Quality Growth Spell
Fast Growing, Cash Producing Companies
In this spell, we take all non-financial and utility stocks with an over $500 million market cap and both a 3 Year Average Revenue Growth Rate AND Cash Return on Capital figure in the top 20% of the market. This group of stocks are then ranked by those growth and cash return figures, and the top 50 are shown here.
Successful long term (3+ year) investments are made with the stocks of growing companies with sustainable competitive advantages. Revenue growth is the truest measure of how fast a company is growing, and cash return on capital helps to identify companies with strong competitive advantages. We use cash instead of earnings here as many growth-stage firms utilize stock-based compensation which skew earnings, sometimes dramatically. As always, members can modify it to your liking using the Spell Caster tool!