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17 S&P 500 companies grew quarterly sales per share by at least 40% while expanding gross profit margins and operating margins, a combination the screen found in just 17 of the benchmark's roughly 500 constituents, or about 3% of the index.
The source notes that a portion of those names trade at valuations that qualify as cheap.
What the screen required The three conditions: | Criterion | Threshold | |---|---| | Quarterly (QoQ) sales per share growth | At least 40% | | Gross profit margin | Expanding | | Operating margin | Expanding | 17 of roughly 500 S&P 500 members cleared all three simultaneously.
The 40% per-quarter SPS bar is demanding on its own. Gross margin expansion on top filters out companies growing revenue through volume while giving up per-unit pricing power.
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