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 | Mkt Cap | Price | 1D | 5D | 1M | YTD | Strength |
|---|---|---|---|---|---|---|---|---|
| AMAT | Applied Materials | $313.1B | -- | +3.11% | -4.37% | +22.09% | +53.50% | 1530 |
| KLAC | KLA Corporation | $230.0B | -- | -2.85% | -4.77% | +27.62% | +45.21% | 1528 |
| LRCX | Lam Research | $322.5B | -- | +3.66% | -3.60% | +28.98% | +50.64% | 1524 |
| EOG | EOG Resources | $75.3B | -- | +1.04% | +5.43% | -6.22% | +33.86% | 1516 |
| ANET | Arista Networks | $217.5B | -- | +2.39% | -1.04% | +48.72% | +31.81% | 1515 |
| TPL | Texas Pacific Land Corporation | $30.6B | -- | -0.95% | -0.62% | -6.95% | +51.41% | 1512 |
| NVDA | Nvidia | $4.85T | -- | -4.63% | -0.20% | +20.83% | +7.01% | 1511 |
| MRK | Merck & Co. | $269.6B | -- | -1.62% | -4.04% | -7.58% | +3.70% | 1508 |
| MNST | Monster Beverage | $75.4B | -- | +0.23% | -0.62% | +8.06% | +0.52% | 1507 |
| DECK | Deckers Brands | $14.5B | -- | +0.85% | -5.11% | +7.61% | -1.42% | 1504 |
| TRV | Travelers Companies (The) | $64.9B | -- | +0.65% | -0.78% | +4.25% | +4.88% | 1502 |
| SBR | Sabine Royalty Trust Common Stock | $1.1B | -- | +0.30% | +1.47% | +0.24% | +11.40% | 1500 |
| EMF | Templeton Emerging Markets Fund Common Stock | $308M | -- | +1.73% | +1.68% | +23.40% | +21.08% | 1500 |
| HTGC | Hercules Capital, Inc. Common Stock | $2.9B | -- | +3.55% | +4.22% | +13.03% | -14.72% | 1500 |
| SPNT | Siriuspoint Ltd | $2.7B | -- | +0.52% | +0.73% | +10.58% | +6.94% | 1500 |
| AOMN | Angel Oak Mortgage REIT, Inc. 9.500% Senior Notes due 2029 | $632M | -- | +0.81% | -1.19% | +0.60% | -2.23% | 1500 |
| VEL | Velocity Financial Inc | $757M | -- | +0.68% | -0.05% | +7.05% | -7.08% | 1500 |
| AOMR | Angel Oak Mortgage Reit Inc | $226M | -- | +0.44% | +1.91% | +11.02% | +5.34% | 1500 |
| RNR | RenaissanceRe Holdings Ltd. Common Stock | $13.2B | -- | +1.06% | -1.64% | +3.85% | +9.18% | 1500 |
| HCXY | Hercules Capital, Inc. 6.25% Notes due 2033 | $3.5B | -- | -0.24% | -0.60% | -0.40% | -2.71% | 1500 |
| UI | Ubiquiti Inc. Common Stock | $61.2B | -- | +4.22% | -3.62% | +37.32% | +82.89% | 1500 |
| ASA | ASA Gold and Precious Metals Limited | $1.2B | -- | +3.31% | -3.16% | +10.87% | +7.34% | 1500 |
| SEZL | Sezzle Inc | $2.7B | -- | +4.00% | -0.51% | +31.07% | +25.39% | 1500 |
| CEE | The Central and Eastern Europe Fund, Inc. (The) Common Stock | $131M | -- | -0.39% | +0.94% | +16.31% | +14.80% | 1500 |
| LUXE | LuxExperience B.V. American Depositary Shares, each representing one Ordinary Share | $873M | -- | +1.93% | -1.10% | +14.65% | +7.78% | 1500 |
| GGN | GAMCO Global Gold, Natural Resources & Income Trust | $825M | -- | +0.57% | -2.40% | +3.33% | +2.33% | 1500 |
| KF | Korea Fund, Inc. (The) New Common Stock | $247M | -- | +4.80% | +8.81% | +39.29% | +63.60% | 1500 |
| VIRT | Virtu Financial, Inc. Class A Common Stock | $10.5B | -- | -2.28% | +3.29% | +15.92% | +49.04% | 1500 |
| THG | Hanover Insurance Group Inc | $6.6B | -- | +5.73% | +3.91% | +8.75% | +2.69% | 1500 |
| NVO | Novo Nordisk A/S Common Stock | $187.6B | -- | +4.79% | +5.39% | +19.64% | -17.02% | 1500 |
| KINS | Kingstone Companies Inc | $241M | -- | -1.65% | -3.92% | +15.52% | -0.95% | 1500 |
| FAST | Fastenal | $51.6B | -- | +1.94% | -1.55% | -1.25% | +11.03% | 1500 |
| RIGL | Rigel Pharmaceuticals Inc | $534M | -- | -1.10% | -6.11% | +12.36% | -32.52% | 1500 |
| AEF | abrdn Emerging Markets ex-China Fund, Inc. Common Stock | $372M | -- | +1.78% | +2.80% | +32.51% | +31.00% | 1500 |
| QLYS | Qualys Inc | $3.1B | -- | -2.98% | +3.65% | -1.13% | -34.59% | 1500 |
| EVER | Everquote Inc Class A | $510M | -- | -8.50% | -5.26% | -7.92% | -46.59% | 1500 |
| ADMA | Adma Biologics Inc | $2.4B | -- | -3.30% | -7.49% | +12.02% | -43.80% | 1500 |
| HRTG | Heritage Insurance Holdings Inc | $901M | -- | -0.37% | +5.81% | +11.65% | +0.21% | 1500 |
| GNT | GAMCO Natural Resources, Gold & Income Trust | $137M | -- | +0.36% | -2.75% | +3.67% | +13.83% | 1500 |
| CARG | Cargurus Inc Class A | $3.6B | -- | -0.57% | -2.64% | +3.34% | -4.93% | 1500 |
| TSM | Taiwan Semiconductor Manufacturing Company Ltd. | $2.05T | -- | +0.57% | -0.02% | +25.14% | +30.33% | 1500 |
| BKTI | Bk Technologies Corp | $365M | -- | +6.46% | +8.62% | +31.51% | +29.19% | 1500 |
| SCCO | Southern Copper Corporation Common Stock | $141.8B | -- | +1.94% | -6.24% | +7.79% | +19.67% | 1500 |
| CRMD | Cormedix Inc | $600M | -- | +1.47% | +3.83% | +15.53% | -34.74% | 1500 |
| APAM | Artisan Partners Asset Management | $2.6B | -- | +2.21% | -1.53% | +5.17% | -8.10% | 1500 |
| BCV | Bancroft Fund, Ltd. | $141M | -- | +0.46% | -0.62% | +13.93% | +9.55% | 1500 |
| GFI | Gold Fields Limited American Depositary Shares | $38.0B | -- | +2.41% | -5.72% | +0.45% | -2.68% | 1500 |
| KGC | Kinross Gold Corporation Common Stock | $36.4B | -- | +1.27% | -6.58% | +5.73% | +7.39% | 1500 |
| BCX | BlackRock Resources Common Shares of Beneficial Interest | $947M | -- | +2.48% | +2.22% | +4.55% | +13.11% | 1500 |
| FHI | Federated Hermes, Inc. Common Stock | $4.4B | -- | +3.18% | +3.40% | +3.51% | +11.68% | 1500 |
| MXF | Mexico Fund, Inc. (The) Common Stock | $305M | -- | +1.39% | -1.26% | +3.98% | +4.97% | 1500 |
| BKE | Buckle Inc | $2.9B | -- | +0.54% | -1.56% | +12.68% | +4.10% | 1500 |
| AU | AngloGold Ashanti PLC Ordinary Shares | $47.3B | -- | +3.59% | -4.65% | +3.49% | +9.90% | 1500 |
| NBXG | Neuberger Next Generation Connectivity Fund Inc. Common Stock | $1.1B | -- | +0.55% | +1.25% | +18.06% | +0.97% | 1500 |
| ECF | Ellsworth Growth and Income Fund Ltd. | $172M | -- | +1.45% | +0.48% | +16.51% | +8.00% | 1500 |
| NSSC | Napco Security Technologies Inc | $1.7B | -- | +3.47% | +3.61% | +23.35% | +12.11% | 1500 |
| STK | Columbia Seligman Premium Technology Growth Fund Inc | $844M | -- | +2.99% | +2.82% | +36.03% | +32.89% | 1500 |
| CALM | Cal Maine Foods Inc | $3.7B | -- | +2.92% | +1.28% | -1.78% | -2.90% | 1500 |
| GLU | Gabelli Global Utility Common Shares of Beneficial Ownership | $119M | -- | +2.42% | -0.10% | +4.74% | +3.27% | 1500 |
| RELX | RELX PLC PLC American Depositary Shares (Each representing One Ordinary Share) | $65.2B | -- | +2.21% | +0.88% | +11.73% | -9.48% | 1500 |
| OFG | Ofg Bancorp | $2.0B | -- | +2.36% | -0.17% | +15.30% | +12.15% | 1500 |
| NVEC | Nve Corp | $400M | -- | +6.56% | +4.57% | +27.35% | +39.54% | 1500 |
| CAF | Morgan Stanley China A Share Fund Inc. Common Stock | $321M | -- | +1.56% | +3.12% | +11.73% | +8.64% | 1500 |
| IRMD | Iradimed Corp | $1.1B | -- | -0.32% | -5.24% | -12.12% | -14.23% | 1500 |
| WDFC | Wd-40 | $2.8B | -- | -1.62% | -5.86% | +3.13% | +6.63% | 1500 |
| DOCS | Doximity, Inc. Class A Common Stock | $4.6B | -- | +0.99% | +3.91% | +2.99% | -44.81% | 1500 |
| PBYI | Puma Biotechnology Inc | $382M | -- | +0.40% | +1.35% | +22.51% | +26.22% | 1500 |
| STNE | Stoneco Ltd Class A | $2.9B | -- | +1.20% | -10.15% | -19.21% | -25.76% | 1500 |
| CPRX | Catalyst Pharmaceuticals Inc | $3.4B | -- | -0.46% | +1.74% | +18.29% | +20.52% | 1500 |
| NRP | Natural Resource Partners LP Limited Partnership | $1.6B | -- | +0.99% | +3.50% | -3.58% | +13.18% | 1500 |
| SN | SharkNinja, Inc. Ordinary Shares | $16.4B | -- | +2.12% | +0.46% | +18.35% | +3.24% | 1500 |
| EOD | Allspring Global Dividend Opportunity Fund Common Shares of Beneficial Interest | $274M | -- | +1.92% | +0.16% | +14.77% | +9.26% | 1500 |
| FTNT | Fortinet | $62.4B | -- | -2.09% | +1.46% | +6.65% | +6.17% | 1499 |
| AAPL | Apple Inc. | $3.98T | -- | +0.42% | -0.52% | +10.02% | -0.19% | 1498 |
| META | Meta Platforms | $1.55T | -- | -8.55% | -7.33% | +14.08% | -7.30% | 1498 |
| CL | Colgate-Palmolive | $68.5B | -- | +1.03% | +0.95% | -0.43% | +8.02% | 1497 |
| HIG | Hartford (The) | $37.5B | -- | +0.12% | -0.81% | +1.76% | -0.72% | 1496 |
| MCO | Moody's Corporation | $80.7B | -- | +0.38% | +1.93% | +6.90% | -9.59% | 1496 |
| WSM | Williams-Sonoma | $21.6B | -- | -0.09% | -5.33% | +2.36% | +1.36% | 1495 |
| ITW | Illinois Tool Works | $74.4B | -- | -2.88% | -5.08% | +0.71% | +4.75% | 1494 |
| TROW | T. Rowe Price | $22.4B | -- | +2.40% | +3.40% | +15.56% | +0.49% | 1494 |
| ROL | Rollins, Inc. | $26.8B | -- | +0.72% | -0.92% | +5.07% | -7.15% | 1493 |
| QCOM | Qualcomm | $191.8B | -- | +15.12% | +23.33% | +41.32% | +4.99% | 1492 |
| LLY | Lilly (Eli) | $882.8B | -- | +9.77% | +3.81% | +5.38% | -13.06% | 1491 |
| GILD | Gilead Sciences | $162.4B | -- | +1.55% | -0.53% | -4.03% | +6.60% | 1491 |
| LULU | Lululemon Athletica | $16.2B | -- | -0.33% | -2.95% | -5.57% | -33.74% | 1488 |
| APP | AppLovin Corporation | $150.1B | -- | -0.60% | -3.13% | +18.46% | -34.59% | 1486 |
| ZTS | Zoetis | $48.5B | -- | +1.00% | -0.90% | -1.17% | -8.62% | 1486 |
| V | Visa Inc. | $632.8B | -- | -1.50% | +7.40% | +10.12% | -5.95% | 1485 |
| CTAS | Cintas | $69.9B | -- | +0.44% | -0.76% | +3.59% | -7.10% | 1484 |
| NFLX | Netflix | $394.2B | -- | +1.62% | +1.12% | +0.69% | -0.16% | 1484 |
| INCY | Incyte | $19.0B | -- | -3.86% | +0.34% | +5.47% | -3.54% | 1483 |
| CLX | Clorox | $11.7B | -- | +1.76% | -2.27% | -5.84% | -4.35% | 1482 |
| MSFT | Microsoft | $3.03T | -- | -3.93% | -2.20% | +13.60% | -15.68% | 1481 |
| ADBE | Adobe Inc. | $99.5B | -- | +1.04% | +2.64% | +2.06% | -29.68% | 1480 |
| MA | Mastercard | $445.2B | -- | -4.39% | +0.64% | +1.66% | -12.03% | 1478 |
| IDXX | Idexx Laboratories | $44.7B | -- | +1.29% | +0.70% | +0.67% | -17.11% | 1476 |
| RMD | ResMed | $31.1B | -- | +0.89% | -2.00% | -2.83% | -11.23% | 1474 |
| GDDY | GoDaddy | $11.6B | -- | +0.79% | +1.47% | +5.75% | -30.34% | 1470 |
| ADP | Automatic Data Processing | $85.3B | -- | -1.45% | +7.61% | +3.15% | -17.61% | 1468 |
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.