3 Quality Compounders Worth Your Attention

Quality compounders are flywheels. Said differently, they’re businesses that generate heaps of profits and consistently reinvest them to produce even more profits. Rinse and repeat.

We love companies like this because something about their business models makes them special. Keeping that in mind, here are three quality compounders that could turbocharge your returns.

Meta (META)

Market Cap: $1.57 trillion

Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ:META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.

Why Will META Beat the Market?

1. Customer spending is rising as the company has focused on monetization over the last two years, leading to 29.6% annual growth in its average revenue per user
2. Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 61.4%, and it turbocharged its profits by achieving some fixed cost leverage
3. Share buybacks catapulted its annual earnings per share growth to 56%, which outperformed its revenue gains over the last three years

Meta’s stock price of $616.01 implies a valuation ratio of 10.4x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.

DexCom (DXCM)

Market Cap: $23.5 billion

Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ:DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.

Why Should You Buy DXCM?

1. Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 12.5% over the past two years
2. Free cash flow margin jumped by 26 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
3. Rising returns on capital show management is finding more attractive investment opportunities

At $61.01 per share, DexCom trades at 22.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Amphenol (APH)

Market Cap: $168.1 billion

With over 90 years of connecting the world's technologies, Amphenol (NYSE:APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.

Why Are We Backing APH?

1. Annual revenue growth of 42.1% over the last two years was superb and indicates its market share increased during this cycle
2. Additional sales over the last two years increased its profitability as the 55.5% annual growth in its earnings per share outpaced its revenue
3. Strong free cash flow margin of 15.4% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute

Amphenol is trading at $136.40 per share, or 27.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.