Find companies with consistent earnings growth and high profit margins.

**Conclusion (TL;DR)**
Within the S&P 500, the cleanest combination of (1) durable EPS growth over the last five years and (2) thick profitability (net-margin > 20 %) belongs to a short list of large-cap leaders headed by Nvidia, Visa and Microsoft. 📈💪

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## Screen Results *(sorted by net margin)*

| Ticker | Sector | Net Profit-Margin (TTM) | 5-yr EPS CAGR | Why It Passes the “Quality & Growth” Test |
|--------|--------|-------------------------|---------------|-------------------------------------------|
| NVDA | Semiconductors | 56.1 % | 14.2 % | AI-driven revenue explosion plus fab-light model keeps margins elite. |
| V | Payments | 50.8 % | 18.8 % | Network-effects moat + relentless buybacks drive double-digit EPS growth. |
| CME | Exchanges | 59.4 % | 13.3 % | Futures volumes scale almost cost-free, protecting industry-high margins. |
| MSCI | Financial Data | 39.0 % | 18.5 % | Subscription model + index licensing yields sticky cash flow. |
| META | Social Media | 38.9 % | 24.0 % | Ad-pricing power returning while Reality Labs cap-ex moderates. |
| MSFT | Software/Cloud | 36.1 % | 14.1 % | Azure + Office keep operating leverage high; AI services provide new leg. |
| GOOG / GOOGL | Search & Cloud | 33.6 % | 28.7 % | Search cash-cow funds Gemini roll-out; margins stay >30 % even after AI spend. |
| BX | Alt-Asset Mgr. | 40.5 % | 24.6 % | Performance fees turbo-charge earnings during market up‐cycles. |
| DLR | Data-Center REIT | 39.8 % | 12.6 % | Long-term hyperscaler leases lock in steady FFO growth. |

*Source: Ainvest FinQuery screen — criteria: “S&P 500 stocks with net-margin > 20 % **and** five-year EPS compound-growth > 10 %.”*

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## How to Use This List

1. **Core Holdings Basket** – Each name pairs robust profitability with proven growth, making them suitable anchors in a quality-tilted equity sleeve.
2. **Relative-Value Check** – Even great businesses can trade rich; compare their EV/FCF or PEG to sector medians before adding.
3. **Monitor Margin Sustainability** – Margin compression strikes fastest in cap-intensive industries (e.g., NVDA wafer supply, DLR power costs). Keep an eye on forward guidance.

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### Quick Portfolio Tips 🧭

• **Barbell Idea:** Couple ultra-profitable tech (MSFT, GOOG) with counter-cyclical cash machines like CME for smoother ride through rate or macro shocks.
• **Earnings Calendar:** META, MSFT and GOOG all report late October—clusters of catalysts can create entry opportunities.
• **Risk Management:** Size positions so that no single stock (no matter how “high-quality”) represents more than ~5 % of total portfolio value.

Consistent earnings compounding plus fat margins is a scarce—and historically rewarding—combo. Use it to build a high-conviction watch-list and let fundamentals, not headlines, guide your next move. 🚀📊