Quality Stocks: High ROIC and Strong Margins
Large companies earning high returns on the capital they invest, with gross and net margins that point to pricing power.
Stocks matching the screen
Data as of the October 29, 2026 close| MANHManhattan Associates, Inc. | Manhattan Associates, Inc. | $14.00B | 54.6% | 25.0% | 18.7% | 96.4% | 24.5% | 246% | 0.34 | 0.98 |
| UMBFUMB Financial Corporation | UMB Financial Corporation | $10.30B | 58.5% | 51.1% | 33.5% | 12.3% | 1.30% | 216% | 0.44 | 0.25 |
| ALABAstera Labs, Inc. | Astera Labs, Inc. | $50.40B | 75.1% | 22.7% | 30.7% | 25.8% | 10.7% | 167% | — | 10.05 |
| NVDANVIDIA Corporation | NVIDIA Corporation | $5.16T | 74.7% | 66.2% | 63.7% | 117% | 53.6% | 158% | 0.17 | 4.59 |
| IFSIntercorp Financial Services Inc. | Intercorp Financial Services Inc. | $5.45B | 64.1% | 44.7% | 35.7% | 17.2% | 2.10% | 153% | 1.09 | 0.74 |
| RDDTReddit, Inc. | Reddit, Inc. | $24.90B | 91.4% | 28.8% | 31.4% | 30.7% | 15.7% | 134% | 0.01 | 10.49 |
| IDCCInterDigital, Inc | InterDigital, Inc | $8.63B | 78.7% | 53.5% | 38.3% | 26.4% | 10.4% | 120% | 0.33 | 1.74 |
| DUOLDuolingo, Inc. | Duolingo, Inc. | $6.35B | 72.3% | 11.7% | 35.9% | 34.4% | 5.60% | 120% | 0.06 | 2.72 |
| ZMZoom Video Communications, Inc. | Zoom Video Communications, Inc. | $28.50B | 77.3% | 24.6% | 65.2% | 32.1% | 6.10% | 117% | 0.01 | 3.83 |
| WDCWestern Digital Corporation | Western Digital Corporation | $148.00B | 48.9% | 43.6% | 73.0% | 131% | 20.8% | 116% | 0.12 | 1.33 |
| LOGILogitech International S.A. | Logitech International S.A. | $14.20B | 45.1% | 21.2% | 16.3% | 35.3% | 14.2% | 112% | 0.04 | 2.31 |
| UIUbiquiti Inc. | Ubiquiti Inc. | $36.70B | 46.2% | 36.3% | 29.3% | 91.1% | 40.4% | 112% | 0.06 | 2.93 |
| QLYSQualys, Inc. | Qualys, Inc. | $7.97B | 83.5% | 34.0% | 29.4% | 38.6% | 14.6% | 112% | 0.09 | 1.38 |
| DECKDeckers Outdoor Corporation | Deckers Outdoor Corporation | $11.30B | 58.9% | 23.2% | 19.0% | 44.3% | 21.3% | 110% | 0.23 | 2.72 |
| SNDKSandisk Corporation | Sandisk Corporation | $192.00B | 71.5% | 78.5% | 56.5% | 91.6% | 43.9% | 109% | 0.02 | 2.29 |
| MUMicron Technology, Inc. | Micron Technology, Inc. | $1.06T | 80.7% | 80.7% | 63.8% | 88.3% | 44.6% | 107% | 0.04 | 3.31 |
| CRDOCredo Technology Group Holding Ltd | Credo Technology Group Holding Ltd | $31.10B | 67.1% | 25.2% | 33.8% | 30.7% | 16.1% | 104% | 0.01 | 7.40 |
| APPAppLovin Corporation | AppLovin Corporation | $85.60B | 88.5% | 77.7% | 64.6% | 204% | 46.5% | 102% | 1.11 | 4.30 |
| DOCSDoximity, Inc. | Doximity, Inc. | $5.99B | 88.1% | 21.5% | 25.5% | 17.2% | 11.0% | 100% | 0.01 | 6.08 |
| MAMastercard Incorporated | Mastercard Incorporated | $557.00B | 100% | 61.1% | 46.3% | 241% | 24.1% | 98.4% | 4.39 | 1.06 |
| AAPLApple Inc. | Apple Inc. | $5.09T | 48.7% | 32.6% | 27.6% | 149% | 27.1% | 92.5% | 0.78 | 1.00 |
| ASMLASML Holding N.V. | ASML Holding N.V. | $646.00B | 54.3% | 44.4% | 34.1% | 65.6% | 18.3% | 89.4% | 0.09 | 1.49 |
| INCYIncyte Corporation | Incyte Corporation | $23.70B | 92.6% | 41.9% | 27.7% | 30.7% | 16.8% | 86.4% | 0.01 | 4.66 |
| STXSeagate Technology Holdings plc | Seagate Technology Holdings plc | $159.00B | 50.4% | 43.1% | 26.1% | 37.2% | 29.4% | 86.0% | 0.68 | 1.82 |
| TALTAL Education Group | TAL Education Group | $5.62B | 56.0% | 18.1% | 28.4% | 23.7% | 4.00% | 75.8% | 0.10 | 1.69 |
| LRCXLam Research Corporation | Lam Research Corporation | $318.00B | 50.5% | 37.4% | 31.3% | 65.1% | 22.8% | 75.5% | 0.33 | 2.63 |
| SGHCSuper Group (SGHC) Limited | Super Group (SGHC) Limited | $5.45B | 51.4% | 25.2% | 15.1% | 49.5% | 26.5% | 72.9% | 0.13 | 1.83 |
| KLACKLA Corporation | KLA Corporation | $218.00B | 61.3% | 42.5% | 35.6% | 87.5% | 20.8% | 70.3% | 0.97 | 2.88 |
| DBXDropbox, Inc. | Dropbox, Inc. | $7.89B | 79.7% | 26.1% | 17.5% | — | 15.0% | 68.6% | — | 1.07 |
| PEGAPegasystems Inc. | Pegasystems Inc. | $5.61B | 75.6% | 4.60% | 18.7% | 54.7% | 9.10% | 67.7% | 0.10 | 1.06 |
| FICOFair Isaac Corporation | Fair Isaac Corporation | $15.30B | 85.1% | 53.8% | 34.1% | — | 40.0% | 65.4% | — | 1.18 |
| ADPAutomatic Data Processing, Inc. | Automatic Data Processing, Inc. | $112.00B | 48.2% | 23.5% | 20.1% | 72.2% | 6.30% | 62.4% | 0.87 | 1.05 |
| ADBEAdobe Inc. | Adobe Inc. | $96.60B | 89.1% | 34.8% | 28.1% | 61.9% | 20.1% | 61.3% | 0.57 | 0.77 |
| HRBH&R Block, Inc. | H&R Block, Inc. | $6.09B | 60.4% | 32.9% | 18.6% | 71.4% | 17.4% | 59.8% | 17.89 | 1.13 |
| CHKPCheck Point Software Technologies Ltd. | Check Point Software Technologies Ltd. | $15.70B | 86.1% | 27.5% | 37.9% | 37.6% | 7.60% | 57.5% | 0.72 | 1.67 |
| EXELExelixis, Inc. | Exelixis, Inc. | $16.40B | 96.5% | 39.5% | 35.3% | 44.4% | 24.0% | 57.1% | 0.09 | 3.46 |
| TSMTaiwan Semiconductor Manufacturing Company Limited | Taiwan Semiconductor Manufacturing Company Limited | $2.24T | 65.8% | 58.7% | 51.1% | 41.9% | 20.6% | 55.2% | 0.14 | 2.58 |
| PRIPrimerica, Inc. | Primerica, Inc. | $8.73B | 72.1% | 31.5% | 22.8% | 33.0% | 4.70% | 53.8% | 0.25 | 6.84 |
| IDXXIDEXX Laboratories, Inc. | IDEXX Laboratories, Inc. | $45.40B | 62.4% | 35.0% | 25.0% | 74.2% | 27.1% | 53.5% | 0.68 | 1.17 |
| ARGXargenx SE | argenx SE | $56.50B | 89.9% | 32.0% | 32.3% | 23.6% | 11.6% | 50.1% | 0.01 | 5.12 |
| KRYSKrystal Biotech, Inc. | Krystal Biotech, Inc. | $9.61B | 93.3% | 49.0% | 54.8% | 20.1% | 9.40% | 50.0% | 0.01 | 8.32 |
| YUMYum! Brands, Inc. | Yum! Brands, Inc. | $42.20B | 45.8% | 32.8% | 25.4% | — | 22.7% | 49.6% | — | 0.59 |
| VVisa Inc. | Visa Inc. | $771.00B | 80.2% | 66.1% | 50.8% | 61.2% | 19.1% | 47.8% | 0.68 | 0.99 |
| HLNEHamilton Lane Incorporated | Hamilton Lane Incorporated | $5.74B | 69.9% | 45.9% | 32.1% | 32.4% | 10.8% | 46.6% | 0.39 | 4.05 |
| TPLTexas Pacific Land Corporation | Texas Pacific Land Corporation | $22.60B | 68.5% | 78.2% | 60.3% | 36.6% | 25.8% | 45.7% | 0.01 | 4.55 |
| LLYEli Lilly and Company | Eli Lilly and Company | $1.22T | 83.4% | 54.2% | 33.5% | 102% | 20.4% | 44.9% | 1.62 | 1.35 |
| SKHYSK Hynix Inc. American Depositary Shares | SK Hynix Inc. American Depositary Shares | $1.14T | 76.3% | 76.3% | 85.6% | 92.7% | 33.7% | 44.8% | 0.08 | 2.59 |
| AUAngloGold Ashanti Limited | AngloGold Ashanti Limited | $43.00B | 53.5% | 51.2% | 32.2% | 44.7% | 24.9% | 44.6% | 0.20 | 2.71 |
| GOOGLAlphabet Inc. | Alphabet Inc. | $3.47T | 60.9% | 34.0% | 54.8% | 48.7% | 13.0% | 44.1% | 0.18 | 2.72 |
| GOOGAlphabet Inc. | Alphabet Inc. | $3.45T | 60.9% | 34.0% | 54.8% | 48.7% | 13.0% | 44.1% | 0.18 | 2.72 |
End-of-day prices and company fundamentals from EODHD. Fundamentals are refreshed after each earnings report. Ratios that are negative or not meaningful are shown as —. For information only, not investment advice.
Screening criteria
- Return on invested capital of 15% or more
- Gross margin of 40% or more
- Net margin of 15% or more
- Market cap of $5 billion or more
Common stocks and ADRs on the NYSE, Nasdaq and NYSE American; ETFs, OTC stocks and halted stocks excluded. Change or add filters above to refine the list; the full stock screener has more than 60 filters.
About this screen
Quality investing looks for businesses with durable competitive advantages, sometimes called moats. High returns on invested capital show that a company turns its money into profit efficiently, while strong gross and net margins show it can charge more than its costs and keep a large share of sales as profit. This screen requires all three, plus a $5 billion market cap, to focus on established companies whose advantages have lasted.
Results are sorted by ROIC, highest first. Unlike ROE, ROIC counts both debt and equity as invested capital, so it cannot be inflated by borrowing. Quality companies often trade at premium valuations, so compare P/E and free cash flow yield in the Valuation tab. Margins differ widely by industry, and the gross margin filter excludes most retailers and manufacturers.
Quality Stocks: High ROIC and Strong Margins FAQ
Which companies have the highest return on invested capital?
As of the October 29, 2026 close, 206 stocks with a market cap above $5 billion had ROIC of 15% or more, gross margin of 40% or more and net margin of 15% or more. The highest ROIC figures were at Manhattan Associates, Inc. (MANH), UMB Financial Corporation (UMBF) and Astera Labs, Inc. (ALAB).
What is the difference between ROIC and ROE?
ROE divides profit by shareholder equity only, while ROIC divides operating profit after tax by all capital invested, including debt. A company can raise ROE by borrowing, but not ROIC, which makes ROIC a cleaner measure of business quality.
What makes a stock a quality stock?
There is no single definition. Common traits are high and stable returns on capital, strong margins, low debt and consistent earnings. Quality screens measure the results of a competitive advantage rather than the advantage itself.
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