Show top 15 stocks for 5-10 years

Screening Filters

1. Market Cap ≥ $50B & Category: Mega / Large

   • Purpose: Focus on financially stronger, established U.S. companies.
   • Rationale: For a 5–10 year horizon, investors typically want businesses with:
     • Proven business models
     • Better access to capital
     • Greater resilience in downturns
       Large and mega-cap stocks (≥ ~$50B) are usually industry leaders with more stable earnings, competitive advantages, and lower probability of permanent capital loss than small, unproven companies.

2. Listed on XNYS, XNAS, XASE (NYSE, NASDAQ, AMEX)

   • Purpose: Ensure liquidity, transparency, and regulatory oversight.
   • Rationale: Major U.S. exchanges have:
     • Stricter listing requirements (financials, governance, disclosures)
     • Higher trading volumes (easier to enter/exit positions)
       For a multi-year investment, you want companies that are well-regulated and widely followed, reducing some operational and liquidity risks.

3. Region: United States

   • Purpose: Restrict the universe to U.S.-domiciled companies.
   • Rationale: The user explicitly asked for U.S. stocks. This also:
     • Aligns with U.S. accounting standards and disclosure norms
     • Reduces additional layers of political/currency risk versus foreign listings
       This makes analysis and long-term forecasting more straightforward for a U.S.-focused investor.

4. Return on Equity (ROE) ≥ 15%

   • Purpose: Target companies that generate high profitability on shareholder capital.
   • Rationale: Over 5–10 years, wealth creation is driven by:
     • How efficiently a company converts equity into profits
       ROE ≥ 15% is a strong profitability threshold, helping filter out mediocre or capital-destructive businesses. Consistently high ROE often signals competitive advantages (brand, scale, network effects, etc.) that can endure over long periods.

5. EPS 5-Year CAGR ≥ 12%

   • Purpose: Focus on companies with solid historical earnings growth.
   • Rationale: Long-term stock returns tend to follow earnings growth. A 5-year EPS compound annual growth rate (CAGR) ≥ 12%:
     • Indicates the business has been expanding profits at an attractive rate
     • Suggests underlying drivers (revenue growth, margin expansion, buybacks) that can continue compounding over a 5–10 year horizon
       While the past doesn’t guarantee the future, strong, sustained EPS growth is a key marker for long-term compounding candidates.

6. P/E (TTM) between 12 and 30

   • Purpose: Avoid both extremely cheap (often troubled) and extremely expensive (potentially overhyped) valuations.
   • Rationale: For long-term investing, you want:
     • Reasonable valuations to reduce downside risk
     • But also be willing to pay fair prices for quality and growth
     • Lower bound (12): Screens out ultra-low P/Es that may reflect structural problems, cyclical peaks, or one-off earnings distortions rather than real bargains.
     • Upper bound (30): Avoids the highest-multiple names where expectations may be so optimistic that even good execution can disappoint over time.

Why Results Match a 5–10 Year Investment Horizon

• The size and exchange filters emphasize stability, liquidity, and regulatory quality—key when holding for many years.
• The ROE and EPS growth filters focus on businesses that historically compound capital effectively, which is central to long-term returns.
• The valuation filter aims to balance quality/growth with price discipline, improving the odds that returns over 5–10 years come from both earnings growth and a sustainable valuation, rather than speculative multiple expansion.

Together, these filters don’t guarantee outcomes but they narrow the universe to established, growing, and reasonably valued U.S. companies that are more suitable as candidates for a 5–10 year investment strategy.