Stocks predicted to do well in 2028

Important Context

No screen can guarantee which stocks will “perform well” in 2028. Markets are uncertain, and any prediction involves risk.
What these filters do is tilt the search toward larger, profitable, and consistently growing companies that statistically have a better chance of performing well over a multi‑year horizon.

Screening Filters

1. Market Cap ≥ $10,000,000,000 (≥ $10B)

   • Purpose: Focus on larger, more established companies.
   • Rationale:
     • Large-cap firms usually have more stable earnings, diversified revenue, and better access to capital.
     • They’re less likely to be wiped out by a single shock and often have more predictable business models—helpful when you’re thinking about performance as far out as 2028.
     • This filter reduces highly speculative, tiny companies whose outcomes are much harder to forecast.

2. Return on Equity (ROE) ≥ 15%

   • Purpose: Select companies that use shareholders’ capital efficiently and profitably.
   • Rationale:
     • ROE measures how effectively a company turns shareholder equity into profit.
     • A sustained ROE above ~15% typically signals durable competitive advantages, strong management, and good capital allocation.
     • Over multiple years, high-ROE businesses have historically compounded shareholder value more effectively, which supports the idea of strong performance by 2028.

3. Revenue 5‑Year CAGR ≥ 10%

   • Purpose: Focus on businesses with solid, consistent top-line (sales) growth.
   • Rationale:
     • Revenue growth shows that demand for the company’s products/services is rising.
     • A 10%+ compound annual growth rate over five years suggests this isn’t a one-off spike; the business has momentum.
     • Companies growing sales at this pace are more likely to keep expanding earnings and market share into 2028, a key driver of future stock performance.

4. EPS 5‑Year CAGR ≥ 15%

   • Purpose: Ensure not just sales growth, but strong growth in per-share profits.
   • Rationale:
     • EPS (earnings per share) growth directly supports rising stock prices over time.
     • A 15%+ 5‑year compound growth rate indicates that profits are compounding quickly—either through higher margins, scale, or efficient share buybacks.
     • Stocks with sustained EPS growth often do well over multi-year periods, since valuation multiples tend to follow earnings.

5. P/E (TTM) between 10 and 35

   • Purpose: Filter out both extremely cheap (potentially troubled) and extremely expensive (overhyped) stocks.
   • Rationale:
     • Lower bound (≥10): Very low P/E’s can indicate structural problems or declining businesses, which may not be good long-term bets for 2028.
     • Upper bound (≤35): Extremely high P/E’s can price in overly optimistic expectations, increasing the risk of disappointment and multiple compression, even if the business is good.
     • Keeping P/E in a moderate band aims to balance quality/growth with a valuation that isn’t excessively speculative.

Why the Results Match Your 2028-Focused Question

• Stability plus growth:
  Large-cap + high ROE + multi-year revenue and EPS growth focuses on established companies with a demonstrated ability to grow and generate strong returns on capital.

• Forward-looking but grounded:
  Using 5‑year growth metrics looks at sustained performance, not just a good quarter or year, increasing the probability (not guaranteeing) that these trends can continue toward 2028.

• Risk/valuation control:
  The P/E band avoids the extremes: it screens out some of the riskiest “value traps” and some of the most speculative “story stocks,” both of which could derail long-term performance.

Together, these filters try to identify companies with a proven record of profitable growth, reasonable valuations, and scale—all characteristics that historically have been associated with a higher likelihood of performing well over a multi-year horizon such as 2028.