The article highlights three stocks with return on equity above 30% and solid balance sheets: Exponent, Microsoft and Applied Materials. It notes that the same screen surfaced 22 other businesses that are not covered. Exponent, a science and engineering consultancy, generates about US$541 million from engineering and other scientific services, while Microsoft's Intelligent Cloud segment brings in around US$138b and Applied Materials' Semiconductor Systems about US$22.4b, with a market value of US$324.8b. The piece raises questions about rising costs, such as Microsoft's AI-related spending, and how they could affect future returns on shareholder capital.
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