Stock long term investment

Screening Filters & Rationale

1. Market Cap ≥ $10 billion:

   • Purpose: Focus on large-cap companies for stability and lower risk.
   • Rationale: Large-cap stocks are typically more established and resilient, making them suitable for long-term investments.

2. Revenue 5-Year CAGR ≥ 8%:

   • Purpose: Identify companies with consistent revenue growth over time.
   • Rationale: Sustained revenue growth indicates strong business performance and market demand.

3. EPS 5-Year CAGR ≥ 8%:

   • Purpose: Target companies with growing profitability.
   • Rationale: Increasing earnings per share reflects efficient operations and shareholder value creation.

4. Debt-to-Equity ≤ 1.5:

   • Purpose: Ensure financial stability by limiting excessive leverage.
   • Rationale: A manageable debt level reduces financial risk and supports long-term sustainability.

5. Return on Equity ≥ 12%:

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