Top 3 stocks with high ROIC, dirt-cheap P/FCF, and nearing a major zone (July 15 2025)
Your Quantamental guide to the the most promising trade setups in the market
GM everyone,
Welcome back to our Quantamental Zone Alert.
We’re kicking off the week with the market looking pretty chipper—stock futures soared thanks to Daddy Jensen’s dealmaking, CPI data is looking not-as-painful-as-once-thought, and there’s a fresh wave of optimism around the new earnings season.
But under the surface, cracks are forming.
JPow’s catching heat from all sides—the Trump camp is ramping up calls for his ousting, the market is practically hounding him for that rate cut, and now housing experts are warning that high rates are suffocating an already brittle real estate market.
So while the rally looks good now… weaknesses are just waiting for their moment to pounce.
That’s why instead of chasing momentum, we’re playing it smart and bringing back our first Quantamental screen—focused on ROIC, Revenue, Growth, P/FCF, and this time with the Altman Z-score—to help flag companies with strong financial footing.
All while nearing key Zones, of course.
That’s just a long way of saying: we want names that can actually hold up, even if this rally decides to roll over.
And we’ve got a few solid setups in this week’s issue. Let’s get to it.
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New to our Quantamental zone alerts? Here’s everything you need to know:
Each week, we screen for longer-term setups using a Quantamental approach—basically combining quantitative techniques and solid fundamental analysis.
Using our different Quantamental screens, we surface high-potential names with a strong track record, trading at a discount—and of course, with the timing lining up in our favor.
Last week, we used a mix of P/S, 1M Returns, Beta, and Zones to find a few promising stocks:
This week, here’s what we’re looking for:
High ROIC (>5%)
We’re after companies that know how to turn capital into real value. A high ROIC tells us management isn’t just sitting on assets, but using them to generate returns. And when that return consistently beats the company’s cost of capital? That’s the compounding engine we want to ride.
Sustainable Revenue Growth (3Y CAGR >5%)
We want businesses that aren’t just riding short-term trends but have proven they can grow the top line steadily over time. Paired with a high ROIC, it’s a combo that rarely disappoints.
Attractive Valuation (P/FCF within the 20th percentile rank)
A great business is good. A great business that’s also cheap relative to its own history? Sign us up. We’re looking for setups where the market’s been sleeping—because if the business quality is solid, that discount usually doesn’t last long.
Altman Z-score (>3.0)
Think of this as a sniff test for balance sheet durability. A high Z-score suggests financial strength and low bankruptcy risk. That way we’re not walking into a potential ticking time bomb.Approaching key zones (near a strong resistance)
Once the fundamentals check out, we zoom in on the charts. If a stock’s nearing a tried-and-tested support zone, it’s often a spot where buyers step in. It helps us time our entry and reduce downside risk. Even great businesses are better buys when they’re technically primed.
Btw, you can replicate our first four Quantamental criteria using any stock screener out there (we’re using Koyfin, but you can also use free ones like Finviz).
As for which stocks are nearing zones, you can find all that and more in the Trading Places platform:
What’s in this issue:
• High-potential opportunities
• This week’s most actionable setup
Our Quantamental screen results
Here are some of the names that popped up on our screens this week:
1. Adobe Inc. (ADBE)
ROIC (LTM): 36.36%
Total Revenues, CAGR (3Y FQ): 10.22%
P/FCF (3Y Rank): 2
Altman Z-Score: 12.26
2. United Therapeutics Corporation (UTHR)
ROIC (LTM): 16.31%
Total Revenues, CAGR (3Y FQ): 19.81%
P/FCF (3Y Rank): 4
Altman Z-Score: 11.75
3. Universal Health Services, Inc. (UHS)
ROIC (LTM): 11.71%
Total Revenues, CAGR (3Y FQ): 7.58%
P/FCF (3Y Rank): 9
Altman Z-Score: 3.17
Most actionable setup this week: ADBE
Technology • Software - Infrastructure • USA • NASD
Adobe’s that one company we all love to hate—for how bloated the apps are, how overpriced the subscriptions feel, or how every update manages to find new ways to ruin your workflow. But somehow… we all still end up using it. (Well maybe not us, personally. Have you even seen our memes??)
And that’s likely why ADBE shows up as a beast on the fundamentals—standing out this week as the most well-rounded name on our screen.
First, let’s talk about its ROIC. At 36.3%, ADBE isn’t just “solid”—it’s in elite territory when it comes to capital efficiency. That’s the kind of number you typically only see with software giants with high margins and a wider moat… and Adobe is definitely that.
Then there’s the top line. A 10.2% 3-year revenue CAGR might not seem explosive, but it’s strong enough for a company of Adobe’s size. Growth like that at scale suggests its ecosystem still commands loyalty—and has the pricing power to back it up. So far at least, it appears the rise of AI hasn’t derailed its momentum.
And despite all that strength, ADBE is trading at a P/FCF that ranks in the 2nd percentile vs. its past three years. That’s seriously cheap for a business with this kind of financial firepower… which probably means the market’s pricing in fears of emerging AI challengers. (But other than Veo 3, have you seen the slop going around these days?)
That said, if there’s one thing investors should not be worried about with Adobe, it’s balance sheet health. The company clocks in with an Altman Z-score of 12.5—quadruply above the 2.99 “hmm maybe reconsider” threshold, and well within the “don’t even worry about it” range.
So while gen-AI companies are lining up to chip away at the Photoshop Empire, Adobe’s still a fortress that’s got the war chest to make it a fair fight.
Now it’s time to look at the charts and talk zones.
Just a few months ago, ADBE bounced cleanly off a major support zone from June 2022—the same level that once triggered a monstrous 7-month, 87% climb. That zone’s clearly got some strength behind it, and the stock respected it again this past April.
Sure, ADBE doesn’t look like much right now—it’s hovering around its May 2022 zone, cooling down after an RSI spike from its most recent rally.
This zone seems to be holding for now, with multiple bounces in past weeks—suggesting dip buyers are still showing up.
And while volume’s tapered a bit, that kind of quiet consolidation is often what long-term base formations look like.
If this level holds—and especially if price can start pushing above this current zone—we could be looking at the early stages of another grind upward.
This ADBE setup may not scream urgency, but it’s one of the most structurally sound profiles out there right now.
That’s it for today’s issue of our all-new Quantamental Zone Alert. We’ll be back next week with fresh setups nearing key zones.
In the meantime:
Want to find more immediate setups?
The Trading Places platform is live—and free! Head on over and check out the Zone Scanner and Live Hot Picks.
Disclaimer: This isn't financial advice. This shouldn’t be news to you.