HIGH QUALITY STOCKS
VOL. XCIV, NO. 247
Updated June 2026 · Top 50 quality stocks
Best Quality Stocks 2026, Ranked for Business Strength
High quality stocks ranked across profitability, margins, free cash flow quality, durability, solvency, and accounting quality.
Quality investing starts with a simple question: which companies show superior profitability, clean cash generation, durable economics, resilient balance sheets, and credible accounting quality? This ranking scores the Liquid North Atlantic universe across six quality composites, then the simulated strategy holds up to 500 stocks with dynamic market-cap weighting to make the result comparable with an S&P 500-style benchmark.
For research and educational purposes only · Not financial advice
Top High Quality Stocks
Top 500 stocks in the ranking
As of 2026-06-20
| Rank | Ticker | Flag | Company | MCap | Profit | Margin | FCF | Durable | Solv | Acct | Score |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 01 | GAW | Games Workshop Group Plc | $8.9B | 99.9 | 97.4 | 97.8 | 84.6 | 95.2 | 95.3 | 99.99 | |
| 02 | CRUS | Cirrus Logic, Inc. | $8.4B | 94.9 | 86.7 | 97.8 | 94.1 | 98.6 | 96.5 | 99.97 | |
| 03 | ABS | Asseco Business Solutions SA | $802M | 98.3 | 92.3 | 96.3 | 98.8 | 89.0 | 88.3 | 99.96 | |
| 04 | TXT | TEXT SA | $290M | 100.0 | 94.6 | 96.6 | 97.6 | 89.6 | 78.9 | 99.95 | |
| 05 | OLY | Olympia Financial Group, Inc. | $176M | 99.8 | 95.1 | 96.3 | 93.5 | 79.9 | 89.2 | 99.93 | |
| 06 | IRMD | IRadimed Corp. | $1.2B | 97.9 | 95.4 | 94.0 | 84.5 | 96.0 | 86.3 | 99.92 | |
| 07 | GGG | Graco, Inc. | $12.6B | 95.5 | 88.7 | 94.9 | 98.1 | 99.0 | 75.3 | 99.91 | |
| 08 | QRS | Quercus TFI SA | $147M | 98.2 | 92.6 | 99.7 | 71.1 | 94.6 | 99.9 | 99.89 | |
| 09 | BVXP | Bioventix Plc | $121M | 99.9 | 98.7 | 90.4 | 96.4 | 95.7 | 64.1 | 99.88 | |
| 10 | NVEC | NVE Corp. | $534M | 96.3 | 97.3 | 89.9 | 98.7 | 91.6 | 78.9 | 99.86 | |
| 11 | UTHR | United Therapeutics Corp. | $22.8B | 93.9 | 96.1 | 93.4 | 82.4 | 99.4 | 91.8 | 99.85 | |
| 12 | POLR | Polar Capital Holdings Plc | $1.1B | 99.6 | 91.6 | 90.1 | 82.0 | 99.0 | 91.6 | 99.84 | |
| 13 | SII | Sprott, Inc. | $3B | 96.6 | 93.8 | 97.8 | 80.6 | 99.1 | 82.2 | 99.82 | |
| 14 | META | Meta Platforms, Inc. | $1.5T | 97.8 | 98.6 | 98.2 | 97.3 | 76.4 | 79.0 | 99.81 | |
| 15 | RMD | ResMed, Inc. | $27.5B | 96.0 | 94.8 | 96.3 | 97.4 | 89.0 | 73.7 | 99.80 | |
| 16 | MNST | Monster Beverage Corp. | $89.2B | 97.6 | 89.6 | 90.5 | 97.9 | 99.9 | 71.9 | 99.78 | |
| 17 | AOF | ATOSS Software SE | $1.3B | 99.9 | 96.6 | 83.8 | 90.8 | 97.8 | 81.5 | 99.77 | |
| 18 | RMS | Hermes International SCA | $206.7B | 98.4 | 95.0 | 86.4 | 95.6 | 92.5 | 82.2 | 99.76 | |
| 19 | XTB | XTB SA | $3.5B | 95.3 | 96.4 | 99.7 | 75.0 | 90.3 | 94.7 | 99.74 | |
| 20 | JKHY | Jack Henry & Associates, Inc. | $9.1B | 96.4 | 89.5 | 90.8 | 99.5 | 83.2 | 94.0 | 99.73 |
Bucket Distribution
Universe-adjusted annualized return by rank bucket. The zero line is the average return across the ranked universe.
Universe
7.4%
Benchmark
+3.6%
Top
+5.1%
Profitability vs FCF Quality
Each flag is a ranked stock at its listing country. Larger flags rank higher overall; the dashed lines mark the group averages.
Biggest Movers
As of 2026-06-20
Stocks with the biggest ranking moves since the previous refresh.
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See the biggest movers
The biggest rank changes between published snapshots are free for members. Log in or create a free account to unlock them.
Backtested Strategy
Current Holdings
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Growth of $100,000.00
01/2006 - 06/2026
- Annualized Return
- 14.57% vs 11.17% benchmark
- Sharpe Ratio
- 0.84 vs 0.67 benchmark
- Sortino Ratio
- 1.12 vs 0.88 benchmark
- Max Drawdown
- -47.06% vs -55.19% benchmark
- Alpha
- 3.25% vs SPY benchmark
- Beta
- 1.00 vs SPY benchmark
General Info
- Period
- 2006-01-01 - 2026-06-22
- Benchmark
- S&P 500 (SPY:USA)
- Universe
- Liquid North Atlantic
- Number of Positions
- 500
- Rebalance Frequency
- Every 4 Weeks
- Annual Turnover
- 15.21%(~76 trades/yr)
- Overall Winners
- (1,049/2,103) 49.88%
- Correlation to S&P 500
- 0.95
Performance by Calendar Year
* from 01/02/06·** to 06/19/26
Advanced Metrics
- Information Ratio
- 0.45 active-return efficiency
- Calmar Ratio
- 0.31 return vs drawdown
- Volatility
- 15.94% vs 15.15% benchmark
- Ulcer Index
- 10.41% vs 12.66% benchmark
Recent Trades
As of 2026-06-22
The most recent simulated buys and sells from the latest rebalances.
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See the latest trades
The simulated buys and sells from the latest rebalances are free for members. Log in or create a free account to unlock them.
- Currency
- USD
- Sizing
- Variable weights
- Weighting
- Company size
- Positions
- 500
- Reconstitution
- Every 4 weeks
- Rebalance
- Every 4 weeks
Universe
This ranking uses the Liquid North Atlantic universe, so the list starts from liquid North American and Atlantic-market stocks that are easier to trade than thin or restricted names.
Position Sizing
The portfolio targets 500 positions with dynamic weights based on market capitalization. This makes the simulation closer to an S&P 500-style quality portfolio than a concentrated equal-weight stock picker.
Buy Rules
New buys must score above 95 on the quality ranking, so the strategy only adds stocks in roughly the top 5% of the eligible universe. The rank blends profitability, margins, free cash flow quality, durability, solvency, and accounting quality before a company can enter the simulated portfolio.
Sell Rules
Holdings are sold when their quality rank falls below 80, which gives existing positions room to drift without forcing immediate turnover. The model does not use hedge or market-timing rules, and it avoids trading stocks involved in mergers.
Trading Costs
Trades fill at the next bar's average price, with $0.005 per share commission and no management fee. Variable slippage adds a base cost plus a liquidity cost, so cheaper, thinly traded names are modeled as more expensive to trade.
Bias Controls
The backtest uses point-in-time data with preliminary fundamentals, so each rebalance only sees information that would have been available at that date. The universe includes delisted stocks and historical constituents, which helps reduce survivorship bias instead of testing only companies that survived to today.
About these models
These are illustrative backtests, not portfolios to copy. They show how a hypothetical strategy built on the ranking might have behaved after rebalancing rules, trading costs, timing, and position sizing are layered on top. Results are not actual trading returns, not investment advice, and do not guarantee future performance. We validate that each ranking can sort stocks within its universe in a historically useful way, but a good ranking can still lead to better or worse outcomes once it becomes a tradable model.
Each stock is scored 0 to 100 across profitability, margins, free cash flow quality, durability, solvency, and accounting quality. Higher block scores are better, and the final score is their weighted blend.
Ranking System
Every stock in the universe is scored 0 to 100 across six composites. The factor scores roll up into the block scores in the table above, and the weighted total drives the final rank.
Profitability25% weight
Ranks gross profits on assets, returns on investment, ROA, ROE, and asset turnover across current and multi-year measures.
- More gross profit for each dollar of assets, latest quarter
- More gross profit for each dollar of assets, annual
- Higher return on invested capital, recent year
- Higher average return on invested capital over five years
Margins15% weight
Measures gross, operating, EBITDA, pretax, and net margins, plus current gross and operating margins versus history.
- Higher gross margin, recent year
- Higher average gross margin over five years
- Higher operating margin, recent year
- Higher average operating margin over five years
FCF Quality20% weight
Checks operating cash flow, free cash flow margins, cash-flow growth, cash conversion, and accrual risk.
- More operating cash flow from each dollar of sales
- More operating cash flow from each dollar of assets
- Higher free cash flow margin
- More free cash flow from each dollar of assets
Durability15% weight
Prefers steadier returns, margins, and free cash flow, plus persistent positive earnings, EBITDA, EPS, and operating cash flow.
- Less volatility in return on assets
- Less volatility in return on invested capital
- Less volatility in gross margin
- Less volatility in operating margin
Solvency15% weight
Measures debt, liabilities, interest coverage, liquidity ratios, and cash relative to assets.
- Lower total debt compared with assets
- Lower long-term debt compared with capital
- Lower total debt compared with equity
- Less recent debt growth compared with assets
Accounting10% weight
Uses Beneish sub-signals, Piotroski F-Score, dilution, and goodwill intensity as accounting-quality checks.
- Lower overall Beneish accounting-risk score
- Lower receivables growth versus sales growth
- Less gross-margin deterioration risk
- Lower sales and administrative expense warning signal
Quality Stocks FAQ
What are quality stocks?
Quality stocks are companies with signs of durable profitability, strong margins, reliable cash generation, resilient balance sheets, and cleaner accounting than weaker peers.
What are the best quality stocks right now?
The table highlights the current top 50 high quality stocks from the latest published strategy snapshot. It is a ranked research shortlist, not a personal recommendation or a guaranteed list of stocks to buy.
How does the quality stock ranking work?
The ranking uses the Liquid North Atlantic universe, then scores stocks across profitability, margins, free cash flow quality, durability, solvency, and accounting quality. The simulated strategy buys stocks above rank 95 and sells holdings below rank 80.
Why does the strategy hold 500 stocks?
The simulated strategy targets 500 positions with dynamic market-cap weighting, which makes it closer to an S&P 500-style quality index than a concentrated stock-picking portfolio.
Why use market-cap weighting for a quality strategy?
Market-cap weighting keeps position sizes tied to company scale and makes the simulation more comparable with the S&P 500 benchmark. The ranking decides eligibility and priority; company size determines the ideal weights.
Does this ranking include valuation?
No. This page is focused on quality characteristics rather than valuation. Investors still need to review price, expected growth, cyclicality, and risk before making any decision.
Are quality stocks always safe?
No. A high quality company can still be disrupted, overvalued, exposed to cyclicality, or hit by company-specific mistakes. This ranking is a starting point for due diligence, not financial advice.
More Rankings & Systems
Undervalued Stocks
A value ranking focused on multi-measure valuation, earnings quality, financial strength, and conservative investment.
Dividend qualityDividend Stocks
A complementary ranking focused on payout safety, dividend growth, balance sheet strength, and valuation.
Defensive resilienceDefensive Stocks
A ranking focused on lower-volatility, recession-resistant traits, financial strength, and valuation sanity.
Feedback
Spot something confusing, stale, or worth improving? Send feedback on the ranking, strategy assumptions, holdings table, or explanation.
Research & Backtest Disclaimer
These rankings are research shortlists, not investment advice, personalized recommendations, or offers to buy or sell securities. They do not account for your objectives, risk tolerance, taxes, time horizon, portfolio, or personal financial situation.
Backtests and simulations are historical models, not live results or guarantees of future performance. Data, assumptions, transaction costs, liquidity, turnover, taxes, and implementation can materially change actual outcomes. Verify current company data and do your own due diligence before making any investment decision.