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15 handpicked stocks

Corporate Dragons: The Fortresses

Meet the financial titans built on massive cash reserves and minimal debt. These carefully selected companies offer exceptional stability during economic turbulence, giving your portfolio a strong defensive anchor when markets get rough.

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Han Tan | Market Analyst

Updated 1 day ago | Published at June 17

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

FCFS

FIRSTCASH HOLDINGS INC

FCFS

Current price

$136.52

Its pawn store business model generates consistent and significant cash flow, backed by tangible assets that provide a buffer in any economy.

CODI

Compass Diversified Holdings

CODI

Current price

$7.34

Operating as a diversified holding company, it draws cash flow from a wide array of businesses, ensuring financial stability.

ECPG

Encore Capital Group Inc

ECPG

Current price

$40.57

As a premier debt recovery firm, it maintains a robust capital position to strategically acquire debt portfolios at a discount.

About This Group of Stocks

1

Our Expert Thinking

We've identified companies with fortress-like balance sheets that dominate their sectors. These businesses generate substantial free cash flow from established operations while maintaining minimal debt, creating a powerful advantage in today's interest rate environment.

2

What You Need to Know

These financial fortresses serve as defensive anchors for your portfolio. Their independence from debt becomes especially valuable during economic downturns, as they can self-fund growth and even acquire competitors without relying on expensive external capital.

3

Why These Stocks

Each company was selected through rigorous financial statement analysis, prioritizing those with exceptional net cash positions and proven track records of disciplined capital management. They represent stability in volatile markets and resilience in challenging economic times.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year.

If you invested across these assets:

in 12 months it could be worth:

$1,000.00

+48.52%

Group Performance Snapshot

48.52%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 48.52% over the next year.

8 of 15

Stocks Rated Buy by Analysts

8 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🛡️

The Ultimate Economic Shield

These companies have built financial moats so strong they can weather almost any economic storm, potentially protecting your investments when other stocks falter.

💰

Cash-Rich Advantage

While debt-heavy companies struggle with rising interest rates, these cash-rich dragons can self-fund growth and opportunistically acquire competitors at bargain prices.

🔍

Hidden Stability Gems

Many investors overlook balance sheet strength in favor of flashier metrics, creating an opportunity for those who recognize the long-term value of these financial fortresses.

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