The Growth Velocity Framework
While value screening protects capital downside, high-conviction growth screening captures market outperformance during bull markets. Our Growth Velocity screen combines Peter Lynch GARP (Growth at a Reasonable Price) metrics with William O'Neil momentum filters.
Key Quantitative Screening Requirements
- Quarterly EPS Growth YoY > 25.0%: Accelerating earnings per share is the primary driver of institutional buying.
- ROE > 30.0%: Exceptional return on equity indicates strong pricing power and economic moat.
- PEG Ratio < 1.8x: We avoid overpaying for growth. The Price/Earnings to Growth ratio ensures reasonable valuation.
- Positive Revenue Acceleration: Four consecutive quarters of revenue expansion.
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