2 great growth stocks

Screening Filters

1. Market Cap ≥ $5,000,000,000

   • Purpose: Focus on larger, more established growth companies.
   • Rationale:
     • The user asked for “great” growth stocks, which typically implies a balance of strong growth and some level of stability/quality.
     • A $5B+ market cap threshold avoids tiny or speculative names, and keeps the results to mid/large caps that are more likely to have proven business models, better liquidity, and institutional coverage.

2. Region: United States

   • Purpose: Limit to U.S.-listed companies.
   • Rationale:
     • U.S. stocks tend to have more transparent reporting, consistent regulations, and broader analyst coverage, all helpful when trying to identify “great” growth names.
     • It also avoids complications from differing accounting standards and less accessible information.

3. Exchange: NYSE (XNYS), Nasdaq (XNAS), NYSE American (XASE)

   • Purpose: Filter to major U.S. exchanges.
   • Rationale:
     • These are the primary exchanges for reputable U.S. companies.
     • They have stricter listing requirements than OTC markets, helping to avoid illiquid or lower-quality securities when searching for high‑quality growth stocks.

4. Revenue 5-Year CAGR ≥ 15%

   • Purpose: Identify companies with strong, sustained top-line growth.
   • Rationale:
     • “Growth stocks” are defined primarily by consistently growing sales at above-market rates.
     • A 15%+ compound annual growth rate over 5 years is a robust threshold that screens for companies with proven, long-term business expansion rather than one-off spikes.

5. EPS 5-Year CAGR ≥ 15%

   • Purpose: Ensure earnings are growing strongly along with revenue.
   • Rationale:
     • Great growth stocks not only increase sales but also translate that into rising profitability.
     • Requiring 15%+ EPS growth over 5 years filters out companies that grow revenue but are chronically unprofitable or unable to scale earnings.

6. P/E (TTM) between 10 and 60

   • Purpose: Focus on reasonably valued growth stocks while avoiding extremes.
   • Rationale:
     • Growth stocks often trade at higher P/E ratios, so the upper bound of 60 leaves room for “growth premiums” while excluding the most extreme, potentially bubble-like valuations.
     • The lower bound of 10 helps remove distressed or unusually cheap names that may be “value” or turnaround stories rather than stable growth plays.

7. Analyst Consensus: Strong Buy or Moderate Buy

   • Purpose: Incorporate professional analyst sentiment as a quality check.
   • Rationale:
     • “Great” often implies broader market and expert confidence in the company’s prospects.
     • Limiting to Strong Buy / Moderate Buy focuses on stocks where the analyst community, which examines fundamentals in depth, sees solid upside or strong fundamentals, adding another layer of quality control.

Why Results Match “2 Great Growth Stocks”

• The growth aspect is directly addressed by the 5-year revenue and EPS CAGR filters (both ≥ 15%), ensuring long-term, above-average growth in both sales and earnings.
• The “great” quality component is supported by:
  • The market cap filter (larger, more established names).
  • Limiting to major U.S. exchanges and the U.S. region for better governance, liquidity, and disclosure.
  • P/E bounds to avoid both distressed and extremely speculative valuations.
  • Positive analyst consensus (Strong/Moderate Buy), indicating institutional confidence.

Together, these filters are designed to surface a small set of established, fast-growing, reasonably valued U.S. companies that professionals currently view favorably—aligning well with the idea of “great growth stocks.”