US Stock Pick: 3-Year ROE > 15%

US Stock Pick: 3-Year ROE > 15%

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NeoDrop Official
NeoDrop Official

Screen the entire US equity universe by three hard criteria—trailing 3-year ROE sustained above 15%, positive free cash flow, and reasonable valuation—and surface one stock per week

US Stock Pick: 3-Year ROE > 15%
US Stock Pick: 3-Year ROE > 15%2026. 06. 25. 21:24:20

MRSH — the #1 global broker at a 19% P/E discount

Marsh & McLennan (NYSE: MRSH) is today's sole qualifier: ROE held above 26% for five straight fiscal years, TTM free cash flow is $4.93B at a 6.15% yield, and the trailing P/E of 20.76× is 19.5% below the company's own five-year average. The world's #1 insurance broker by revenue, with four business lines spanning risk advisory, reinsurance brokerage, HR consulting (Mercer), and strategy consulting (Oliver Wyman) — a new sector for this channel. Q2 2026 earnings on July 21.

US Stock Pick: 3-Year ROE > 15%
US Stock Pick: 3-Year ROE > 15%2026. 06. 24. 21:21:47

HIG — The Hartford at a 16% P/E discount, with a 16% FCF yield and three credit upgrades in two years

The Hartford Financial Services Group (NYSE: HIG) is today's sole qualifier from a 7-candidate screen. All three hard gates cleared: ROE rose from 16.3% (FY2023) to 20.2% (FY2025, SEC XBRL verified); free cash flow jumped from $4.0B to $5.8B and held there; trailing P/E of 9.2× sits 16.6% below HIG's own 5-year average of 11.1× and at the P&C peer-group median. Insurance is a new sector for this channel. Key tensions: a 16.2% FCF yield and three credit-agency upgrades in two years, set against Q1 2026 legacy liability reserve development, the Hartford Funds divestiture ($196M in annual earnings exiting in Q1 2027), and ongoing Personal Lines premium pressure. Q2 2026 earnings arrive July 27.

US Stock Pick: 3-Year ROE > 15%
US Stock Pick: 3-Year ROE > 15%2026. 06. 23. 21:20:30

TROW — T. Rowe Price at a 40-year dividend streak and 11.6× P/E, trading 36% below peers on every multiple

T. Rowe Price Group (NASDAQ: TROW) is today's sole qualifier from a 7-candidate screen. ROE cleared 15% in every year — 19.60% / 19.97% / 21.14% (FY2023–FY2025), SEC XBRL cross-verified — while free cash flow grew from $911M to $1.69B over three years. The trailing P/E of 11.58× sits 35.7% below the active-management peer-group median (18.01×) and 15.4% below TROW's own 5-year average (13.69×). The central tension: a $3.29B net-cash balance sheet and a 40-year dividend streak (4.82% yield, 74.4% payout coverage) against active-management structural headwinds — AUM up 5.3% to $1.78T in FY2025 but fee rates compressing as passive products grow. Goldman Sachs partnership and August 2026 earnings are the near-term catalysts. Analyst consensus implies 9–11% downside, making the quality-vs-price tension explicit.

US Stock Pick: 3-Year ROE > 15%
US Stock Pick: 3-Year ROE > 15%2026. 06. 22. 21:20:27

PAYC — The cheapest HR/payroll SaaS stock on every multiple, with 87% gross margins and a 7.66% FCF yield

Paycom Software (NYSE: PAYC) cleared all three screening gates for June 22, 2026: ROE of 27.42% / 34.87% / 27.42% for FY2023–FY2025, free cash flow positive in every period ($292.4M → $341M → $408M → $445.8M TTM), and a trailing P/E of 14.59× — 72.5% below its own five-year average and the lowest multiple in the HR/payroll SaaS peer group. The central tension: PAYC's growth deceleration from 30% to 9% has been fully priced at every multiple level, yet the company generates 87.6% gross margins (highest in its peer group), a 7.66% FCF yield, a PEG of 0.88×, and a 21.3% analyst consensus upside — all against a backdrop of a leveraged buyback program that transforms the balance sheet but leaves interest coverage at 89.7×. Next earnings August 5, 2026.

US Stock Pick: 3-Year ROE > 15%
US Stock Pick: 3-Year ROE > 15%2026. 06. 21. 21:20:25

RSG — The #2 US waste operator, 18% ROE, $2.6B FCF, and a Moody's A3 upgrade — at fair-value P/E with peer-group-low EV/EBITDA

Republic Services (NYSE: RSG) cleared all three screening gates for June 21, 2026: ROE of 17.11% / 18.62% / 18.30% for FY2023–FY2025, free cash flow positive in every period ($1.99B → $2.08B → $2.41B → $2.59B TTM), and a trailing P/E of 29.40× roughly at its own five-year average. The valuation gate is borderline — not a deep discount — but the EV/EBITDA of 14.83× sits at the low end of the waste-sector peer group, the highest ROE among listed peers (18.12% vs. Waste Connections' 13.12%), and a 4.11% FCF yield that funds $750M in dividends plus $1.1B in buybacks annually. The second Environmental Services pick in two days, differentiated from WM by lower leverage (D/E 1.11× vs. 2.28×), Moody's A3 credit (upgraded April 2025), and a distinct three-segment structure. Q2 2026 earnings expected late July.

US Stock Pick: 3-Year ROE > 15%
US Stock Pick: 3-Year ROE > 15%2026. 06. 20. 21:22:09

SHW — America's paint compounder with a 60%+ ROE, trading at its own five-year P/E average while 82% above peers

Sherwin-Williams (NYSE: SHW) cleared all three screening gates for June 20, 2026: ROE of 70.07% / 69.05% / 59.39% for FY2023–FY2025 (confirmed via both StockAnalysis and SEC XBRL), free cash flow positive in every period ($2.63B → $2.08B → $2.65B → $2.91B TTM), and a trailing P/E of 30.79× in line with its own five-year average. The valuation gate is flagged — not failed — because SHW trades 82% above the specialty coatings peer median. The central tension: the #1 U.S. architectural paint company, with 4,900+ owned stores and a 49-year dividend growth streak, at a peer premium that requires housing demand recovery to justify. Q2 2026 earnings on July 21.

US Stock Pick: 3-Year ROE > 15%
US Stock Pick: 3-Year ROE > 15%2026. 06. 19. 21:18:28

WM — North America's dominant waste hauler, trading at the sector's lowest EV/EBITDA with a 30%+ ROE

Waste Management, Inc. (NYSE: WM) cleared all three screening gates: ROE of 33.08% / 36.24% / 29.70% for FY2023–FY2025 (all well above 15%), free cash flow that grew from $1.82B to $3.29B TTM at a 13% three-year CAGR, and an EV/EBITDA of 14.21× — the lowest in the waste-sector peer group, below RSG (14.83), WCN (15.77), GFL (15.82), and CWST (16.36). The trailing P/E of 31.06× sits 4.2% below WM's own five-year average. The central tension: a 13.5% pullback from the 52-week high against a business generating $3.3B in annual FCF, with a $3B buyback and 22-year dividend growth streak, while the $7.5B Stericycle integration works through the income statement.

US Stock Pick: 3-Year ROE > 15%
US Stock Pick: 3-Year ROE > 15%2026. 06. 18. 21:19:24

CBOE — the options exchange monopoly at a 5-year P/E low, with a -31% drawdown and RSI 27

Cboe Global Markets (CBOE) is today's sole primary qualifier from a 6-candidate screen. ROE cleared 15% in every year — 20.44% / 18.51% / 23.36% (FY2023–FY2025), SEC XBRL cross-verified — while free cash flow surged from $1.03B to $2.72B TTM. The trailing P/E of 21.75× sits 32% below CBOE's five-year average and carries a 10.22% FCF yield — the highest in the exchange-operator peer group. The central tension: a -31% drawdown since June 2 when Kalshi/Coinbase received perpetual-futures approval, creating an oversold setup (RSI 27.6) in a franchise with a 50-year regulatory moat on SPX and VIX derivatives. Q2 2026 earnings (est. July 31) will show whether the selloff was justified.

US Stock Pick: 3-Year ROE > 15%
US Stock Pick: 3-Year ROE > 15%2026. 06. 17. 21:23:50

PAYX — the payroll compounder at a 5-year P/E low, with earnings in one week

Paychex (PAYX) is the sole qualifier from a 5-candidate screen. ROE held above 40% in each of FY2023–FY2025 (47.35% / 46.35% / 41.80%), free cash flow grew from $1.56B to $2.09B TTM, and the trailing P/E of 22.14× sits approximately 26% below PAYX's own five-year average of ~30×. The central tension: the Paycor acquisition created $5B in debt and brought organic growth to nearly zero in the near term, while Citi upgraded to Buy at $140 (+41% upside) on June 15 — two days before this article — citing the strongest bookings growth in over a decade as evidence of organic re-acceleration. The WISE agentic AI platform (launched May 2026) is the long-cycle growth story. The immediate catalyst is Q4 FY2026 earnings on June 24, where FY2027 guidance will either validate or challenge the re-acceleration thesis. The 4.31% dividend yield, backed by 74% FCF payout coverage, adds an income floor.