Best small cap growth stocks

Screening Filters

1. Market Capitalization (market_cap: max $2,000,000,000):

   • Purpose: To identify small-cap stocks.
   • Rationale: Small-cap stocks are typically defined as companies with a market capitalization below $2 billion. By setting the maximum market cap at $2 billion, this filter ensures that only small-cap companies are included in the results, aligning with the user's request for "small cap" stocks.

2. Revenue 5-Year Compound Annual Growth Rate (revenue_5yr_cagr: min 15%):

   • Purpose: To focus on companies with strong historical revenue growth.
   • Rationale: Growth stocks are characterized by their ability to grow revenues at a rapid pace. By setting a minimum 5-year revenue CAGR of 15%, this filter ensures that only companies with a proven track record of significant revenue growth are considered, which is a key characteristic of growth stocks.

3. Earnings Per Share (EPS) 5-Year Compound Annual Growth Rate (eps_5yr_cagr: min 15%):

   • Purpose: To identify companies with consistent earnings growth over the past five years.
   • Rationale: Growth stocks not only exhibit strong revenue growth but also demonstrate the ability to translate that growth into earnings. By requiring a minimum 5-year EPS CAGR of 15%, this filter ensures that the selected companies are not only growing their top line but also improving profitability, which is essential for sustainable growth.

Why Results Match:

• The market capitalization filter ensures that only small-cap companies are included, directly addressing the "small cap" part of the user's query.
• The revenue growth filter and EPS growth filter together ensure that the selected companies exhibit strong growth characteristics, aligning with the "growth stocks" aspect of the user's request.
• By combining these filters, the screener identifies small-cap companies with a strong historical track record of both revenue and earnings growth, which are key indicators of potential future growth. This makes the results highly relevant to the user's query for "best small cap growth stocks."