H1 2026: our quality stocks vs the S&P 500

2026-06-23 · By Lubin Danilo, founder of Lubin Investment

As of June 23, 2026, the S&P 500 is up ~8.5% since January. Our screener shows 3 10/10 stocks in buy territory: ResMed (RMD, -3.6% below target), Kinross Gold (KGC, -7.8% below target) and DPM (-4% below target). H1 was marked by major corrections: ACN -18% post-earnings, LULU -46% YTD, RMD -28% from peak.

The market as of June 23, 2026

S&P 500 is up ~8.5% since January 1, 2026. Main catalysts: US economic resilience (no recession), AI earnings upgrades (Nvidia leading), and Fed pause on rates (neutral monetary policy). Best-performing sectors: AI semiconductors and software. Underperforming: commercial real estate (REITs under pressure), discretionary retail, and some specialty pharmas.

Stocks in buy territory as of June 23, 2026

Stock	Ticker	Score	P/FCF	Price	Target	Gap
ResMed	RMD	10/10	16.7×	$188.45	$195.55	-3.6%
Napco Security	NSSC	10/10	24.3×	$37.50	$39.51	-3.5%
Kinross Gold	KGC	10/10	12.6×	$26.30	$28.52	-7.8%
DPM Precious Metals	DPM	10/10	13.1×	$44.45	$46.31	-4.0%
MercadoLibre	MELI	10/10	6.8×	$1,589	$2,884	-45% (very deep)

Major H1 2026 events

Accenture (ACN, 8/10) dropped 18% on June 18 after a revenue miss and guidance cut, lowest level since 2016. ACN now at P/FCF 7.6×. Lululemon (LULU, 8/10) is down 46% YTD at $112, new ex-Nike CEO, management restructuring. Carnival (CCL, 7/10) reported Q2 on June 23, strong cruise travel recovery confirmed. Nvidia (NVDA, 9/10) remains at 45× P/FCF, demanding but AI growth still strong.

Has our method outperformed the market?

Our 10/10 stocks are, by construction, companies with above-average FCF growth. Long-term, this fundamental quality generally translates to market outperformance. In H1 2026, the key signal is 4 simultaneous 10/10 buy-territory opportunities (RMD, NSSC, KGC, DPM). These entry points arise rarely and are strong signals by our method. Capturing them is what differentiates the methodical investor from the passive investor.

FAQ

How many 10/10 stocks are in buy territory right now?

As of June 23, 2026: 4 10/10 stocks are below their buy targets, RMD (-3.6%), NSSC (-3.5%), KGC (-7.8%) and DPM (-4%). MercadoLibre (MELI) is -45% below target (very strong signal, but with LatAm FX risk to consider).

Why did ACN drop 18% if it's an 8/10?

ACN reported an $80M revenue miss and cut annual guidance to +3-4% (vs +4-7% expected). The 18% drop is excessive per our analysis, long-term fundamentals remain solid. But our method doesn't recommend ACN at P/FCF 7.6× (above our $5.5 entry target).

Is LULU at -46% YTD an opportunity?

LULU is 8/10, not 10/10. Our method doesn't flag it as a priority buy. Management transition risk is real (new CEO). For 10/10 stocks in buy territory (RMD, KGC, DPM), opportunities are clearer.

Should I buy now or wait?

Our method is a fundamental screener, not a market timing signal. 'In buy territory' means the price is below our intrinsic value calculated via P/FCF × 7×. We don't predict short-term movements. Discipline means buying 10/10s below target and holding 5-10 years.

About the author

Written by Lubin Danilo, founder of Lubin Investment. A self-taught individual investor, I find fundamental analysis fascinating, and it has delivered excellent results. For three years now, my performance has beaten the S&P 500. But analyzing every stock took too much time: sites with incomplete data, calculation methods and criteria never aligned with mine. And spotting the best stocks was just as time-consuming, even with my own well-defined checklist. So I put my software development background to work to build this software, base my investment strategy on its results, and share it with people who share the same passion as me. It judges a company's quality and its price separately, using criteria drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran).