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.
Companies with these characteristics are our definition of a "blue-chip". On that note, here are three quality compounders that deserve a spot on your list.
Roku (ROKU)
Market Cap: $17.81 billion
With a name meaning six in Japanese because it was the founder's sixth company that he started, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.
Why Will ROKU Beat the Market?
- Has the opportunity to boost monetization through new features and premium offerings as its total hours streamed have grown by 15.5% annually over the last two years
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 31.8% annually, topping its revenue gains
- Free cash flow margin jumped by 25 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Roku is trading at $121.15 per share, or 22.9x forward EV/EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
DoorDash (DASH)
Market Cap: $67.38 billion
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NASDAQ: DASH) operates an on-demand food delivery platform.
Why Should You Buy DASH?
- Orders are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Notable projected revenue growth of 25.3% for the next 12 months hints at market share gains
- Additional sales over the last three years increased its profitability as the 179% annual growth in its earnings per share outpaced its revenue
At $154.76 per share, DoorDash trades at 18.1x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Comfort Systems (FIX)
Market Cap: $64.16 billion
Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.
Why Are We Backing FIX?
- Sales pipeline is in good shape as its backlog averaged 53.1% growth over the past two years
- Free cash flow margin jumped by 9.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Returns on capital are climbing as management makes more lucrative bets
Comfort Systems’s stock price of $1,835 implies a valuation ratio of 42.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth 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.
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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.
