This screen targets companies growing revenue by 12%+ and earnings per share by 8%+ over the past three years, so both the top line and the bottom line are expanding.

It also requires healthy gross and net margins and limits stock-based compensation, which helps exclude companies relying heavily on cash burn or shareholder dilution to fund growth.

Growth investing backs companies expanding revenue and earnings faster than the market, on the thesis that a larger future business justifies paying up today. The upside comes from compounding, since a company growing earnings at a high rate for years can grow into and past even a rich valuation.

The trap is unprofitable growth, meaning expansion funded by cash burn or share issuance that never converts into durable earnings. Filtering for margins and controlled dilution keeps the focus on growth that pays its own way.

Growth stocks are where valuation discipline matters most. For any name here, estimate fair value under sensible growth assumptions so you know what the market is already pricing in.

Compare candidates on both growth rate and margin quality. The best combination is fast growth that is also profitable, not one at the expense of the other.