How the Screener Matches “Best Long-Term US Stocks”
Your question is broad—“best long-term stocks in the US”—so the screener focuses on high-quality, relatively safer, growing businesses in the U.S. market. Each filter is aimed at improving long-term durability and risk/reward.
1. Market Cap ≥ $10B & Category: Large/Mega Cap
- Purpose: Focus on established, financially stable companies.
- Rationale:
- Large and mega caps (≥ ~$10B) are typically industry leaders with proven business models, diversified revenue streams, and better access to capital.
- For long-term investing, these names tend to be less volatile and less likely to “blow up” than small/micro caps. This is consistent with looking for “best” long-term compounders rather than speculative plays.
2. Region: United States
- Purpose: Restrict results to U.S.-based stocks.
- Rationale:
- You explicitly asked about the US stock market, so this ensures companies are primarily listed and operating under U.S. regulatory and accounting standards.
- It avoids ADRs or foreign listings, keeping the universe aligned with your request.
3. List Exchange: XNYS, XNAS, XASE (NYSE, NASDAQ, AMEX)
- Purpose: Limit to major U.S. exchanges.
- Rationale:
- NYSE, NASDAQ, and AMEX list the most liquid, widely followed companies.
- This improves transparency, trading liquidity, and data quality—important for long-term investors who want to get in and out without huge spreads or poor disclosure.
4. Net Margin ≥ 10%
- Purpose: Ensure companies are meaningfully profitable.
- Rationale:
- A net margin of at least 10% indicates a solid, profitable business with some pricing power or operational efficiency.
- Over the long term, consistently profitable companies are better positioned to reinvest, pay dividends, buy back stock, and survive economic downturns.
5. Debt-to-Equity ≤ 1
- Purpose: Control balance sheet risk.
- Rationale:
- A D/E ratio ≤ 1 keeps leverage at a moderate or low level.
- For long-term investing, excessive debt can be lethal in recessions or high-rate environments; screening this out improves the quality and resilience of the portfolio candidates.
6. Revenue 5-Year CAGR ≥ 8%
- Purpose: Focus on companies with healthy, sustained growth.
- Rationale:
- A 5-year compound annual growth rate in revenue of ≥ 8% signals a company that is not just stable but expanding.
- Long-term returns are heavily driven by underlying business growth; this filter avoids stagnating or shrinking businesses and favors potential compounders.
7. Analyst Consensus: Strong Buy or Moderate Buy
- Purpose: Align with current professional sentiment.
- Rationale:
- Requiring at least a “Moderate Buy” screens for companies where the majority of covering analysts see upside and relatively favorable risk/reward based on fundamentals and outlook.
- While analysts are not infallible, this removes names with widespread negative views or serious known issues, which is sensible for a “best long-term stocks” list.
Why These Results Fit Your Request
- They focus on large, established U.S. companies, matching your “US stock market” and long-term stability needs.
- They require solid profitability and manageable debt, which supports durability through cycles.
- They demand multi-year revenue growth, increasing the odds of long-term compounding rather than stagnation.
- They incorporate positive analyst consensus, avoiding companies with widely recognized red flags.
Taken together, these filters are designed to surface higher-quality, growing U.S. companies that are more likely to be suitable candidates for long-term investing, rather than short-term trading or speculative bets.
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.