High Growth Stocks Screener

High growth stocks have a tendency to go much higher than many people expect. Better still, high growth stocks tend to also outperform the market. This growth stocks screen has two parts, one for traders, and the other for investors. The best thing is both parts are quick and simple.

High Growth Stocks Screen For Traders.

As Traders usually have a shorter holding period and trade more frequently, the first part of the stock screen will produce a higher number of candidates. This will be greatly reduced in the second part for Investors.

Growth stocks have higher earnings than average performing stocks. This is also reflected in their EPS ratio or Earnings per Share. However, EPS can be manipulated, for example by stock buy-backs. To avoid this, we include sales growth in the screen, to ensure the growth is based on business performance, and not manipulation of EPS. (Some stock screeners may use the term revenue rather than sales, but both are the same thing.)

Clicking on the images below will enlarge them.

High Growth Stocks Screener for Traders. Fundamentals
High Growth Stocks Screen for Traders.        Source Finviz.com
High Growth Stocks Screener for Traders 2
High Growth Stocks Screen for Traders (cont’d).        Source Finviz.com

Following the numbering in the screen images above, we have screened for:

1) EPS growth. This consists of four parts.
a) EPS growth this year = over 20%.

b) EPS growth quarter over quarter = over 20%.
c) Sales growth quarter over quarter = over 20%.
d) EPS growth next year (forecast) = over 20%

2) Institutional Ownership = over 30%.
3) Analyst Recommendations = Buy or better.
4) Price = over $15

This screen has reduced the number of stocks from over 7,000 to 53. This will be reduced further to just 16 in the next part for investors. But this is a good place to start for traders. There are more than enough stocks to keep traders busy.

Institutional ownership shows these high growth stocks are not only on the radar of institutions, but they like them enough to put their money behind them. This is such a great filter to have, because we are taking advantage of the knowledge and research resources of Institutional Traders. Secondly, we need Institutional money to move the stock price.

I like to keep the institutional ownership to 30%, as by the time the ownership is higher, so is the stock price.

The ‘Analyst Recommendations’ filter is just an easy way to reduce the number of stocks, by weeding out the weaker stocks. Whilst I don’t blindly trust their opinion, they do the hard work of number crunching, which saves us time.

Best High Growth Stocks For Traders Screen
Best High Growth Stocks. Traders Screen Results.        Source Finviz.com

The image above shows the performance of the top 20 results from the 53 found by the ‘high growth stock screen for traders’. The screen was performed on Friday Jan 12th 2018.

The results are filtered on Performance for the Year’ (2017) highlighted in yellow. The top 20 returned anything from 66% to 214% for 2017.

The next column, Perf YTD(2018) highlighted in green, is the performance for the current year to date Friday Jan 12th 2018.

(Note: this is NOT a recommendation to trade, but for educational purposes only.)

We have to be mindful of the fact that 2017 was a great year for growth stocks. That may not continue into 2018.

High Growth Stocks Screen For Investors.

Investors have a longer-term outlook compared to traders, and also usually require more ‘checks and balances’ than traders do. So for investors the following additional criteria can be added.

High Growth Stocks Screen for Investors
High Growth Stocks Screen for Investors.        Source Finviz.com

Following the numbering in the screen image above, we have screened for:

1) EPS growth. This consists of four parts:
a) EPS growth this year = over 20%.

b) EPS growth quarter over quarter = over 20%.
c) Sales growth quarter over quarter = over 20%.
d) EPS growth next year (forecast) = over 20%

2) Institutional Ownership = over 30%.
3) EPS growth past 5 years = over 15%
4) Sales growth past 5 years = over 15%
5) EPS growth next 5 years. (Some investors use this. But I don’t believe in long-term forecasts. If you want to use this, use a rate over 20% as we are looking for high growth.)

(‘Analyst recommendations’ and ‘Price over $15’ have been removed from this part of the stock screen.)

As I mentioned, investors require more assurances as they will be holding stocks for longer periods, and may not check on their stocks every week. For this, we have added longer term filters of proven past performance of the stock. We have added criteria for the past 5 years of earnings and sales growth of over 15%. This shows consistency.

I can understand the need for this by Investors, but I don’t think Traders should be waiting 5 years for a stock to prove itself. But remember, the risk profile of Traders and Investors are completely different. Always use your own judgement, and what is right for your risk profile.

Don’t let anyone tell you there is only one way to make money from stocks. This is a human flaw; people think their way is the right way. There are hundreds of technical indicators and fundamental metrics, with variable settings, the combinations of which are mind-boggling. Therefore, there are hundreds of strategies to make money from stocks. What matters is having a trading plan, patience and discipline.


In terms of forecasting, I don’t believe in long-term forecasting. In this case, I’m referring to the ‘EPS growth next 5 years’ filter. So many things can change over 5 years, change in management, new competition, recession etc.

I have included the ‘EPS growth next year’ filter, as a one-year forecast is more reasonable.

I believe people use these longer-term forecasts because they are trying to attain certainty in an area where there is none. Trading/investing is about probabilities; there are no certainties in speculation.

Also, as we are dealing with earnings and sales data, we get new information every quarter in earnings season. This (real data) will give us a truer picture, quarter by quarter, mapping out the destination of the stock price.

Best High Growth Stocks. Investors Screen Results.
Best High Growth Stocks. Investors Screen Results.        Source Finviz.com

The image above shows the performance of the top 10 results from the 16 found by the ‘high growth stock screen for investors’. The screen was performed on Friday Jan 12th 2018.

The results are filtered on Performance for the Year’ (2017) highlighted in yellow. The top 10 returned anything from 46% to 214% for 2017.

The next column, Perf YTD(2018) highlighted in green, is the performance for the current year to date Friday Jan 12th 2018.

Clicking on a stock ticker opens up the chart for the stock.

High Growth Stocks Screener EPS Info.
High Growth Stock’s EPS Info.        Source Finviz.com

Underneath the charts are the stock’s fundamentals. Here we can see the actual EPS info, and the ‘Institutional Ownership’ figures.

Again, 2017 was a great year for high growth stocks. That may not continue into 2018. My personal opinion is 2018 won’t be as good as 2017. But thankfully, I don’t trade my opinion, but rather what the market shows me.

Remember, the stock screening process is only the first step. You need to do further research on each stock, before putting your hard-earned money down.

The screenshots for the high growth stocks screen above are from Finviz.com.

You may also be interested in growth stocks that pay a dividend.