Quality Growth Spell
The MagicDiligence Quality Growth Spell is designed to find the stocks of fast growing, high quality 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.
Joel Greenblatt and MagicFormulaInvesting.com are not associated in any way with this website. Neither Mr. Greenblatt or MagicFormulaInvesting.com endorse this website's investment opinions, strategy, or products. Investment recommendations on this website are not chosen by Mr. Greenblatt, nor are they based on Mr. Greenblatt's proprietary investment model, and are not chosen by MagicFormulaInvesting.com. Magic Formula® is a registered trademark of MagicFormulaInvesting.com, which has no connection to this website. The information on this website is for informational purposes only and solely represents the views and opinions of the author. No warranty is provided or implied as to the accuracy, completeness, or timeliness of this information. This information may not be construed as investment advice of any kind, nor can it be relied upon as the basis for stock trades. DON'T RELY SOLELY ON THIS WEBSITE'S INFORMATION OR STATISTICS! Please do your own research before buying. Alexander Online Properties LLC, the proprietor of this website, is not responsible in any way for losses or damages resulting from the use of this information. Alexander Online Properties LLC is not a registered investment advisor. All logos are trademarked properties of their respective companies.
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