What are the top 10 growth stocks?

Screening Filters

1. Revenue 5-Year CAGR (Compound Annual Growth Rate) ≥ 20%:

   • Purpose: To identify companies with strong and consistent revenue growth over the past five years.
   • Rationale: Revenue growth is a key indicator of a company's ability to expand its market share, attract customers, and grow its business. A minimum threshold of 20% ensures that only companies with significant growth potential are included.

2. EPS (Earnings Per Share) 5-Year CAGR ≥ 15%:

   • Purpose: To focus on companies with consistent earnings growth over the past five years.
   • Rationale: EPS growth reflects a company's profitability and efficiency in generating earnings for shareholders. A 15% minimum ensures that the selected companies are not only growing their revenues but also translating that growth into higher profits.

3. Quarterly Revenue YoY (Year-over-Year) Growth ≥ 25%:

   • Purpose: To capture companies with strong recent revenue growth momentum.
   • Rationale: This filter ensures that the company is not only growing over the long term but also maintaining or accelerating its growth in the most recent quarter. A 25% threshold highlights companies with exceptional short-term performance.

4. Quarterly EPS YoY Growth ≥ 20%:

   • Purpose: To identify companies with strong recent earnings growth.
   • Rationale: Similar to the revenue growth filter, this ensures that the company is maintaining or improving its profitability in the most recent quarter. A 20% threshold indicates robust earnings performance.

5. Free Cash Flow (FCF) 5-Year CAGR ≥ 10%:

   • Purpose: To ensure the company is generating increasing amounts of free cash flow over time.
   • Rationale: Free cash flow is a critical metric for assessing a company's financial health and its ability to reinvest in growth, pay dividends, or reduce debt. A 10% minimum ensures that the company is not only growing its earnings but also generating real cash to support its operations and growth.

Why Results Match:

• The selected filters collectively focus on identifying companies with strong growth characteristics across multiple dimensions: revenue, earnings, and cash flow. This ensures a comprehensive evaluation of growth potential.
• By setting minimum thresholds for both long-term (5-year CAGR) and short-term (quarterly YoY) growth metrics, the screener captures companies that are consistently growing over time while also demonstrating recent momentum.
• The combination of revenue, EPS, and free cash flow growth ensures that the selected companies are not only expanding their top line but also improving profitability and generating cash, which are hallmarks of high-quality growth stocks.
• These filters align well with the user's request for "top 10 growth stocks" by narrowing the search to companies with a proven track record of strong and sustained growth.