With central banks weighing rate moves, energy prices swinging on geopolitical headlines and trade flows reshaping across regions, many investors are looking for companies that can simply stand on their own two feet. Solid balance sheets, high return on equity and resilient past performance can help a stock absorb shocks from inflation, currency moves or slower demand. This is exactly what the Solid Balance Sheet and Fundamentals screener is built to highlight. In this article, you will see 3 stocks from this universe that show how quality fundamentals can anchor a long term portfolio through changing macro conditions.

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Reddit (RDDT)

Overview: Reddit operates a global digital discussion platform where users gather in interest based communities to share experiences, ask questions, trade goods and services, and contribute text, images and video, creating a large crowdsourced information and entertainment hub.

Operations: Reddit generates US$2.47b in revenue from its Internet Information Providers segment, with around US$2.00b from the United States and US$476.29m from the rest of the world.

Market Cap: US$32.94b

Reddit brings together a large base of highly engaged daily users and is turning that engagement into money through advertising and data licensing, which has supported revenue and earnings growth and a return on equity of 22.3%. The stock trades on a P/E of 48.5x. Some models flag it as below estimated fair value, which is why many investors pay close attention to its valuation. Earnings margins have expanded and analysts highlight AI powered ad tools and licensing deals with groups like Alphabet and OpenAI as important growth drivers. On the other hand, there is reliance on higher risk external funding and rising competition from Meta’s Forum app, which investors may weigh carefully against the potential upside.

Reddit’s 22.3% return on equity and data licensing story are getting plenty of attention, but the real tension is how that P/E of 48.5x stacks up against its growth path in the analyst forecasts for Reddit.

Argan (AGX)

Overview: Argan is an engineering and construction company that designs, builds, and maintains large power plants, industrial facilities, and communication networks in the US, UK, and Ireland. It handles everything from project development and procurement to commissioning and technical consulting.

Operations: Argan generates about US$822.81m from its Power segment, US$196.67m from industrial work, and US$22.42m from Teledata services.

Market Cap: US$8.69b

Argan sits at the center of rising electricity demand tied to AI data centers and electrification, with a record project backlog near US$2.9b and recent Q1 FY2027 sales of US$290.95m, backed by a 50% year on year jump in revenue and higher gross margins. A net profit margin of 15.5%, strong return on equity of 34.1%, and US$974m in cash with no debt give it room to fund growth, raise dividends, and buy back stock, even as the P/E of 53.4x signals high expectations. The catch is heavy exposure to large natural gas projects and lumpy margins, so investors watching Argan may want to assess whether its gas-weighted pipeline and project execution are sufficient to support that valuation premium.

Argan’s cash rich balance sheet, 34.1% return on equity and P/E of 53.4x hint at a story that goes beyond a US$2.9b backlog. However, the real twist sits inside the 2 key rewards and 2 important warning signs

Duolingo (DUOL)

Overview: Duolingo runs a mobile learning platform best known for its language app, offering around 250 courses plus a digital English proficiency exam used by universities and employers, with users learning via short gamified lessons on phones and tablets.

Operations: Duolingo generates about US$1.10b from educational software, reflecting its focus on app based learning products.

Market Cap: US$5.50b

Duolingo operates at the intersection of global education and AI, pairing a large, highly engaged user base with a balance sheet and earnings that are described as high quality, while the stock is reported to trade at a sizable discount to estimated fair value and a P/E below its Consumer Services peers. Earnings growth has been described as very strong in recent years and margins as wide. However, the market is cautious about forecasts that point to earnings declining over the next few years and about AI tools that could compete with app based learning. For investors, one key question is whether user growth, AI powered features and new subjects such as math and music can offset potential earnings pressure and any funding risk tied to reliance on external borrowing.

Duolingo’s mix of AI driven courses, new subjects and a reported discount to estimated fair value suggests something in the growth story is not fully priced in yet, and the analyst forecasts for Duolingo hint at what the market might be missing.

You have only seen a small sample here. The full Solid Balance Sheet and Fundamentals screener has surfaced 43 more companies with similar return on equity, balance sheet strength and performance stories waiting to be unpacked in the Solid Balance Sheet and Fundamentals screener. Use Simply Wall St to identify and analyze the specific catalysts, quality markers and narratives that matter most so you can focus on the highest conviction ideas for your watchlist.

Take Control of Your Investment Journey

If Argan or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.