Growth stock

Screening Filters

1. Market Cap ≥ $5,000,000,000 & Market Cap Category: Large, Mid

   • Purpose: Focus on established mid- and large-cap growth companies.
   • Rationale:
     • The user is asking about “growth stocks” suitable for analysis or investment, which usually implies a preference for companies large enough to have:
       • More stable business models
       • Better liquidity (easier to buy/sell shares)
       • More analyst coverage and information
     • Setting a minimum $5B market cap and restricting to mid/large caps filters out tiny, highly speculative names and keeps the search to reasonably established growth businesses.

2. Sector: Technology, Consumer Cyclicals, Healthcare, Telecommunications Services

   • Purpose: Target sectors where growth stocks are most commonly found.
   • Rationale:
     • Technology and Telecom Services often contain companies benefiting from innovation, network effects, and digital transformation.
     • Consumer Cyclicals (e.g., e-commerce, discretionary retail, autos, travel) tend to grow quickly when the economy is doing well and can host many growth names.
     • Healthcare includes biotech, medical devices, and high-innovation areas with strong revenue and earnings expansion potential.
     • Limiting sectors this way makes the list more concentrated on typical growth-oriented industries, consistent with the user’s “growth stocks” request.

3. Region: United States

   • Purpose: Focus on U.S.-listed companies.
   • Rationale:
     • U.S. markets have high disclosure standards, strong liquidity, and wide analyst coverage—favorable for both analysis and investment.
     • It also simplifies comparability (same accounting standards and regulatory environment) and aligns with many investors’ primary market focus.

4. Listed Exchange: XNYS (NYSE), XNAS (Nasdaq), XASE (NYSE American/AMEX)

   • Purpose: Ensure stocks are listed on major U.S. exchanges.
   • Rationale:
     • Major exchanges typically require minimum financial, reporting, and governance standards, improving quality and transparency.
     • They also offer better liquidity versus OTC/pink-sheet stocks, which is important for practical investment.

5. Revenue 5-Year CAGR ≥ 15%

   • Purpose: Identify companies with strong, sustained top-line growth.
   • Rationale:
     • Growth investing is fundamentally about companies whose sales are expanding rapidly.
     • A 5-year compound annual growth rate (CAGR) of at least 15% is a robust threshold that ensures we’re catching companies with consistent, above-market revenue growth, not just a one-year spike.

6. EPS 5-Year CAGR ≥ 15%

   • Purpose: Ensure that earnings, not just revenue, are growing quickly over time.
   • Rationale:
     • Some firms can grow revenue but fail to convert that into profits.
     • By requiring earnings per share (EPS) growth ≥ 15% annually over 5 years, we focus on companies that are:
       • Scaling profitably
       • Improving margins and/or operating leverage
     • This better aligns with investment-grade growth stocks, not just high-revenue but unprofitable stories.

7. Analyst Consensus: Strong Buy, Moderate Buy

   • Purpose: Align with stocks that are currently favored by professional analysts.
   • Rationale:
     • The question asks for growth stocks “currently recommended for analysis or investment.”
     • Requiring Strong Buy or Moderate Buy ensures we only include companies where the aggregate analyst view is positive, indicating:
       • Reasonable valuation vs. growth prospects (in analysts’ models)
       • Fewer major red flags already known to the market
     • This doesn’t guarantee performance, but it tilts toward names with supportive institutional research.

Why Results Match Your Request

• The growth aspect is addressed by the revenue and EPS 5-year CAGR ≥ 15% filters, ensuring consistent and meaningful business expansion.
• The “recommended for analysis or investment” part is captured by:
  • The analyst consensus (Strong/Moderate Buy), which flags currently favored names.
  • The focus on U.S., major exchanges, and mid/large caps, improving liquidity, data quality, and overall investability.
• The sector and market cap filters refine the universe toward typical, scalable growth businesses rather than speculative micro-caps or slow-growth industries.

Overall, each filter narrows the universe from “all stocks” to a focused list of reasonably established U.S. growth companies that are currently viewed positively by analysts, matching your request for growth stocks worth analyzing or considering for investment.