Opting for growth stocks as an investment strategy means strategically selecting companies expected to experience substantial growth. These companies are anticipated to grow at rates significantly higher than the average for the overall stock market. This exceptional growth potential makes them highly attractive to investors seeking significant returns. By carefully screening, investors can pinpoint stocks with significant growth potential.
For this screener, the filters have been chosen to identify stocks with high growth potential and manageable risk.
Beta: A Beta greater than 1 indicates that the stock is more volatile than the overall market, which often correlates with higher growth potential.
EPS CAGR (5 Yr): The high EPS CAGR (Earnings Per Share Compound Annual Growth Rate) over the past five years exceeding 20% ensures that the companies have demonstrated substantial earnings growth, a key indicator of strong financial performance and future growth prospects.
Dividend Yield: A dividend yield (DY) of less than 2% suggests that these companies reinvest most of their earnings into the business rather than paying dividends, which is typical for high-growth companies focused on expansion and capital appreciation rather than income distribution.
Stock Market: We prioritized US-listed stocks for this screener.

- Beta: 1.90
- Basic EPS CAGR (5Y): 91.7%
- Dividend Yield: 0.0%
NVIDIA provides graphics, compute and networking solutions. It designs and supplies GPUs used in supercomputers and workstations finding applications across multiple fields, along with developing APIs and system-on-a-chip units (SoCs) for the auto industry, while also supplying AI hardware and software.
- Beta: 1.14
- Basic EPS CAGR (5Y): 29.8%
- Dividend Yield: 0.3%
Alphabet Inc, the parent company of Google, dominates the online advertising market and is a leader in various tech fields including search engines, cloud computing, and artificial intelligence. Its diverse portfolio includes YouTube, Android, and the Google Cloud Platform.
- Beta: 1.48
- Basic EPS CAGR (5Y): 27.9%
- Dividend Yield: 0.0%
Amazon engages in providing e-commerce, cloud computing, and advertising services, among others. It also sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, along with producing media content.
- Beta: 2.22
- Basic EPS CAGR (5Y): 49.3%
- Dividend Yield: 0.8%
Broadcom Inc is a leading designer, developer, and global supplier of a broad range of semiconductor and infrastructure software solutions. Its products serve the data center, networking, software, broadband, wireless, and storage markets.
- Beta: 1.65
- Basic EPS CAGR (5Y): 36.7%
- Dividend Yield: 0.0%
The EV manufacturer was incorporated as Tesla Motors in July 2003, with Elon Musk joining as its largest shareholder in February 2004. Tesla’s Model 3 is the all-time bestselling plug-in electric car globally, and became the 1st electric car to sell 1 million units worldwide in June 2021.
- Beta: 2.33
- Basic EPS CAGR (5Y): 25.9%
- Dividend Yield: 0.1%
Micron Technology, Inc. designs, develops, manufactures, and sells memory and storage products in the United States, Taiwan, Singapore, Japan, Malaysia, China, India, and internationally. It sells its products through its direct sales force, independent sales representatives, distributors, and retailers; web-based customer direct sales channel; and channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho.
- Beta: 1.08
- Basic EPS CAGR (5Y): 28.0%
- Dividend Yield: 0.8%
Caterpillar Inc. manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in the United States and internationally. The company was founded in 1925 and is headquartered in Irving, Texas.
- Beta: 1.04
- Basic EPS CAGR (5Y): 32.8%
- Dividend Yield: 0.0%
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages.
- Beta: 2.07
- Basic EPS CAGR (5Y): 21.8%
- Dividend Yield: 0.4%
Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. It was incorporated in 1980 and is headquartered in Fremont, California.
You can find growth stocks easily using Investing Pro. Here are the steps:
- Click on the Screener tool.
- Select ‘Beta (1 Year)’ as a filter parameter on the Screener page, and set the threshold value to greater than 1.
- For U.S.-centric stocks, select ‘United States’ under the ‘Trading Region’ tab drop-down, and make sure to check (select) the ‘Primary Trading Item’ option.

- Add a filter for ‘Basic EPS CAGR (5Y)’ greater than 20%

- Add a filter for ‘dividend yield’ less than 2%

- You can then see the list of all the companies falling in the desired screener filters’ range arranged in a descending order.
What are growth stocks?
Growth stocks are shares in companies expected to grow at an above-average rate compared to other companies in the market. These companies typically reinvest their earnings into expansion, research and development, and other projects to fuel continued growth.
How do growth stocks differ from value stocks?
Growth stocks are often contrasted with value stocks, which are shares in companies believed to be undervalued by the market. While growth stocks are expected to increase in value due to their potential for rapid growth, value stocks are expected to gain value as the market recognizes their intrinsic worth.
What are the risks associated with growth stocks?
- Volatility: Growth stocks can be more volatile than the broader market.
- Higher valuations: Higher P/E ratios can make these stocks more susceptible to price corrections.
- Market sentiment: Investor sentiment can greatly affect growth stock prices, sometimes leading to overvaluation or rapid declines.
How do growth stocks perform in different market conditions?
- Bull markets: Growth stocks tend to perform well as investor confidence is high and economic conditions are favorable.
- Bear markets: These stocks can be more vulnerable to downturns as high valuations and speculative investments are often the first to be sold off.
Do growth stocks pay dividends?
Most growth stocks do not pay significant dividends, as they prefer to reinvest earnings into the company to fund further growth. Investors in growth stocks typically seek capital appreciation rather than income from dividends.
Can I invest in growth stocks through mutual funds or ETFs?
Yes, there are many mutual funds and ETFs that focus specifically on growth stocks. These can provide diversified exposure to a range of growth companies and reduce individual stock risk.

