20% Growth Guidance
20% Growth Guidance is the fundamental scanner, and It finds companies whose management has guided for growth of 20% or more, from the latest earnings call.
The difference between technical and fundamental
The technical scanners read price action. They answer "what is the market doing with this stock?" This scanner reads the words of management. It answers "what is this company growing into?"
What the scanner does
The scanner reads management growth guidance from earnings calls and flags any company whose latest guidance is 20% or higher.
That 20% hurdle matters. Growing 20% requires real demand, real capacity, and real execution. Very few companies can honestly guide to that number. When they do, they are telling you the business is growing faster than most of the market.
The scan looks at guidance on a key metric, which can be revenue, EBITDA, or profit. The guidance carries a metric, a timeframe, and the confidence level behind it.
Why it matters
Management guidance is among the strongest signals available. The people inside the business know their numbers before the market does. When they say 20%, they have reasons.
This is a core screen, and one to run often. It tells you what is worth acting on, which complements the technical scanners that tell you when to act. A company guided for 25% growth and showing a Stage 2 breakout is a much stronger idea than a chart move with no story behind it.
Growth is also where returns come from over time. Companies growing revenue and profit at 20% or more grow their business faster than the market.
Reading the guidance carefully
Not all 20% guidance is equal. Check the details:
- Is the growth in revenue, EBITDA, or profit? Revenue growth and profit growth are different promises.
- What is the timeframe? Growth guided for the next quarter is not the same as growth guided for the full year.
- What is the confidence? A management team with a record of hitting its numbers deserves more credence than one that keeps missing.