In a market where valuations are elevated and volatility can return quickly, investors are rewarding companies that combine high earnings growth with financial strength.
Screening for stocks with:
- EPS growth above 20%.
- Low debt-to-equity ratios.
- Strong free cash flow.
- Positive analyst revisions.
Can help identify names with both offensive upside and defensive stability.
Here are five U.S. stocks that fit the profile.
1. Nvidia (NVDA)
Sector: Semiconductors
Growth Profile: Explosive AI-driven earnings expansion
NVIDIA (NASDAQ:) remains one of the fastest-growing large-cap companies, fuelled by AI accelerator demand.
Balance Sheet Strength:
- Strong cash position
- Manageable debt levels
- Significant operating leverage
While valuation remains elevated, earnings growth has been strong enough to support premium multiples.
Risk: High expectations leave little room for disappointment.
2. Eli Lilly and Company (LLY)
Sector: Healthcare
Growth Profile: Strong EPS acceleration
Eli Lilly (NYSE:) has delivered robust earnings growth driven by innovation in key therapeutic areas.
Balance Sheet Highlights:
- Investment-grade profile
- Strong operating margins
- Consistent cash flow generation
Healthcare exposure also provides diversification from tech-heavy portfolios.
3. Arista Networks (ANET)
Sector: Networking / AI Infrastructure
Growth Profile: Data centre expansion tailwind
Arista Networks (NYSE:) continues to benefit from hyperscaler AI spending.
Financial Strength:
- Low leverage
- High gross margins
- Strong cash generation
As AI networking demand increases, Arista’s earnings growth trajectory remains solid.
4. Synopsys (SNPS)
Sector: Semiconductor Design Software
Growth Profile: Recurring revenue expansion
Synopsys (NASDAQ:) benefits from increasing chip complexity across the industry.
Balance Sheet Advantages:
- Recurring licensing revenue
- Strong free cash flow
- Moderate leverage
The software-based business model offers higher margin stability compared to hardware suppliers.
5. ServiceNow (NOW)
Sector: Enterprise Software
Growth Profile: Expanding enterprise automation demand
ServiceNow (NYSE:) continues to grow EPS through subscription expansion and operating leverage.
Financial Profile:
- Strong recurring revenue
- Healthy cash reserves
- Improving profitability metrics
As enterprises invest in digital transformation and AI workflow automation, earnings growth remains strong.
Why This Screen Matters Now
In late-cycle markets, companies with:
- High earnings growth
- Low debt exposure
- Consistent cash flow
tend to outperform speculative names.
Strong balance sheets provide flexibility during economic slowdowns, while 20%+ EPS growth supports premium valuations.
What to Watch Going Forward
- Analyst earnings revisions
- Margin expansion trends
- Debt issuance or refinancing activity
- Free cash flow conversion rates
Earnings growth without balance sheet strength can be fragile. But when both align, it often signals durable competitive advantages.
In a market driven by growth narratives, selectivity is key.
Stocks delivering 20%+ EPS growth backed by strong financial foundations may offer a compelling mix of upside potential and resilience.
Investors should combine fundamental screening with valuation discipline and technical confirmation before initiating positions.
