Winner Stocks — ROCE > 20%, ROE > 20%, Revenue and Earnings Growth > 15% Simultaneously

A winner stock passes all four simultaneous filters: ROCE above 20%, ROE above 20%, revenue growth above 15%, and earnings growth above 15%. Meeting all four means the business is both highly efficient with capital and actively growing that high-quality business. This combination is genuinely rare — fewer than 2% of US listed companies qualify at any given time.

ROCE measures returns on all capital (equity + debt) and cannot be inflated by leverage alone. ROE measures returns on equity and can be inflated by borrowing. Requiring both above 20% simultaneously means the high returns are driven by genuine business quality, not financial engineering. A business with ROE of 25% but ROCE of 10% is using debt leverage to inflate equity returns — this screen would not include it.

Revenue growth alone can come from unprofitable expansion — a company growing revenue 20% while margins decline isn't a quality growth stock. Earnings growth alone can come from cost cutting that erodes the revenue base. Both above 15% simultaneously confirms the business is growing efficiently — top line and bottom line expanding together, which is the true hallmark of a winner stock.

The number fluctuates with market conditions and earnings cycles but is consistently small — typically 20–60 US stocks at any given time pass all four criteria simultaneously. During market drawdowns and earnings contractions, the number shrinks further. The scarcity is the point — this screen identifies the truly exceptional, not the merely good.

Usually yes, but not always. During broad market corrections, sector rotations, or earnings-driven sell-offs, even exceptional quality businesses can trade at reasonable multiples temporarily. The P/E and market cap data in the results table helps identify whether current valuations offer a reasonable entry point alongside the quality metrics.

Yes. The screen has no market cap minimum, so small and mid-cap companies with exceptional fundamentals appear. Smaller winner stocks often represent the earliest stage of a long compounding journey — they're yet to be widely covered by analysts or owned by large institutional funds, which creates potential discovery value.

Both target high-quality businesses. Winner Stocks is stricter on both ROCE and ROE (20% threshold vs. 15%) and explicitly requires earnings growth. Coffee Can additionally requires net margin above 10% but uses a 15% ROCE/ROE threshold. Winner Stocks is the more concentrated quality filter; Coffee Can is a broader 'buy and hold forever' framework. Stocks appearing on both screens are the highest conviction candidates.

ROCE above 20% consistently year after year means the business earns exceptional returns on all the capital deployed in it — equity, debt, and retained earnings. This level almost always reflects a structural competitive advantage: a brand, patent, network effect, regulatory moat, or switching costs that prevent competitors from matching returns. It's the quantitative signal of what Warren Buffett calls an 'economic moat.'

No. The screen is a powerful filter but not a buy signal on its own. Verify the quality metrics are consistent over multiple years. Assess the valuation — even exceptional businesses can be overpriced. Understand why the business has these exceptional metrics and whether the competitive advantages are durable. Use the screen as a starting list for deep-dive research, not as a pre-approved buy list.

Yes. StockSifting updates all metrics daily using the most recently filed financial data. Revenue and earnings growth figures update as new quarterly and annual filings are processed. A company that reported strong earnings last week will have those figures reflected in today's screen results.