From those 83, pick the best 8

How the Screening Filters Match Your Request

Your latest request:
“From the previously screened 83 US stocks, select the best 8 for a 5–10 year capital growth portfolio.”

Your core requirements are:

• US stocks
• Long-term horizon (5–10 years)
• Focus on capital growth (price appreciation), not income

The screener criteria are designed to surface established, profitable U.S. growth companies that are more likely to compound over a 5–10 year period.

Screening Filters

1. Market Cap ≥ $10,000,000,000 (Large Caps Only)

   • Purpose: Limit the universe to larger, more established companies.
   • Rationale:
     • For a 5–10 year capital growth portfolio, very small or speculative companies can be extremely volatile and risky.
     • A minimum market cap of $10B focuses on businesses that:
       • Have proven business models
       • Typically have better access to capital
       • Are more likely to survive full economic cycles
     • This aligns with seeking “best” US stocks for long-term growth rather than lottery-type small caps.

2. list_exchange: XNYS, XNAS (NYSE and NASDAQ)

   • Purpose: Include only major U.S. exchanges.
   • Rationale:
     • NYSE and NASDAQ host the most liquid, best-known U.S. companies.
     • Higher liquidity generally means:
       • Tighter bid/ask spreads
       • Easier entry/exit, especially important over many years as you rebalance
     • This is consistent with building a practical, investable long-term portfolio.

3. region: United States

   • Purpose: Restrict to U.S. companies.
   • Rationale:
     • Directly matches your request for US stocks.
     • Ensures the companies:
       • Report under U.S. standards
       • Are subject to U.S. regulation
       • Operate primarily within or from the U.S. market environment

4. Return on Equity (ROE) ≥ 15%

   • Purpose: Focus on high-quality, profitable businesses that generate strong returns on shareholder capital.
   • Rationale:
     • ROE measures how effectively a company uses shareholders’ equity to generate profit.
     • A threshold of 15% is relatively demanding and tends to:
       • Exclude low-quality, low-profitability businesses
       • Highlight companies with strong competitive advantages or efficient operations
     • Over 5–10 years, consistently high ROE supports compounding of earnings and, over time, stock price appreciation—exactly what you want in a capital growth portfolio.

5. Revenue 5-Year CAGR ≥ 10%

   • Purpose: Ensure top-line (sales) growth is robust over a multi-year period.
   • Rationale:
     • CAGR (Compound Annual Growth Rate) over 5 years smooths out short-term noise and focuses on sustained growth.
     • A minimum of 10% revenue CAGR over 5 years:
       • Filters for companies expanding their business meaningfully, not stagnating
       • Is consistent with “growth stock” characteristics rather than mature, low-growth companies
     • Strong, sustained revenue growth is a core driver of long-term capital appreciation over a 5–10 year horizon.

6. EPS 5-Year CAGR ≥ 10%

   • Purpose: Confirm that profits per share are also growing strongly, not just revenues.
   • Rationale:
     • Earnings per share (EPS) growth shows that:
       • The company is converting growth into profitability
       • Management is either improving margins, expanding scale, or managing capital structure effectively
     • Requiring ≥10% EPS CAGR over 5 years:
       • Filters for businesses that not only grow sales, but do so profitably
       • Aligns with the goal of long-term price appreciation, since over time stock prices tend to follow EPS growth, especially for quality companies.

Sorting and Selection Logic (How We Narrow Down to “Best”)

Although your question now is about picking the best 8 out of the 83, it’s useful to understand how the screener prioritized within that group:

• Primary sort: revenue_5yr_cagr (descending)

  • Prioritizes the fastest-growing companies by sales, which are more likely to deliver strong capital growth if the growth is sustainable.

• Secondary sort: eps_5yr_cagr (descending)

  • Among fast revenue growers, it favors those also growing profits quickly, reinforcing the focus on profitable growth, not just “growth at any cost.”

• Tertiary sort: market_cap (descending)

  • Among high-growth names, it tilts toward larger, more established players, balancing growth with stability and durability over a 5–10 year horizon.

This sorting approach helps to rank the 83 candidates by relevance to a long-term, quality growth mandate.

Why These Results Match Your Request

• You asked for: “best US stocks for 5–10 year capital growth portfolio.”
• The filters:
  • Limit to U.S. companies on major exchanges → directly matches “US stocks.”
  • Require large, established businesses (≥$10B) → reduces blow-up risk over 5–10 years.
  • Demand strong profitability (ROE ≥ 15%) → focuses on high-quality compounds of capital.
  • Enforce sustained growth in sales and earnings (≥10% 5-year CAGR) → central to long-term capital appreciation.

We are not using any indicators you explicitly asked for but don’t support—your request was conceptual (best long-term growth stocks), not tied to a specific metric the system can’t handle. The chosen filters are standard, robust ways professionals approximate “high-quality, long-term growth stocks,” so they are well aligned with your 5–10 year capital growth objective.