -- | +1.38% | -6.20% | +19.72% | +648.93% | -- |
| APP | AppLovin Corporation | $104.4B | -- | -0.55% | -1.63% | -2.21% | -53.88% | -- |
| UI | Ubiquiti Inc. Common Stock | $33.9B | -- | -0.43% | -3.33% | -6.45% | +1.32% | -- |
| NVDA | Nvidia | $5.45T | -- | +0.22% | -1.30% | +3.46% | +20.68% | -- |
| ABUS | Arbutus Biopharma Corp | $958M | -- | -0.61% | -3.19% | -4.34% | +0.83% | -- |
| ASA | ASA Gold and Precious Metals Limited | $1.1B | -- | +1.03% | -2.54% | -10.75% | -5.01% | -- |
| DBRG | Digitalbridge Group Inc Class A | $3.0B | -- | -- | -0.06% | +0.31% | +4.17% | -- |
| MGTX | Meiragtx Holdings Plc | $1.0B | -- | -1.27% | -11.01% | -21.06% | +37.23% | -- |
| AAPL | Apple Inc. | $5.01T | -- | +1.53% | -0.00% | +6.68% | +25.46% | -- |
| STX | Seagate Technology | $205.6B | -- | +1.20% | +0.40% | +10.49% | +232.92% | -- |
| TWN | Taiwan Fund, Inc. (The) Common Stock | $561M | -- | +1.87% | +1.29% | +0.81% | +93.26% | -- |
| SEZL | Sezzle Inc | $3.7B | -- | +1.46% | +0.84% | -10.26% | +75.46% | -- |
| MA | Mastercard | $497.8B | -- | +0.28% | +2.14% | -4.64% | -0.57% | -- |
| ANAB | Anaptysbio Inc | $1.5B | -- | -1.35% | -4.76% | -9.38% | +57.80% | -- |
| LQDA | Liquidia Corp | $6.1B | -- | -3.55% | -0.25% | +1.09% | +98.41% | -- |
| CASS | Cass Information Systems Inc | $697M | -- | -0.46% | -0.82% | -4.45% | +30.37% | -- |
| MU | Micron Technology | $1.22T | -- | +0.16% | -1.62% | +16.02% | +279.20% | -- |
| AEF | abrdn Emerging Markets ex-China Fund, Inc. Common Stock | $381M | -- | +1.56% | -0.51% | +2.63% | +39.14% | -- |
| DAVE | Dave Inc Class A | $4.4B | -- | -1.98% | -8.32% | -14.18% | +46.73% | -- |
| BSTZ | BlackRock Science and Technology Term Trust Common Shares of Beneficial Interest | $2.1B | -- | +0.71% | -0.40% | -4.89% | +31.62% | -- |
About This List
Quality investing targets companies with sustainable competitive advantages, measured through the consistency and level of their financial returns. Unlike growth investing (which focuses on revenue expansion) or value investing (which focuses on cheap multiples), quality investing focuses on the durability of the business model — whether a company can maintain high margins and returns over a full economic cycle.
The primary metrics here are gross margin (pricing power), net margin (operational efficiency), and return on invested capital (ROIC). Gross margins above 40% indicate that the company captures significant value from each dollar of revenue — a hallmark of software, healthcare, and premium consumer brands. Net margins above 10% confirm this pricing power flows through to the bottom line. High ROIC confirms that the business compounds capital efficiently.
Companies with these characteristics are often called "wide moat" businesses — their competitive advantages are durable enough that competitors can't easily replicate them. Moats take several forms: network effects (harder to leave as more users join), switching costs (high cost to change providers), cost advantages (structural cost edge from scale or proprietary processes), and intangible assets (patents, brands, regulatory licenses).
The risk with quality stocks is valuation. Wide-moat businesses are well-known and often trade at premium multiples that already price in their quality. The best entry points come during broad market sell-offs, sector rotations, or temporary earnings misses that the market has overreacted to.
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Frequently Asked Questions
- What defines a "quality stock"?
- A quality stock has high gross margins (>40%), strong net margins (>10%), and high return on invested capital — indicators of a durable competitive advantage that sustains profitability across market cycles.
- How is ROIC calculated?
- Return on invested capital = net operating profit after tax ÷ (total equity + total debt). It measures how efficiently management deploys capital. Consistently above 15% is exceptional.
- Are quality stocks defensive or growth-oriented?
- Both. Some quality stocks (utilities, consumer staples) are defensive. Others (software, biotech) are high-growth. The shared trait is durable pricing power and high returns on capital — not growth rate or sector.
- How often is this list updated?
- Margin and return data is updated daily via our screener cron. The list refreshes every hour.
Data is provided for informational purposes only and does not constitute investment advice. Fundamentals and trend analysis update daily. Past performance is not indicative of future results.