Growth stock

Screening Filters & Rationale

1. Market Cap (min: $1B, max: $50B):

   • Purpose: Focus on mid-cap companies with significant growth potential.
   • Rationale: These companies are typically more established than small caps but still have room for expansion.

2. Revenue 5-Year CAGR (min: 20%):

   • Purpose: Identify companies with strong and consistent revenue growth.
   • Rationale: High revenue growth is a key indicator of a company's ability to scale and capture market share.

3. EPS 5-Year CAGR (min: 20%):

   • Purpose: Target companies with robust earnings growth over time.
   • Rationale: Sustained EPS growth reflects profitability improvements and operational efficiency.

4. Weekly Average Turnover (min: $1M):

   • Purpose: Ensure sufficient liquidity for ease of trading.
   • Rationale: High turnover indicates active investor interest and reduces the risk of illiquidity.

5. P/E TTM (min: 10, max: 40):

   • Purpose: Select stocks with reasonable valuations relative to their earnings.
   • Rationale: This range avoids overvalued stocks while excluding potentially undervalued companies with poor growth prospects.

6. Return on Equity (min: 15%):

   • Purpose: Focus on companies generating strong returns on shareholder equity.
   • Rationale: High ROE indicates efficient use of capital to generate profits.