High Quality Stocks

Last Updated: 7/28/2022

A quality composite looks for solid businesses that produce consistent results, are very profitable, and generate high returns on their capital employed. Our quality composite combines return on equity, return on total capital, gross margin, net margin, and sales and earnings consistency.

Stocks With Highest Quality Factor Exposure

Ticker Price Market Cap
($mil)
ADBE $392.78 $183,821
AMGN $251.72 $134,469
ADP $234.04 $97,770
CSCO $44.64 $184,853
CL $78.76 $65,996
LLY $328.94 $312,546
FICO $437.67 $11,350
IDXX $385.96 $32,423
INTU $433.16 $122,184
MSFT $268.74 $2,005,875
ORCL $75.87 $202,188
UNP $219.89 $137,317
CHKP $125.64 $16,216
FDS $408.81 $15,526
EXPO $94.87 $4,916
KLAC $361.14 $53,895
NVO $116.93 $200,429
SEIC $53.90 $7,303
WAT $355.33 $21,403
MTD $1,273.56 $28,885
HEP $17.64 $2,230
VRSK $184.53 $29,138
ORLY $689.40 $45,311
ZTS $177.47 $83,522
SHLX $16.05 $6,312
SPGI $360.92 $122,677
AZPN $196.01 $12,939
VNT $24.93 $4,014
ASML $546.18 $217,435
GIB $85.21 $18,071
MNST $97.39 $51,585
PAYC $320.20 $19,293
EVTC $38.81 $2,777
HCA $204.66 $60,474
META $169.58 $458,938
IRWD $12.36 $1,901
FTNT $57.93 $46,497
BF.B $72.42 $34,415
NVS $86.75 $207,036
EW $105.61 $65,663
NVEC $53.68 $259
MANH $137.44 $8,620
JKHY $202.76 $14,773
RMD $240.16 $35,132
FAST $48.28 $27,745
CPRT $122.83 $29,193
ROL $35.36 $17,413
TXN $171.54 $156,959
JNJ $173.20 $455,759
INTC $40.18 $164,296
CDNS $176.62 $48,371
CNI $122.46 $84,593
CLX $142.28 $17,512
KO $63.01 $272,581
VZ $44.91 $188,622
ITW $197.82 $61,610
MCO $293.62 $54,173
HD $298.91 $307,206
CHD $94.46 $22,932
WDFC $175.91 $2,397
CTXS $101.62 $12,894
FIZZ $51.45 $4,802
ODFL $273.48 $31,000
FFIV $164.70 $9,809
TSM $87.63 $434,365
FHI $34.51 $3,164
MMM $138.86 $79,095
EVR $96.15 $4,159
NTAP $70.57 $15,609
LOPE $96.95 $3,133
QLYS $118.93 $4,619
AMT $258.28 $120,022
ALLE $104.19 $9,148
ATEN $14.79 $1,121
VEEV $217.66 $33,704
LAMR $97.75 $9,920
UI $285.90 $17,274
BWXT $54.54 $4,974
ICE $97.51 $54,437
EHC $49.43 $4,933
ACN $297.53 $188,202
GRMN $93.56 $18,069
MRK $91.23 $230,703
BAH $94.21 $12,470
MASI $142.60 $7,915
INFY $18.71 $77,279
TREX $60.73 $6,875
GWW $487.61 $24,918
USNA $69.42 $1,332
REGN $587.91 $64,580
INCY $80.68 $17,871
CSX $31.83 $68,156
WSM $138.08 $9,495
SSD $101.53 $4,382
SNA $219.27 $11,680
PEP $171.59 $236,809
GIS $73.82 $44,082
HSY $218.23 $44,869
A $127.71 $38,148
KMB $132.05 $44,583
AAPL $156.79 $2,537,675
ANSS $265.12 $23,063
EMR $86.36 $51,298
ROK $240.46 $27,956
RIO $59.42 $97,282
DEO $185.58 $103,219
MMP $50.86 $10,760
ENTG $105.72 $15,729
NTES $96.11 $64,488
AKAM $93.65 $15,013
LULU $295.57 $37,727
LMAT $48.09 $1,056
SAIA $211.05 $5,573
DMLP $30.38 $1,141
SCCO $48.32 $37,356
ECOM $15.07 $459
CABO $1,439.50 $8,627
WES $27.02 $10,898
INMD $29.28 $2,433
IAA $36.41 $4,879
STX $78.68 $16,904
GSK $43.54 $85,876
VVV $31.42 $5,599
PYPL $86.42 $100,078
ABBV $151.15 $267,099
HALO $51.70 $7,132
CHE $524.08 $7,844
BCE $49.46 $44,777
ISRG $225.34 $80,471
NVDA $177.90 $444,750
MED $169.14 $1,947
BRC $47.38 $2,380
UL $48.44 $122,443
VRTX $286.99 $73,399
WST $320.52 $23,743
SNPS $353.54 $54,081
TTC $84.13 $8,798
NDSN $221.78 $12,755
NSC $243.24 $57,972
ATRI $661.17 $1,187
PG $145.64 $349,434
AMAT $103.46 $90,005
ABT $109.99 $192,586
EL $263.42 $94,132
LOW $189.92 $121,383
K $72.21 $24,398
BBY $74.49 $16,773
NKE $107.86 $169,184
TMO $581.93 $227,804
BKE $29.74 $1,490
LMT $398.54 $105,674
LRCX $467.66 $64,871
HON $183.66 $125,023
IEX $199.72 $15,180
DCI $52.65 $6,469
DVA $86.92 $8,223
TSCO $186.93 $20,914
SHW $231.97 $60,343
SAP $91.31 $110,397
WERN $41.29 $2,686
SLP $61.64 $1,247
DSGX $67.12 $5,659
DOX $86.81 $10,664
UPS $183.90 $160,686
MORN $248.25 $10,608
IT $260.85 $21,009
ZYXI $7.57 $291
ATVI $79.79 $62,386
ALSN $39.97 $3,880
KEYS $155.60 $28,000
CCI $173.54 $75,143
IRM $47.05 $13,671
MDT $93.22 $123,862
DAC $68.22 $1,413
EXP $125.99 $4,800
MPWR $451.01 $21,036
G $46.50 $8,609
EXLS $148.54 $4,944
SBH $13.24 $1,417
CTSH $70.30 $36,639
JHX $23.94 $10,353
BIIB $212.92 $31,183
AAP $185.91 $11,274
CGNX $49.10 $8,531
MSM $79.73 $4,464
NSSC $25.49 $936
APH $74.43 $44,445
AOS $60.54 $9,445
ABEV $2.83 $44,092
QSR $52.05 $23,539
PRDO $13.50 $929
LPRO $10.22 $1,290
ADSK $203.41 $44,195
CRVL $160.93 $2,824
SCI $73.73 $11,704
SYK $211.80 $80,093
TEF $4.55 $25,742
OMC $69.03 $14,140
SMTC $59.59 $3,783
NOC $445.81 $69,299
NUS $43.36 $2,177
VIVO $32.26 $1,411
DOV $130.10 $18,676
DGX $134.30 $15,660
PRGS $46.06 $2,002
AYI $171.44 $5,608
NFLX $226.75 $100,837
BRKR $65.95 $9,843
NMRK $11.50 $2,123
AVGO $527.79 $213,131
ATHM $37.20 $4,731
ANET $109.10 $33,632
SSTK $57.57 $2,071
EPAM $325.63 $18,610
FBHS $66.96 $8,759
THC $63.46 $6,836
GMED $59.83 $6,088
PTC $117.34 $13,726
VALE $13.48 $65,880
CHT $40.35 $31,451
AMCX $31.85 $1,367
DG $244.45 $55,489
TNET $81.55 $5,066
DFIN $32.72 $1,040
PHI $30.13 $6,429
CIEN $49.65 $7,433
RDY $54.40 $8,910
TPX $25.19 $4,422
RBA $69.72 $7,713
TGT $154.60 $71,687
QCOM $153.42 $171,830
KFRC $63.59 $1,360
CHH $119.11 $6,643
CSGS $65.27 $2,117
CRUS $81.82 $4,573
LSCC $59.14 $8,138
TIMB $11.78 $5,610
Performance Disclaimer: Returns presented on Validea.com are model returns and do not represent actual trading. As a result, they do not incorporate any commissions or other trading costs or fees. Model portfolios with inception dates on or after 12/30/2005 include a combination of back tested and live model returns. The back-tested performance results shown are hypothetical and are not the result of real-time management of actual accounts. The back-testing of performance differs from actual account performance because the investment strategy may be adjusted at any time, for any reason and can continue to be changed until desired or better performance results are achieved. Back-tested returns are presented to provide general information regarding how the underlying strategy behind the portfolio performed in our historical testing. A back-tested strategy has the benefit of hindsight and the results do not reflect the impact that material economic or market factors may have had on advisor's decision-making if actual client assets were being managed using this approach. The model portfolios offered on Validea are concentrated and as a result they will exhibit high levels of volatility and their performance can be substantially impacted by the performance of individual positions.

Optimal portfolios presented on Validea.com represent the rebalancing period that has led to the best historical performance for each of our equity models. Each optimal portfolio was determined after the fact with performance information that was not available at portfolio inception. As a result, an investor could not have invested in the optimal portfolio since its inception. Optimal portfolios are presented to allow investors to quickly determine the portfolio size and rebalancing period that has performed best for each of our models in our historical testing.

Both the model portfolio and benchmark returns presented for all equity portfolios on Validea.com are not inclusive of dividends. Returns for our ETF portfolios and trend following system, and the benchmarks they are compared to, are inclusive of dividends. The S&P 500 is presented as a benchmark because it is the most widely followed benchmark of the overall US market and is most often used by investors for return comparison purposes. As with any investment strategy, there is potential for profit as well as the possibility of loss and investors may incur a loss despite a past history of gains. Past performance does not guarantee future results. Results will vary with economic and market conditions.