Stocks expected to do well in 2028

First, a quick clarification

No screener can reliably find “stocks that will perform well in 2028” with certainty—future returns are inherently uncertain. What we can do is tilt the search toward companies that, based on current fundamentals and historical performance, have a stronger probability of doing well over a multi‑year horizon (like into 2028).

The filters your colleague chose are geared exactly toward that: quality, growth, and financial stability.

Screening Filters

1. Market Cap ≥ $10,000,000,000 (Large-cap stocks)

   • Purpose: Focus on larger, more established companies.
   • Rationale:
     • Large caps typically have more stable business models, diversified revenue streams, and better access to capital.
     • They are more likely to sustain performance through to 2028 versus very small, speculative names that can be more volatile or fail outright.
     • For a multi‑year outlook, this mitigates the risk that the company won’t even be a meaningful player by 2028.

2. Return on Equity (ROE) ≥ 15%

   • Purpose: Select companies that generate high profitability relative to shareholders’ equity.
   • Rationale:
     • ROE is a key measure of how efficiently a company uses investor capital to generate profits.
     • A threshold of 15% is relatively high, pointing to businesses with competitive advantages (strong brands, cost advantages, network effects, etc.).
     • Over several years, high and sustained ROE is often associated with companies that compound shareholder value, which is exactly what you want going into 2028.

3. Debt-to-Equity (D/E) ≤ 1

   • Purpose: Avoid companies that are over-leveraged and therefore more vulnerable to downturns or rising interest rates.
   • Rationale:
     • A D/E ratio ≤ 1 means the company’s debt does not exceed its equity, indicating a more balanced or conservative capital structure.
     • Companies with moderate or low debt are better positioned to navigate economic shocks between now and 2028 without distress or dilutive equity raises.
     • This improves the chances that growth and earnings can translate into shareholder returns rather than being eaten up by interest costs or restructuring.

4. Revenue 5-Year CAGR ≥ 10%

   • Purpose: Screen for companies with solid historical top-line (sales) growth.
   • Rationale:
     • A 5-year compound annual growth rate (CAGR) of at least 10% shows that the business is expanding meaningfully, not just stagnating.
     • Sustained revenue growth indicates the company is either gaining market share, benefiting from secular trends, or successfully expanding into new products/markets.
     • For performance out to 2028, you generally want businesses that have demonstrated an ability to grow, not just theoretical growth stories.

5. EPS 5-Year CAGR ≥ 12%

   • Purpose: Target companies whose earnings per share have been growing at a strong rate.
   • Rationale:
     • EPS growth captures not just revenue growth, but also margin improvement, cost control, share buybacks, and overall profitability.
     • A 12%+ EPS CAGR over 5 years signals that the company isn’t just selling more, but is also translating that into rising profits for each share.
     • Over the long term, stock prices tend to follow earnings growth, so strong historical EPS growth raises the probability of good performance going forward (though never guarantees it).

Why These Results Match Your 2028-Oriented Question

• Long-term quality bias:
  High ROE and consistent EPS growth point to businesses that have already proven they can compound value, which is important when your horizon is several years (e.g., to 2028).

• Growth plus durability:
  Combining revenue and EPS growth filters ensures you’re not just getting “cheap” or “mature no-growth” stocks. You’re getting companies that are still expanding and likely to benefit from secular trends over multiple years.

• Risk control:
  The debt-to-equity cap helps avoid names that could unravel in a recession or higher-rate environment between now and 2028, reducing the chance of permanent capital loss.

• Stability and scale:
  The large-cap filter tilts the universe toward more established companies that are better equipped to handle competitive and macroeconomic shocks over a longer horizon.

Taken together, these filters don’t predict 2028 performance, but they systematically focus your search on profitable, growing, and financially sound large companies—exactly the profile that has a higher probability of performing well over a multi-year period.