What stock has a high profit potential

Screening Filters & Rationale

1. Dividend Yield (TTM) ≥ 1%:

   • Purpose: To ensure the stock provides a minimum level of income through dividends.
   • Rationale: A positive dividend yield indicates the company shares profits with investors, adding to total returns.

2. Net Margin ≥ 10%:

   • Purpose: To focus on companies with strong profitability.
   • Rationale: Higher net margins indicate efficient cost management and robust earnings potential.

3. Revenue 5-Year CAGR ≥ 15%:

   • Purpose: To identify companies with consistent and strong revenue growth.
   • Rationale: Sustained revenue growth often signals a competitive advantage and market demand.

4. EPS 5-Year CAGR ≥ 15%:

   • Purpose: To target companies with growing earnings over time.
   • Rationale: Consistent EPS growth reflects improving profitability and shareholder value.

5. P/E (TTM) ≤ 25:

   • Purpose: To ensure the stock is reasonably valued relative to its earnings.
   • Rationale: A lower P/E ratio suggests the stock may be undervalued, offering higher profit potential.

6. Return on Equity (ROE) ≥ 15%:

   • Purpose: To select companies with efficient use of shareholder equity.
   • Rationale: High ROE indicates strong financial performance and effective management.

7. Annual EPS YoY Growth ≥ 20%:

   • Purpose: To focus on companies with significant recent earnings growth.
   • Rationale: Rapid EPS growth can signal strong business momentum and future profitability.