High Quality Stocks

Last Updated: 12/29/2022

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 $328.33 $152,641
AMGN $261.42 $139,488
ADP $237.85 $98,667
CSCO $47.07 $193,368
CL $78.82 $65,832
LLY $365.22 $347,024
IDXX $399.93 $33,121
MSFT $234.53 $1,748,298
ORCL $80.33 $216,590
TXN $161.19 $146,292
UNP $206.87 $127,184
CHKP $124.91 $16,122
FDS $394.52 $15,031
EXPO $98.53 $4,989
KLAC $367.76 $52,118
NVO $133.55 $231,966
SEIC $57.69 $7,778
WAT $340.71 $20,241
MTD $1,430.18 $31,885
V $204.99 $422,625
VRSK $174.23 $27,247
ORLY $844.62 $52,853
EVTC $31.12 $2,029
ZTS $143.83 $67,035
SPGI $329.60 $107,384
MNST $101.32 $52,863
GIB $84.89 $17,983
ASML $531.64 $215,200
VNT $18.49 $2,921
PAYC $302.63 $17,512
FTNT $47.86 $37,390
HCA $236.40 $66,834
META $115.62 $306,572
NTAP $58.18 $12,542
HEP $17.84 $2,256
TSM $73.06 $380,994
MANH $118.04 $7,365
BF.B $65.57 $31,381
NVS $90.84 $218,633
EW $73.11 $45,201
MMM $118.29 $65,384
RMD $205.77 $30,142
ODFL $282.25 $31,183
JKHY $176.64 $12,886
FAST $46.84 $26,828
ROL $36.54 $17,995
JNJ $176.66 $461,875
CDNS $158.34 $43,435
CNI $119.29 $80,517
VZ $38.81 $162,995
ITW $220.43 $67,713
KMB $136.52 $46,074
KO $63.57 $274,909
MCO $273.02 $50,017
HD $315.73 $321,788
SSD $88.32 $3,762
WDFC $160.18 $2,175
CHD $80.92 $19,734
CSX $30.84 $64,838
CPRT $59.96 $28,559
NTES $71.67 $47,073
FFIV $138.84 $8,382
INFY $17.96 $76,486
FHI $35.44 $3,154
EVR $108.92 $4,230
AMT $210.10 $97,824
QLYS $109.40 $4,156
GRMN $90.25 $17,298
MRK $111.08 $281,632
ALLE $104.32 $9,164
LAMR $93.50 $9,507
AVGO $544.89 $227,702
FTDR $20.03 $1,632
BWXT $57.56 $5,251
VEEV $160.91 $25,052
IRWD $12.15 $1,864
BAH $103.77 $13,721
LOPE $105.34 $3,281
LULU $308.96 $39,424
CTAS $451.04 $45,876
EMR $95.26 $56,337
FIZZ $47.46 $4,431
NDSN $235.12 $13,439
ROK $255.19 $29,282
USNA $53.87 $1,035
GWW $557.06 $28,148
WSM $114.93 $7,651
ANSS $234.39 $20,418
BHP $61.74 $158,612
SNA $226.46 $12,037
PEP $181.75 $250,399
GIS $84.76 $49,975
HSY $232.87 $47,758
AAPL $126.04 $2,005,059
AMAT $94.22 $79,539
A $148.09 $43,845
CLX $142.36 $17,565
INTC $25.54 $105,404
INTU $376.50 $105,768
ATRI $561.97 $996
RIO $70.63 $116,824
VRTX $285.76 $73,352
TTC $113.15 $11,769
REGN $713.03 $77,650
INCY $79.44 $17,673
DEO $178.19 $100,103
TREX $40.69 $4,465
MMP $49.37 $10,118
BIIB $274.04 $39,462
DMLP $28.58 $1,097
SAIA $208.19 $5,509
ACN $263.12 $173,235
ABBV $162.23 $286,901
INMD $34.37 $2,856
WES $25.51 $9,823
EHC $58.79 $5,867
CABO $674.19 $3,917
UI $265.17 $16,024
STX $51.05 $10,540
GSK $34.78 $70,881
SCCO $61.06 $47,205
MASI $145.01 $7,622
BCE $43.39 $39,586
CHE $511.00 $7,599
MED $111.79 $1,222
BRC $46.94 $2,335
AKAM $83.50 $13,130
LMT $483.22 $126,639
HON $212.19 $142,660
IEX $227.16 $17,133
GNTX $26.80 $6,287
NSC $245.79 $56,904
SNPS $315.31 $48,059
UL $50.45 $128,006
SLP $36.55 $742
WST $231.24 $17,119
PG $151.96 $360,100
ABT $107.83 $188,010
K $71.72 $24,477
SYK $241.66 $91,444
BKE $44.65 $2,237
DVA $72.80 $6,559
TSCO $219.90 $24,291
WERN $40.35 $2,550
SHW $237.48 $61,541
DCI $58.60 $7,131
LRCX $402.80 $54,934
UPS $173.61 $150,158
ISRG $261.65 $92,463
CTSH $55.58 $28,564
JHX $17.47 $7,839
LMAT $44.20 $972
ZYXI $13.88 $520
EXLS $169.10 $5,591
MPWR $340.28 $15,973
IAA $39.52 $5,286
IRM $49.00 $14,245
ATEN $16.34 $1,200
TECH $80.69 $12,666
KEYS $167.66 $29,977
CCI $134.86 $58,401
ICE $102.27 $57,123
ALSN $41.44 $3,833
ANET $119.17 $36,415
ABEV $2.75 $43,505
QSR $64.59 $19,811
HALO $56.74 $7,672
EXP $131.94 $4,861
POOL $296.48 $11,578
DSGX $68.52 $5,811
RDY $51.72 $8,527
DOX $89.23 $10,780
DOV $133.28 $19,132
MSM $81.33 $4,552
APH $74.89 $44,567
ADSK $181.90 $39,248
NKE $114.98 $179,897
EL $246.19 $87,844
LSCC $62.50 $8,566
LOW $200.06 $120,977
AOS $56.77 $8,673
BBY $80.17 $17,739
OMC $80.63 $16,442
SMTC $27.40 $1,749
TMO $543.41 $213,123
QCOM $106.97 $119,913
TTEK $143.60 $7,608
NOC $540.41 $83,176
NVDA $140.36 $345,286
LECO $142.66 $8,237
TKC $4.54 $4,361
AAP $145.30 $8,610
AYI $165.16 $5,298
MO $45.85 $82,171
VALE $16.92 $80,734
G $45.80 $8,393
PRDO $13.94 $936
MDT $76.30 $101,493
TU $19.20 $27,403
DG $245.01 $54,778
TNET $65.98 $4,106
AMCX $14.48 $622
GMED $72.78 $7,267
MTSI $60.75 $4,293
SBOW $27.11 $605
GSL $16.89 $613
LPRO $6.46 $816
CCSI $52.01 $1,031
ATVI $76.05 $59,519
SBH $12.14 $1,300
NFLX $276.88 $123,217
BRKR $66.37 $9,762
TPX $33.97 $5,808
CRVL $143.72 $2,481
MKC $83.24 $22,343
CGNX $46.15 $7,981
KFRC $54.03 $1,121
SAP $101.81 $126,336
CHH $109.52 $5,837
SCI $69.35 $10,666
MAS $46.14 $10,406
CRUS $72.52 $3,993
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.