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 such as these set the gold standard in public market investing. That said, here are three quality compounders that could turbocharge your returns.

Netflix (NFLX)

Market Cap: $399.8 billion

Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.

Why Will NFLX Beat the Market?

1. Global Streaming Paid Memberships have grown by 15.7% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
2. Excellent EBITDA margin of 29.8% highlights the efficiency of its business model, and its profits increased over the last few years as it scaled
3. Free cash flow margin increased by 15.8 percentage points over the last few years, giving the company more capital to invest or return to shareholders

Netflix is trading at $94.53 per share, or 24.3x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.

Monster (MNST)

Market Cap: $72.48 billion

Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.

Why Should You Buy MNST?

1. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 27.7%, and it turbocharged its profits by achieving some fixed cost leverage
2. Robust free cash flow margin of 23% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are growing as it capitalizes on even better market opportunities

Monster’s stock price of $75.24 implies a valuation ratio of 34.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Sterling (STRL)

Market Cap: $12.91 billion

Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ: STRL) provides civil infrastructure construction.

Why Are We Backing STRL?

1. Market share has increased this cycle as its 12.4% annual revenue growth over the last two years was exceptional
2. STRL is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
3. Improving returns on capital reflect management’s ability to monetize investments

At $419.87 per share, Sterling trades at 31.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.