I found these power stocks in 1 minute
Using 1 simple filter
Looking for new quality companies, but lack the time?
Sometimes, you just need less than 1 minute to find powerful ideas.
I used 1 pretty easy screener criteria to find 46 solid names: stay with me!
If you’re new, don’t miss out some of my recent updates:
As usual, this is not financial advice. Do your own research, always.
Let’s dive in.
The simple idea
If you’re looking for quality companies, you may be obsessed with:
Pricing Power: companies that can raise their price thanks to their brand, reputation, or need-based business;
Scalability: companies that can benefit from extending their reach
Efficiency: companies that can reduce their input costs over time with operational excellence
How to find these companies is pretty simple:
➡️ is Gross Margin growing more than Revenues?
Let’s jump to my Finchat to show you how I found quality ideas with the following screener criteria:
Revenue Growth 3Y CAGR > 10%
Gross Profit 3Y CAGR > 20% (more than revenues!)
To make my wishlist shorter and more solid, I also filtered for:
Country: US
Gross Margin > 30%
Market Cap > $1B
Free Cash Flow Margin > 20%
And I exluded the following industries:
Finally, I ordered the watchlist based on how much Gross Profit growth has been outpacing Revenue Growth.
You can see the top names here. For example:
Lantheus ($LNTH): over the past 3 years, Gross Profit has consistently grown 22% more than revenues, where the latter have grown 57% on average.
Snowflake ($SNOW): 56% revenue growth on average, and 63% average gross profit increase. That’s a +8% gap every year.
And so on (
Now, let’s briefly zoom in to some of my favorite names from this list.
5. AppFolio [$APPF]
Gross Profit CAGR vs Revenue CAGR ➡️ +3.58%
3Y Revenue CAGR: 31.38%
3Y Gross Profit CAGR: 34.96%
On top of:
Gross Margin: 64.96%
FCF Margin: 23.33%
Negative Net Financial Position (Cash > LT Debt)
PEG: 0.46
Shares Outstanding 3Y CAGR: +1.12%
📈 The stock has delivered +17.49% CAGR over the past 5 years.
4. BILL Holdings [$BILL]
Gross Profit CAGR vs Revenue CAGR ➡️ +4.07%
3Y Revenue CAGR: 62.97%
3Y Gross Profit CAGR: 67.04%
On top of:
Gross Margin: 85.24%
FCF Margin: 23.27%
Negative Net Financial Position (Cash > LT Debt)
P/FCF: 29.86x
Shares Outstanding 3Y CAGR: +2.83%
📈 The stock has delivered +20.64% CAGR over the past 5 years (but what a chart!)
3. Booking Holdings [$BKNG]
Gross Profit CAGR vs Revenue CAGR ➡️ +5.30%
3Y Revenue CAGR: 35.75%
3Y Gross Profit CAGR: 41.05%
On top of:
Gross Margin: 84.67%
FCF Margin: 36.88%
Negative Net Financial Position (Cash > LT Debt)
P/FCF: 20.25x
Shares Outstanding 3Y CAGR: -7.46% (!)
📈 The stock has delivered +22.24% CAGR over the past 5 years.
2. Snowflake [$SNOW]
Gross Profit CAGR vs Revenue CAGR ➡️ +7.85%
3Y Revenue CAGR: 55.59%
3Y Gross Profit CAGR: 63.44%
On top of:
Gross Margin: 67.83%
FCF Margin: 26.43%
Negative Net Financial Position (Cash > LT Debt)
P/FCF: 70x
Shares Outstanding 3Y CAGR: +3.71%
📈 The stock has delivered -8.50% CAGR over the past 5 years.
1. Lantheus Holdings [$LNTH]
Gross Profit CAGR vs Revenue CAGR ➡️ +22.25%
3Y Revenue CAGR: 56.59%
3Y Gross Profit CAGR: 78.84%
On top of:
Gross Margin: 64.38%
FCF Margin: 24.79%
Negative Net Financial Position (Cash > LT Debt)
P/FCF: 14.94x
Shares Outstanding 3Y CAGR: +0.95%
📈 The stock has delivered +33.44% CAGR over the past 5 years.
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Work with me
Would love to become a successful and confident quality investor?
I can accelerate your journey.
➡️ I have 4 slots remaining for Q1 2025 at The Investor’s Edge, my 1:1 Mentorship Program.
The program fits well with your goals, if you:
Are currently struggling with equities
You would like do kick start with stocks, but lack a proven method
You don’t know when to buy or sell, or value stocks
You don’t want to wait years (and repeat the same mistakes I did years back)
You would love to invest with full control over your decisions
You would love to multiply your wealth in the future, at controlled risk
✅ To apply, just turn on the chat below. I can’t wait to work with motivated people like you.
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Thank you again for your valuable time.
Happy Investing,
Francesco - Business Invest