I have created a new “fund” based on the following criteria:
- Revenue Growth Rate Last 5 years > 15%
- Return on Equity (TTM) > 15%
- EPS Growth History Last 5 years > 15%
- EPS Growth Long Term (3 to 5 years) > 15%
I believe that these criteria will deliver results superior to investing in the S&P as these stocks have high potential for greater growth as well as a proven track record of increasing returns. Since I believe Return on Equity (ROE) is the best indicator of future results, I have picked the top 20 of stocks, sorted in descending order of ROE:
I have completed my analysis for my 2026 growth stocks. Here they are:
|
Symbol |
Description |
Revenue Growth Rate Last 5 Years |
EPS Growth History Last 5 Years |
Return on Equity (TTM) |
Est. EPS Growth Long Term (3 to 5 Years) |
Price |
|
NVDA |
NVIDIA Corp |
64.24% |
91.83% |
107.36% |
46.29% |
$186.50 |
|
LLY |
Eli Lilly and Co |
15.08% |
18.77% |
96.82% |
44.35% |
$1,074.68 |
|
MPWR |
Monolithic Power Systems Inc |
28.58% |
72.12% |
64.03% |
18.80% |
$906.36 |
|
GOOGL |
Alphabet Inc |
16.68% |
27.43% |
35.45% |
18.45% |
$313.00 |
|
TSM |
Taiwan Semiconductor Manufacturing Co Ltd |
22.02% |
27.72% |
35.31% |
27.55% |
$303.89 |
|
ANET |
Arista Networks Inc |
23.77% |
27.37% |
31.74% |
17.30% |
$131.03 |
|
AVGO |
Broadcom Inc |
21.74% |
49.75% |
31.05% |
35.10% |
$346.10 |
|
HCI |
HCI Group Inc |
26.06% |
21.85% |
30.61% |
25.00% |
$191.69 |
|
DOCS |
Doximity Inc |
37.42% |
78.76% |
24.61% |
15.50% |
$44.28 |
|
AMZN |
Amazon.com Inc |
17.86% |
36.89% |
24.33% |
18.92% |
$230.82 |
|
NVMI |
Nova Ltd |
24.49% |
36.56% |
23.58% |
18.80% |
$328.39 |
|
LRN |
Stride Inc |
18.24% |
58.07% |
23.04% |
20.00% |
$64.93 |
|
LPLA |
LPL Financial Holdings Inc |
17.10% |
16.23% |
21.32% |
20.60% |
$357.17 |
|
ARES |
Ares Management Corp |
17.09% |
15.75% |
20.11% |
24.58% |
$161.63 |
|
IBKR |
Interactive Brokers Group Inc |
29.85% |
27.01% |
19.82% |
16.00% |
$64.31 |
|
PODD |
Insulet Corp |
22.92% |
98.82% |
19.68% |
29.80% |
$284.24 |
|
XPEL |
Xpel Inc |
26.47% |
26.59% |
19.14% |
35.40% |
$49.91 |
|
PRIM |
Primoris Services Corp |
15.43% |
15.51% |
18.56% |
18.60% |
$124.14 |
|
DORM |
Dorman Products Inc |
15.18% |
19.09% |
18.19% |
23.20% |
$123.19 |
|
NOW |
ServiceNow Inc |
25.99% |
16.56% |
16.81% |
21.34% |
$153.19 |
So, as always, do you own research to confirm before investing. And you know what they say about free advice!
Happy New Year!