A quality compounder is a business that not only sports durable competitive advantages but also builds on its success by consistently reinvesting its profits at high returns.

Companies with these characteristics are our definition of a "blue-chip". That said, here are three quality compounders that deserve a spot on your list.

Meta (META)

Market Cap: $1.55 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 Is META a Good Business?

1. Customers are spending more money on its platform as its average revenue per user has increased by 29.9% annually over the last two years
2. Share repurchases over the last three years enabled its annual earnings per share growth of 51.3% to outpace its revenue gains
3. Strong free cash flow margin of 26.2% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety

Meta’s stock price of $610.90 implies a valuation ratio of 11.5x 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: $70.1 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 Do We Love DASH?

1. Orders have increased by an average of 22% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
2. Incremental sales over the last three years have been highly profitable as its earnings per share increased by 931% annually, topping its revenue gains
3. Free cash flow margin grew by 13 percentage points over the last few years, giving the company more chips to play with

At $161.30 per share, DoorDash trades at 19.2x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.

Fair Isaac Corporation (FICO)

Market Cap: $26.83 billion

Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation (NYSE: FICO) develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.

Why Will FICO Outperform?

1. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 24.6% exceeded its revenue gains over the last two years
2. Robust free cash flow margin of 34.8% gives it many options for capital deployment
3. Returns on capital are growing as management capitalizes on its market opportunities

Fair Isaac Corporation is trading at $1,132 per share, or 24.3x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

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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.