Top 20 Stocks for Beginners: Large, Profitable, Low-Debt
Marvin picked 20 large, profitable companies with high Business Quality scores and debt no higher than equity, ranked by Overall score, with no more than three per sector. This is a research list, not advice.
Beginners often start with big, established companies that earn real profits and don't lean heavily on borrowed money. This list of 20 stocks is built on that idea. Each one is large, profitable, rated highly for business quality and carries debt no higher than its equity.
The list covers many sectors, from technology and healthcare to energy, industrials and consumer goods. Marvin allows no more than three companies from any one sector, so the list is not dominated by a single area of the market.
Keep in mind that these are descriptions of how each company looks today, not forecasts. Some entries show very fast one-year growth, and some are missing figures. Read each caution, and remember that a strong score does not remove the risk of owning a stock.
The list
How Marvin ranked these stocks
Marvin started with companies above a minimum size, then kept only large, profitable ones with a high Business Quality score and debt no more than equal to equity. They are ranked by Overall score, highest first, with at most three per sector. Marvin's scores run from 0 to 100 and are relative to each company's own industry, so a high score means the company compares well with its direct peers, not with every stock on the market.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). Large, profitable companies (above about $10 billion) with a Business Quality score of at least 65 and debt no more than equal to equity, highest Overall first; at most 3 per sector.
The stocks, one by one
AngloGold Ashanti Plc AU
AngloGold Ashanti scores 97 overall and 96 on quality. Revenue grew 70.8% last fiscal year, return on equity is 39.2%, and debt-to-equity is a low 0.28. Caution: operating margin and free cash flow margin are unavailable, so the profit picture is only partly visible.
Expand Energy Corporation EXE
Expand Energy has an overall score of 97. Revenue grew 186.3%, operating margin is 26.9% and free cash flow margin is 19.7%, with low debt at 0.19 debt-to-equity. Caution: growth that large in one year is a snapshot, and energy producers' results can swing a lot.
NVIDIA Corporation NVDA
NVIDIA pairs a quality score of 97 with an operating margin of 65.2% and a free cash flow margin of 41.9%, so it keeps a large share of sales as profit. Return on equity is 84.2%. Caution: growth of 65.5% is a single-year figure.
Sandisk Corporation SNDK
Sandisk shows revenue growth of 175.3%, an operating margin of 61.2% and a free cash flow margin of 56.8%, with almost no debt at 0.01 debt-to-equity. Caution: such a big one-year jump is only a snapshot, and hardware businesses can be cyclical.
Barrick Mining Corporation B
Barrick Mining has an overall score of 96, revenue growth of 31.2% and a free cash flow margin of 22.8%. Gross margin is 51.3% and debt-to-equity is low at 0.18. Caution: operating margin is unavailable, and return on equity of 18.8% is modest next to others here.
General Dynamics Corporation GD
General Dynamics shows steady, moderate numbers: revenue growth of 10.1%, operating margin of 10.2% and free cash flow margin of 11.5%, with debt-to-equity of 0.38. Caution: margins are thinner than for most companies on this list, and gross margin is unavailable.
Jack Henry & Associates, Inc. JKHY
Jack Henry combines an operating margin of 25.0% and a free cash flow margin of 27.3% with very little debt, at 0.04 debt-to-equity. Revenue growth is modest at 7.1%. Caution: its opportunity score of 67 is well below its quality score of 96.
Quest Diagnostics Incorporated DGX
Quest Diagnostics grew revenue 11.8%, with an operating margin of 14.1% and a free cash flow margin of 11.7%. Return on equity is 14.1%. Caution: debt-to-equity of 0.85 is higher than for most companies here, though still within Marvin's limit.
Comfort Systems USA, Inc. FIX
Comfort Systems USA has a quality score of 96, revenue growth of 29.5% and return on equity of 44.6%, with low debt at 0.11 debt-to-equity. Caution: gross margin of 25.7% and operating margin of 16.5% are thinner, as is common in construction work.
American Homes 4 Rent AMH
American Homes 4 Rent has a quality score of 89, return on equity of 8.0% and debt-to-equity of 0.76. Caution: revenue growth and margin figures are unavailable, so the view is thinner than for other picks, and return on equity is modest.
CF Industries Holdings, Inc. CF
CF Industries shows an operating margin of 41.1%, a free cash flow margin of 24.7% and return on equity of 43.5%, with revenue growth of 19.3%. Caution: debt-to-equity of 0.63 is higher than for many companies on this list.
The Procter & Gamble Company PG
Procter & Gamble has a quality score of 96, an operating margin of 22.7% and return on equity of 29.5%. Caution: revenue growth is slow at 3.3%, its opportunity score is only 63, and debt-to-equity is 0.64.
AMETEK, Inc. AME
AMETEK has a quality score of 97, an operating margin of 25.9% and a free cash flow margin of 23.2%, with low debt at 0.21 debt-to-equity. Caution: its opportunity score is only 55, and revenue growth is modest at 6.6%.
Brown & Brown, Inc. BRO
Brown & Brown grew revenue 22.8% and has an operating margin of 22.8%, with debt-to-equity of 0.64. Caution: return on equity is a modest 9.6%, and free cash flow margin is unavailable, so cash generation can't be checked here.
Boston Scientific Corporation BSX
Boston Scientific has a gross margin of 69.9%, an operating margin of 19.8% and revenue growth of 19.9%, with debt-to-equity of 0.51. Caution: its opportunity score of 69 is well below its quality score of 93.
EQT Corporation EQT
EQT has a quality score of 97, a gross margin of 83.7%, an operating margin of 42.5% and a free cash flow margin of 39.4%. Caution: return on equity is only 10.7%, and growth of 63.9% is a single-year figure in an industry with swings.
First Solar, Inc. FSLR
First Solar has an operating margin of 33.6% and a free cash flow margin of 27.9%, with almost no debt at 0.02 debt-to-equity. Revenue grew 24.1%. Caution: its opportunity score of 73 is lower than its quality score of 94.
Alphabet Inc. GOOGL
Alphabet has an operating margin of 33.1%, return on equity of 38.1% and revenue growth of 15.1%, with debt-to-equity of 0.19. Caution: its free cash flow margin of 11.9% is much lower than its operating margin, so less profit turned into free cash.
Royalty Pharma plc RPRX
Royalty Pharma has a high operating margin of 59.6% and a quality score of 94, but revenue growth is slow at 5.1%. Caution: return on equity is 8.3%, debt-to-equity of 0.92 is near Marvin's limit, and free cash flow and gross margin are unavailable.
Netflix, Inc. NFLX
Netflix has return on equity of 45.3%, an operating margin of 29.7% and a free cash flow margin of 23.1%, and revenue grew 15.9%. Caution: its opportunity score of 62 is modest, and debt-to-equity is 0.55.
Common questions
What does Marvin's Overall score mean?
The Overall score runs from 0 to 100 and summarizes how a company compares with others in its own industry today. It combines Marvin's Business Quality and Opportunity scores. It describes the present and is not a prediction of future results.
Why are there only up to three stocks from each sector?
Capping each sector keeps the list from being dominated by one part of the market. Companies in the same sector often face the same risks, so spreading the picks across sectors gives a broader starting point for research.
Does a high score mean a stock is safe for a beginner?
No. A high score means the company looks strong next to its industry peers on measures like quality and profitability. Stock prices can still fall, and some figures, such as one-year growth, may not repeat. Beginners usually do well to read about a company and think about spreading their money across several holdings.
Keep reading
- Top 20 Large-Cap Stocks Right Now, Ranked by Marvin Scores
- Top 20 Stocks to Hold for the Long Term, Ranked by Marvin
- Top 20 Good Stocks With the Least Debt
- Top 25 Quality Stocks Trading Well Below Their Highs
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.