What is the definition of a high-growth stock on this screen?
This screen defines high-growth stocks as US-listed companies with $1B+ market capitalization, 25% or more trailing-twelve-month revenue growth, 20% or more TTM EPS growth, positive net income, and at least 5% FCF margin. The $1B market cap floor is the key requirement — at this scale, 25% revenue growth represents real absolute business expansion, not base-effect math on small prior revenue.
How is this screen different from 'fastest-growing-stocks'?
The 'fastest-growing-stocks' screen uses 30% revenue and EPS growth thresholds — selecting the extreme velocity tier of the market — with a $500M market cap floor. This screen uses 25% revenue and 20% EPS thresholds with a $1B+ floor, capturing a larger set of proven, scaled growth businesses that may not be at maximum velocity but have demonstrated sustained execution at greater scale. Think of it as quality growth vs. maximum-velocity growth.
How is this different from the general 'growth-stocks' screen?
The growth-stocks screen uses 20% revenue and 25% EPS thresholds with a $500M minimum market cap — a wider net that captures earlier-stage and smaller growth companies. This screen raises the market cap floor to $1B and lifts the revenue growth threshold to 25%, restricting results to companies that have proven their growth at greater scale and with more established business models.
Why set the minimum market cap at $1B instead of $500M?
The $1B floor changes the quality of what '25% revenue growth' means. A $500M company growing 25% added $125M in revenue — achievable through a strong product launch or a handful of enterprise deals. A $3B company growing 25% added $750M, requiring a multi-product strategy, multi-region execution, and deep customer retention. The $1B+ floor screens for companies where growth has been validated at the scale that institutional investors, competitive analysts, and customers can all observe and verify.
Do high-growth stocks pay dividends?
Rarely. Companies growing revenue at 25%+ typically reinvest all available capital into sales, R&D, talent, and market expansion. Initiating a dividend signals that investment opportunities have been exhausted — the opposite signal to what defines high growth. The Total Return 1Y column on this screen reflects price appreciation only. If dividend income is also a goal, pairing this screen with one of the dividend screens builds the income component separately from the growth component.
What sectors appear most often in this high-growth stocks list?
Technology, Healthcare (particularly software-enabled health systems, medical devices, and pharma), and Communication Services dominate in most market cycles. AI infrastructure, cloud platforms, health technology, and select fintech and cybersecurity names appear frequently. Financial Services and Real Estate are excluded by design — their revenue is driven by rate cycles, not business fundamentals.
How do you value a stock growing 25%+ per year?
P/E alone is misleading for high-growth stocks because it captures only current earnings, not the compounding trajectory. The PEG ratio (P/E divided by EPS growth rate) normalizes valuation for growth pace: PEG under 1.0 is traditionally cheap; 1.0–1.5 is fair; above 2.0 means the market is pricing in acceleration or a very long growth runway. The screen's column layout shows both P/E and PEG so you can apply both lenses simultaneously.
Is 25% revenue growth sustainable for more than a few years?
Rare, but it happens at scale: Nvidia, Salesforce, and ServiceNow each sustained 20–30%+ revenue growth for a decade or more. The key signal is the total addressable market relative to current revenue — companies capturing less than 10% of a massive, expanding market have more runway than those already at 30–40% market penetration. The 3-year revenue growth column (column 5 in this screen) is an early signal: when TTM growth begins to converge with the 3Y baseline, deceleration may be approaching.
How often does the high-growth stocks list change?
TTM growth figures are recalculated when each company files a new quarterly earnings report, so the list rotates meaningfully around earnings seasons — typically four concentrated windows per year. Between seasons, the rankings shift primarily based on market cap changes from price movements. Companies that report strong earnings often move up the list; those with weak quarters drop off or fall below the 25% revenue growth threshold.
How many high-growth stocks should I own?
For a dedicated growth sleeve within a diversified portfolio, 10–20 names is a practical range. Fewer than 8 creates significant single-company execution risk — one bad quarter from a concentrated position becomes a portfolio-level event. More than 25 typically includes lower-conviction positions that dilute the return contribution of your best ideas. Within this range, position sizes of 5–8% for highest-conviction names and 2–4% for developing convictions provides appropriate exposure without creating catastrophic single-stock risk.
