Our Highest Rated Stocks

Featured Companies

Our research focuses on two fundamental questions that determine investment success. First, does this company have the competitive advantages and reinvestment opportunities to compound capital over decades? The best businesses generate excess cash that management can productively deploy into expanding markets, improving operations, or acquiring competitors, creating a virtuous cycle of growth that persists across economic cycles.

Second, does the current price provide meaningful downside protection? Even exceptional companies become poor investments when purchased at inflated valuations. We seek businesses trading at discounts to their intrinsic value, providing a margin of safety that protects capital while we wait for the market to recognize their true worth.

This dual focus on business strength and price discipline helps identify companies positioned to deliver superior returns regardless of their size, sector, or current market sentiment.

Below are the highest rated stocks across all market capitalizations in our research portfolio.

Ituran Location and Control Ltd. ITRN

Ituran looks like a “compounder‑lite”: a regionally entrenched, cash‑rich operator that grows steadily by adding subscribers through insurer and OEM channels and then layering on higher‑margin services like UBI and connected‑car features. The numbers back it up — ~72–73% recurring revenue, ~21–22% operating margins, ~18% free‑cash‑flow margin, ~22–23% ROIC, and net cash. The swing factor for faster compounding is execution: turning the motorcycle opportunity into mass‑market OEM wins and deepening insurer programs in Israel and Latin America. Regulatory and FX noise are part of the package, but the core engine is resilient. At a price below our scenario‑weighted fair value and with a ~5% dividend, the setup offers a sensible balance of quality and upside without needing heroics to work.

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NICE Ltd. NICE

NICE looks like a real compounder: a sticky, mission‑critical platform with 73% of revenue now in recurring cloud, 111% net revenue retention, double‑digit ROIC trending up, and FCF that was 29% of sales in 2024. The big swing factor is AI—already growing fast at +42% ARR but still early as a mix of revenue—which, combined with sovereign‑cloud and public‑sector wins, can power multi‑year expansion if execution stays tight. The bear case is about hyperscaler/CRM bundling and AI compute costs capping margins, plus timing risk on big programs and integrations. With a near net‑cash balance sheet, expanding margins, and a market price well below a reasonable intrinsic value range, the setup offers quality and asymmetry—provided NICE continues to out‑execute and turns today’s AI promise into durable, high‑margin revenue.

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UnitedHealth Group Incorporated UNH

UnitedHealth remains the 800-pound gorilla of U.S. health care—licensed everywhere, armed with vast claims data and a vertically integrated services stack that competitors still struggle to copy. 2024-25 proved the company is not bullet-proof: medical-cost surprises, a headline-grabbing cyber-attack and DOJ scrutiny knocked margins and the share price down hard. If management’s current repair job works, free cash flow should rebound toward its long-run US$25-30 billion trajectory and compound at attractive rates thanks to the ageing population and Optum’s asset-light tech offerings. That potential, combined with a stock price that already discounts a lot of bad news, makes UNH a classic “quality franchise with a bruise”—not a slam-dunk, but a candidate for patient investors who can stomach regulatory noise and execution risk.