Just 8 Stocks Make These 'Rule Of 10' Screens (2024)

Looking for steady long-term earnings and sales growth? ServiceNow (NOW), Chipotle Mexican Grill (CMG), Fortinet (FTNT), Cadence Design Systems (CDNS), Intuit (INTU), Paycom Software (PAYC), Insulet (PODD) and Aptiv (APTV) appear in Goldman Sachs' "Rule of 10" stock screens for revenue and profits.

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Steady, long-term growth is a hallmark of IBD Long-Term Leaders. Fortinet and CDNS stock are Long-Term Leaders.

Chipotle is just below a buy zone. ServiceNow stock and Cadence Design are actionable from a 21-day line bounce. Intuit stock is just below key resistance in a long base.

S&P 500 Stocks On Both 'Rule Of 10' Screens

CompanyTickerSales growth (CAGR)Net income growth (CAGR)
ServiceNowNOW22%26%
Paycom SoftwarePAYC21%23%
FortinetFTNT21%20%
InsuletPODD19%33%
Chipotle Mexican GrillCMG14%24%
IntuitINTU13%15%
Cadence Design SystemsCDNS12%15%
AptivAPTV11%30%
Source: Goldman Sachs

Rule Of 10 Sales Growth

Goldman's original "Rule of 10" model focuses on S&P 500 stocks with at least 10% sales growth in the prior two years, with that minimum pace expected for the next three years.

Some 20 stocks meet this sales criteria: Enphase Energy (ENPH), Tesla (TSLA), SolarEdge Technologies (SEDG), Palo Alto Networks (PANW), NOW stock, Paycom, FTNT stock, DexCom (DXCM), Insulet, Axon Enterprise (AXON), Arista Networks (ANET), Ceridian (CDAY), CMG stock, Intuit, Adobe (ADBE), Cadence Design, Monster Beverage (MNST), Starbucks (SBUX), APTV stock and Salesforce.com (CRM).

Rule Of 10 Earnings Growth

Another "Rule of 10" screen looks at S&P 500 stocks with 10% or more net income growth over the 2021-2025 period. Some 18 stocks fit the bill here.

Baker Hughes (BKR), Match Group (MTCH), PODD stock, Aptive, Booking Holdings (BKNG), ServiceNow, Schlumberger (SLB), Chipotle, PAYC stock, Halliburton (HAL), Fortinet, Howmet Aerospace (HWM), Cadence Design, Xylem (XYL), INTU stock, Autodesk (ADSK), UnitedHealth Group (UNH) and Molina Healthcare (MOH).

Among those appearing on at least one screen, Tesla stock and Palo Alto Networks are on IBD Leaderboard, with CMG stock on the Leaderboard watchlist. NOW stock is on SwingTrader. Chipotle, ServiceNow and CRM stock are on the IBD 50. Chipotle, Fortinet, Booking Holdings, Tesla and PANW stock are on the IBD Big Cap 20.

Please follow Ed Carson on Twitter at @IBD_ECarsonfor stock market updates and more.

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Just 8 Stocks Make These 'Rule Of 10' Screens (2024)

FAQs

What is the rule of 10 stock screen? ›

"We screen for S&P 500 stocks that grew sales by at least 10% during each of the previous two years and are expected to grow sales by at least 10% in the current year and each of the next two years," Goldman Sachs' David Kostin said.

What is the rule of 10 in stocks? ›

This rule is a general guideline for investors to use when considering their asset allocation. It suggests that investors may expect an average annual return of around 10% from stocks, 5% from bonds, and 3% from cash over the long term.

What is the 8 rule in the stock market? ›

The 8% Rule was built to have higher returns and more shallow pullbacks than stocks in general. With this combination, your money compounds MUCH faster. Over the long-term, The 8% Rule beats the market 4-to-1, allowing for a safe withdrawal rate of 8%.

What is the IBD 8% rule? ›

IBD has two main rules for selling a stock: Take your profits at 20% to 25% and cut your losses at 7% to 8%. If you are buying stocks on breakouts from properly formed bases, following these guidelines will keep your head above water.

What is the 80 20 rule in stocks? ›

80% of your portfolio's losses may be traced to 20% of your investments. 80% of your trading profits in the US market might be coming from 20% of positions (aka amount of assets owned). 80% of the US stock market capitalisation comes from around 20% of the S&P 500 Index.

What is the 15-15-15 rule in stock market? ›

Meaning of the 15-15-15 rule in Mutual Funds

The Investment: You should invest Rs 15,000 per month. The Tenure: The total of your investment should be 15 years. It means that you will invest Rs 15,000 every month for the next 15 years. The Return: Your expected returns on your investment should be 15%

What time of day is best to buy options? ›

Many professional traders trade actively in the first hour or two of trading and take the middle of the day off. This is the best time of the day for trading options for experienced and skillful traders.

What is the 60 30 10 rule stocks? ›

This reinventive basic rule to portfolio structure means allocating 60% to equities, 30% to bonds, and 10% to alternatives. The exact percentages may vary by portfolio, but the key idea is that Alternatives should be an integral part of every portfolio, in some percentage.

What is No 1 rule of trading? ›

Rule 1: Always Use a Trading Plan

You need a trading plan because it can assist you with making coherent trading decisions and define the boundaries of your optimal trade. A decent trading plan will assist you with avoiding making passionate decisions without giving it much thought.

What is the 7% rule in stocks? ›

The 7% stop loss applies to any stock purchase at any level. If you bought a stock at 45 and the buy point was at 43, you want to calculate the 7% sell rule from your purchase price.

What is the 357 rule in trading? ›

What is the 3 5 7 rule in trading? A risk management principle known as the “3-5-7” rule in trading advises diversifying one's financial holdings to reduce risk. The 3% rule states that you should never risk more than 3% of your whole trading capital on a single deal.

What is the 90% rule in stocks? ›

Key Takeaways

The 90/10 strategy calls for allocating 90% of your investment capital to low-cost S&P 500 index funds and the remaining 10% to short-term government bonds. Warren Buffett described the strategy in a 2013 letter to his company's shareholders.

What are the IBD principles? ›

They comprise the following categories: Stage the disease; Stratify patients; Set treatment goals; Select appropriate treatment; and Supervise therapy. Optimised management of patients with IBD based on the 5S Principles can be achieved most effectively within an optimised clinical care environment.

Is IBD a legal disability? ›

Crohn's disease is a disability because it falls within the scope of inflammatory bowel diseases. IBDs are on the list of conditions that the SSA considers disabilities.

Does IBD qualify for disability? ›

Yes, you can get disability for inflammatory bowel disease if your condition makes it impossible for you to work. Before you can receive benefits payment, you'll have to prove to the SSA that your IBD meets their strict medical criteria.

What is the 20 20 rule in stock trading? ›

In other words, the Rule of 20 suggests that markets may be fairly valued when the sum of the P/E ratio and the inflation rate equals 20. The stock market is deemed to be undervalued when the sum is below 20 and overvalued when the sum is above 20.

What is the 90 10 rule in stock market? ›

The easiest way to do it is with the 90/10 rule. It goes like this: 90% of your contributions go to safe, boring investments like low-cost total stock market index funds. The remaining 10% is yours to play with.

What is the 11 o'clock rule in stocks? ›

One such strategy that has gained popularity among day traders and swing traders is the 11am rule. This rule suggests that significant trend reversals often occur before 11 am Eastern Standard Time (EST) during the regular trading session.

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