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Growth Stock Screener Tool

Identify global companies demonstrating consistent, strong growth with our free Growth Stock Screener. Using quantitative metrics inspired by Phil Town's "Rule #1" investment philosophy, this tool filters over 35,000 stocks to find businesses with proven track records across key growth metrics like ROIC, earnings (EPS), sales (Revenue), Equity, and free cash flow, potentially trading at a reasonable price.

Explore the Growth Screener Below

What is Rule #1 Investing?


The “Rule #1” investing philosophy, popularized by investor Phil Town, is derived from Warren Buffett’s famous adage:

Rule No. 1: Never lose money.
Rule No. 2: Never forget rule No. 1.

— Warren Buffett

Town built a strategy around this principle, focusing on buying wonderful businesses at attractive prices to minimize the risk of permanent capital loss while maximizing potential returns through growth.

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Core Principles of Rule #1 Investing

  1. Buy Wonderful Businesses: Invest in great companies with proven track records, competitive advantages (moats), and excellent leadership.
  2. Pay a Margin of Safety Price: Determine the business’s intrinsic value and buy only when it’s available at a significant discount.
  3. Use the 4 M’s:
    • Meaning: Understand the business you invest in.
    • Moat: Ensure it has a durable competitive advantage.
    • Management: Verify the leadership is competent, ethical, and shareholder-friendly.
    • Margin of Safety: Always buy at a discount.
  4. Be Patient: Wait for the right company at the right price.

Key Metrics for Rule #1 Growth Screening

This Growth Stock Screener uses adjustable filters based on quantitative metrics central to Phil Town’s Rule #1 approach, aiming to identify wonderful businesses demonstrating strong historical growth:

1. Profitability & Efficiency Metric: (Indicator of a “wonderful business”)

  • ROIC (10yr % p.a.): Filters for companies consistently earning high returns on the capital invested in their operations, indicating efficiency and often a competitive advantage. Rule #1 emphasizes investing in high-quality businesses.

2. Growth Metrics: (Evidence of business expansion and value creation)

  • Equity Growth (10yr % p.a.): Screens for consistent growth in the company’s book value, reflecting retained earnings and increasing net assets over time.
  • Revenue Growth (10yr % p.a.): Filters for strong, consistent top-line growth, showing the company is successfully expanding its business.
  • EPS Growth (10yr % p.a.): Screens for robust growth in earnings per share, a key indicator of increasing profitability for shareholders.
  • FCF Growth (10yr % p.a.): Filters for companies growing the actual cash available after funding operations and investments, indicating strong financial health and sustainability.

3. Financial Health Metric: (Assessing risk)

  • LT Debt / FCF Ratio: Screens based on the company’s ability to cover its long-term debt with its free cash flow. Rule #1 investors prefer businesses that could pay off debt relatively quickly.

4. Valuation Metrics: (Buying at a reasonable price / margin of safety)

Combining high growth and quality metrics with valuation checks helps identify companies aligning with the Rule #1 philosophy.

How to use the Growth Stock Screener

Growth Stock Screener Demo: Find High-Growth Stocks Quickly

Watch the video above (expand to full screen) for a demo. Detailed instructions are also below the dashboard.

Need a refresher on metrics? Our Stock Investing Glossary can help.

Default Settings & Customization

Our Growth Stock Screener applies default settings inspired by Phil Town's Rule #1 philosophy. Key default filters include:

You can customize your screen by adjusting the available sliders in the dashboard below and using the dropdown filters for Region, Sector, Industry, and Market Cap.

Growth Stock Screener Dashboard

Our data refreshes approximately every three hours. Bookmark this page to identify potential growth investment opportunities regularly. For more metrics or offline analysis, use our ‘All-in-One Excel Screener‘.

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Please suggest improvements via the Contact page.

Disclaimer: Data accuracy is not guaranteed. Always perform your own due diligence by reviewing official company reports before investing.

Detailed Instructions for the Growth Stock Screener

Why Does Rule #1 Investing Work?

The potential effectiveness of Rule #1 investing lies in its combination of qualitative focus (finding wonderful businesses you understand, with moats and good management – assessed outside the screener) and quantitative checks (verifying historical performance and seeking an attractive purchase price using metrics like those in the screener). By focusing on business quality first and then demanding a Margin of Safety, the strategy aims to reduce the risk of permanent capital loss while capturing upside from growth.

Found Potential Growth Stocks?

Deepen your research by analyzing fundamentals and estimating future value for your shortlisted companies.

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Growth Stock Screener Specific FAQs

Why does this screener require high growth across so many metrics (Revenue, EPS, Equity, FCF)?
This aligns with the Rule #1 emphasis on finding truly "wonderful" businesses that demonstrate strong, consistent performance across the board, not just in one area. Growth in all these dimensions simultaneously often indicates a robust and well-managed company.
How does the LT Debt / FCF Ratio fit into a growth strategy?
While focused on growth, Rule #1 also prioritizes safety ("Never lose money"). Ensuring a company isn't overly burdened by debt (can pay it off relatively quickly with FCF) reduces risk, even for high-growth companies.
Is a PEG Ratio < 1 realistic for high-growth stocks?
Finding high-growth stocks with a PEG < 1 can be challenging, especially in certain market conditions. This strict criterion reflects the Rule #1 goal of buying growth at a very attractive price. You may need to relax this filter depending on the market environment or your specific requirements.
Why is the default Discount to Fair Value set so high (> 50%)?
This reflects Phil Town's emphasis on a large margin of safety, aiming to buy companies for roughly half their estimated 'sticker price' (intrinsic value) to minimize risk.

For general questions about using screeners, interpreting results, or limitations, please see our main guide: Guide to Using Stock Screeners FAQs.

Disclaimer: Stock Investor IQ provides financial data & tools for informational and educational purposes only. We are NOT investment advisors, brokers, or investment companies, and nothing herein constitutes investment advice or recommendations. Information is provided ‘as is’ from third-party sources without guarantees of accuracy, completeness, or timeliness. Investing involves risk, including potential loss of principal. Always conduct your own thorough due diligence before making any investment decisions. Stock Investor IQ is not liable for any losses resulting from the use of this information. See our full Terms of Use for details.

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