While the 5 FAANG stocks (Facebook (now Meta), Apple, Amazon, Netflix, and Google (now Alphabet)) have delivered incredible returns over the past decade, many now face structural headwinds.
They already trade at elevated valuations, many of these companies face slowing growth, and their sheer size make it increasingly difficult to compound at high rates going forward.
As dominant as they are, these companies are also increasingly constrained by regulatory scrutiny and saturated markets.
Meanwhile, their massive weight in the S&P 500 creates concentration risk, meaning that passive investors are already overexposed to a narrow group of mega-caps.
For long-term investors seeking better risk-reward, it may be time to look beyond the typical FAANG stocks.
The 5 companies listed below have strong competitive moats, scalable business models, and the ability to reinvest for long-term growth. This is the perfect recipe to be future compounders going forward.
Many of these next-gen names are tied to long-term themes like AI, cybersecurity, and digital payments. For those with a multi-decade mindset, they could be the foundation of the next great portfolio.
| Company Name (Ticker) | P/E Ratio | Analyst Upside |
| ASML Holding (ASML) | 27 | 26% |
| Adyen (ADYE.Y) | 41 | 22% |
| MercadoLibre (MELI) | 43 | 19% |
| Snowflake (SNOW) | 174 | 14% |
| CrowdStrike Holdings (CRWD) | 116 | 9% |
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ASML Holding (ASML)
ASML Holding (ASML) is practically the sole supplier of extreme ultraviolet (EUV) lithography machines used to manufacture the world’s most advanced semiconductors. It plays a critical role in the chip supply chain and serves customers like TSMC, Samsung, and Intel.
The company consistently generates strong cash flow, with over $9 billion in annual free cash flow for 2024.
As demand for AI chips and advanced computing continues to grow, ASML stands at the center of a multi-decade secular trend with durable pricing power and long-term growth potential.
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Adyen (ADYEY)
Adyen (ADYEY) is a global payment platform that powers digital transactions for some of the world’s biggest brands, including Spotify, Microsoft, and Meta. Its end-to-end infrastructure allows merchants to accept payments across channels and geographies without relying on patchwork systems.
Adyen has consistently posted high gross margins and strong growth, with net revenue increasing by over 20% year-over-year in the first quarter of 2025, and the company maintains a strong balance sheet with no debt.
As digital commerce expands and more businesses modernize their payment stacks, Adyen is positioned to be one of the long-term winners in the global fintech space.
Track Adyen’s financials, growth trends, and analyst forecasts on TIKR (it’s free)>>>
MercadoLibre (MELI)
MercadoLibre (MELI) is often called the Amazon and PayPal of Latin America, thanks to its leading positions in e-commerce, payments, and logistics across key markets like Brazil, Argentina, and Mexico. It continues to post strong top-line growth while expanding margins through its fintech arm, Mercado Pago.
The company generates billions in quarterly gross profit, reaching $3.09 billion in its most recent quarter, and remains highly profitable despite macro volatility in the region.
With growing adoption of digital payments and online retail in Latin America, MELI offers long-term investors exposure to a fast-growing, underpenetrated market with powerful tailwinds.
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Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
