Which companies have consistent earnings growth and high profit margins?

**Bottom line 🤓** Within the S&P 500, a select group of companies combine **double-digit five-year EPS growth with net profit margins north of 20 %**, signaling both operating efficiency and enduring demand. The stand-outs below spread across multiple sectors, giving you a ready-made watch-list of “quality compounders.” | Ticker | Company | Sector | 5-yr EPS Growth* | Net Profit Margin* | What keeps earnings & margins durable | |--------|---------|--------|------------------|--------------------|---------------------------------------| | NVDA | Nvidia | Info-Tech | 1 599 % | 56.1 % | Dominant GPU/AI moat, pricing power, fab-light model keeps gross margins >70 % | | ANET | Arista Networks | Info-Tech | 346 % | 40.5 % | Cloud-switching leader; software-heavy mix protects margins through component cycles | | MPWR | Monolithic Power Sys. | Info-Tech | 945 % | 20.5 % | Fab-light analog chips in secular-growth niches (EV, data-center); OPEX discipline | | EW | Edwards Lifesciences | Health Care | 436 % | 23.4 % | TAVI heart-valve franchise, high ASPs, limited competition extend runway | | CF | CF Industries | Materials | 359 % | 23.7 % | Low-cost nitrogen producer; shale-gas advantage sustains wide spreads | | WMB | Williams Cos. | Energy (Midstream) | 971 % | 22.5 % | Regulated gas pipelines with CPI-linked tariffs = steady cash-flow escalators | | WFC | Wells Fargo | Financials | 1 149 % | 25.2 % | NIM expansion, cost-cutting; large retail deposit base cushions funding costs | | SBAC | SBA Communications | Real Estate | 3 205 % | 32.5 % | Cell-tower REIT on long-term inflation-linked leases; low churn clients | \*Source: Ainvest FinScreener, EPS CAGR 2020-Q3 → 2025-Q2 and latest trailing-12-month net margin. --- ### How we screened 🧐 1. U.S. universe → narrowed to **S&P 500 constituents** for liquidity and reporting rigor. 2. **EPS growth ≥ 10 %** over the past five years to confirm multi-cycle consistency. 3. **Net profit margin ≥ 20 %** to ensure pricing power and cost discipline. 4. Cross-checked market caps to avoid one-off spikes—results still show megacaps (NVDA) to midcaps (MPWR). The full query surfaced 95 names; those above rank highest on margin + growth spread. A broader U.S. screen (all caps) returned 460 tickers, including niche plays like Cal-Maine (CALM) and Robinhood (HOOD), but liquidity and cyclicality risks rise sharply outside the large-cap cohort. --- ### Why these metrics matter 📊 • **High margins** act as an inflation buffer—input-cost bumps crunch low-margin firms first. • **Consistent EPS growth** signals that management reinvests capital at high returns rather than relying on financial engineering. • **Sector diversification** reduces idiosyncratic shocks: chips (NVDA) may wobble on capex cycles, yet pipelines (WMB) or med-tech (EW) can offset. --- ### Putting it to work ⚙️ 1. Build a “core compounder” sleeve (10-20 % of equity portfolio) around 3-5 of the names. 2. Use pullbacks near 50-day/200-day moving averages to layer in—these stocks often trade at premiums. 3. Re-evaluate quarterly; trim allocations only if EPS momentum breaks below mid-teens or margins erode >300 bps. --- ### Quick gut-check question 🙋‍♂️ Do you prefer to **concentrate on one sector (e.g., AI-driven tech)** or keep a diversified basket across industries for these quality growers? --- : referencable-result ID 1 — “US Stock with EPS growth 5Y > 10 % and Net Profit Margin > 20 %.” : referencable-result ID 3 — “S&P 500 stocks meeting the same criteria.”