High returns

Screening Filters

1. Market Cap ≥ $5B (market_cap: {'min': '5000000000'})

   • Purpose: Focus on larger, more established companies when looking for historically strong performers.
   • Rationale:
     • Large-cap stocks tend to have longer operating histories and more stable business models, so we can better evaluate whether their past performance is durable rather than a short‑term spike.
     • When thinking about “strategies that have historically shown high returns,” a common, evidence‑based approach is to look at quality growth companies rather than speculative micro‑caps. This filter steers us toward that group.

2. Major US Exchanges Only (list_exchange: ['XNYS', 'XNAS', 'XASE'])

   • Purpose: Limit results to well‑regulated, highly liquid markets (NYSE, NASDAQ, NYSE American).
   • Rationale:
     • High‑return strategies that are actually implementable typically rely on instruments that trade with good liquidity and strong disclosure standards.
     • These exchanges require more rigorous reporting, making metrics like ROE and earnings growth more reliable. That’s essential when you’re using fundamentals as the backbone of a “high return” equity strategy.

3. Return on Equity ≥ 18% (return_on_equity: {'min': '18'})

   • Purpose: Target companies that generate high profitability relative to shareholders’ equity.
   • Rationale:
     • High ROE is a classic “quality” factor. Historically, portfolios tilted toward high‑ROE companies have often produced superior risk‑adjusted returns compared to the broad market.
     • A consistently high ROE usually signals a durable competitive advantage (pricing power, brand strength, cost advantage) which can support long‑term compounding—key for high‑return equity strategies.

4. Annual EPS YoY Growth ≥ 20% (annual_eps_yoy_growth: {'min': '20'})

   • Purpose: Emphasize companies delivering fast growth in earnings per share.
   • Rationale:
     • Many historically strong return profiles come from companies that can grow earnings rapidly over multiple years.
     • A 20%+ EPS growth rate is a relatively high bar that filters for firms whose underlying business performance is improving quickly—essential for growth‑oriented, high‑return strategies as opposed to just “cheap” stocks.

5. Revenue 5‑Year CAGR ≥ 15% (revenue_5yr_cagr: {'min': '15'})

   • Purpose: Ensure that growth is supported by real, sustained expansion in sales, not only by cost‑cutting or accounting effects.
   • Rationale:
     • Historic big winners in equity markets often show a combination of strong top‑line (revenue) and bottom‑line (EPS) growth over many years.
     • A 5‑year revenue CAGR filter focuses on long‑term business momentum rather than one‑off spikes, aligning with strategies that seek durable, compounding returns.

Why Results Match the User’s Request

• The question is about financial instruments or strategies that have historically shown high returns. One well‑documented equity strategy is to focus on profitable, high‑growth companies (“quality growth” or “growth at a reasonable price” variants).
• Collectively, the filters:
  • Restrict to established, liquid US‑listed stocks (implementable and transparent).
  • Demand high profitability (ROE ≥ 18%), a key quality factor tied to strong historical performance.
  • Require rapid earnings growth (EPS YoY ≥ 20%) and sustained revenue growth (5‑year CAGR ≥ 15%), both common characteristics of past long‑term stock market winners.

So while no filter set can guarantee future high returns, these criteria are aligned with a historically successful equity strategy type: investing in high‑quality, fast‑growing businesses that have tended to generate strong long‑term shareholder returns.