What Makes a Stock a High Growth Stocks constituent?
This screen identifies high-growth companies with at least $1B in market cap, filtering for 25%+ revenue growth and 5%+ free cash flow margins. By excluding low-margin sectors and ADRs, it isolates scalable winners like NVIDIA, which maintained massive growth while scaling its market cap past $1T in 2023.
Filter for Proven Scale
We require a $1B+ market cap to avoid micro-cap volatility. For example, CrowdStrike's growth was validated at scale, unlike speculative biotech firms that often collapse after a single failed trial.
Verify Margin Quality
We demand 40%+ gross margins to ensure pricing power. Companies like Adobe maintain high margins because their software is essential, unlike low-margin retailers like Bed Bath & Beyond, which filed for bankruptcy in 2023.
Check Cash Self-Sufficiency
The 5% FCF margin filter ensures companies don't rely on constant dilution. In 2022, high-growth firms without cash flow, like Peloton, saw their stock prices crater as capital costs spiked.
