Our 60 perfect stocks: a Lubin screener portrait 2026

2026-06-22 · By Lubin Danilo, founder of Lubin Investment

Out of 5,000 stocks analyzed, 60 reach our maximum score. They concentrate in a few excellence niches: specialty insurance (8+), B2B software (9+), fintech and payments (3+). Valuations range from 0.6x for OMAB to over 85x for Shopify — enormous dispersion at equivalent fundamental quality.

A rigorous filter: 60 out of 5,000

Our screener evaluates each stock on ten criteria: revenue recurrence, FCF margins, debt, ROIC, growth, management quality, competitive advantage, revenue visibility, pricing power and relative valuation. Achieving the maximum score on all criteria is rare: only 60 stocks manage it among the 5,000 we analyze. This is not a pure quantitative filter — it includes a qualitative appreciation of the business model and the durability of the competitive advantage.

Sector breakdown: insurance and software dominate

The two most represented sectors are specialty insurance (Erie Indemnity, Kinsale, RenaissanceRe, Cincinnati Financial, and others) and B2B subscription software (GoDaddy, Qualys, Nutanix, Paycom, Paychex, Intuit, Roper Technologies, etc.). Both families share the same logic: contractual revenues, high margins, low cycle sensitivity. We also find fintech and payments players (Mastercard, Visa, PayPal in some configurations), business services (Rollins, Cintas), and niche players like VeriSign (internet registries) or OMAB (Mexican airports).

Valuation distribution: from 0.6x to 85x

The valuation dispersion is one of the most striking features of our group of 60. At one extreme, OMAB (Mexican airports) trades at below 1x its annual FCF — an exceptional situation linked to temporary political factors. At the other extreme, Shopify (SHOP) exceeds 85x, a valuation implying sustained exponential growth for many years. In between, most of our 60 stocks fall in the 15x to 35x range, reflecting the premium granted to quality and revenue visibility.

Geography and size: a US majority with non-US gems

More than 80% of our 60 stocks are American. The US dominates because the US stock market is the deepest and most transparent, facilitating our analysis. We do find a few remarkable non-US players: ASML (Netherlands, EUV machine monopoly for semiconductors), TSM (Taiwan, world reference chip foundry), Afya (Brazil, private medical education). In terms of market cap, the group ranges from small caps (NSSC, MCY) to mega caps (Mastercard, Visa, Intuit), proving that fundamental quality is not reserved for large companies.

FAQ

Do the 60 stocks change over time?

Yes, the list evolves. Some stocks lose their maximum score if their fundamental quality deteriorates (excessive debt, loss of pricing power, management change). Others enter the group when they meet our criteria. We publish significant updates on the blog.

Should you buy all of them?

No. Our method selects maximum-quality stocks, but recommends buying only when the price is in the buy zone (below our entry target). Some stocks in the group are currently too expensive to offer sufficient safety margin.

Why is consumer technology underrepresented?

Consumer tech companies (smartphones, social media, gaming) often have less recurring revenues and higher sensitivity to consumer trends. Our method favors contractual revenues and visibility, explaining the overrepresentation of B2B software and insurance.

How do you calculate the score?

Ten criteria, each scored 0 to 1. A perfect score requires excelling on all criteria simultaneously: recurrence, margins, debt, ROIC, growth, management, competitive advantage, visibility, pricing power and valuation. Most companies fail on two or three criteria, which explains why only 60 out of 5,000 reach the maximum.

OMAB at 0.6x FCF — is that an error?

No. OMAB manages northern Mexico's airports under long-term concession. The low valuation reflects Mexican political risk and regulatory uncertainties compressing the market multiple. The fundamental business quality (airport monopoly, concession, recurring FCF) is real, but country risk reduces multiple expansion.

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About the author

Written by Lubin Danilo, founder of Lubin Investment. A self-taught individual investor, I have analyzed stocks through their fundamentals for several years and invest my own money with this method. I codified it into a tool that judges a company's quality and its price separately, using criteria drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran).