Cannabis

Screening Filters

1. Market Cap (Minimum: $300,000,000):

   • Purpose: To filter out smaller, potentially riskier companies and focus on more established cannabis-related businesses.
   • Rationale: Companies with a market capitalization above $300 million are generally more stable and have a proven track record, which aligns with identifying credible players in the cannabis industry.

2. Industry (The Cannabis Industry):

   • Purpose: To narrow the search specifically to companies operating within the cannabis sector.
   • Rationale: Since the user query is "cannabis," this filter ensures that only companies directly involved in the cannabis industry are included in the results.

3. Annual Revenue YoY Growth (Minimum: 0%):

   • Purpose: To focus on companies that are at least maintaining or growing their revenue year over year.
   • Rationale: Positive or stable revenue growth is a sign of a healthy business, especially in a rapidly evolving industry like cannabis. This filter excludes companies with declining revenues, which may indicate operational or market challenges.

4. P/E Ratio (TTM) (Maximum: 50):

   • Purpose: To identify companies that are reasonably valued relative to their earnings.
   • Rationale: A P/E ratio cap of 50 ensures that the selected stocks are not excessively overvalued, which is particularly important in a speculative industry like cannabis. This helps balance growth potential with valuation discipline.

Why Results Match:

• The filters collectively ensure that the results are focused on cannabis companies that are relatively established (market cap filter), actively operating in the cannabis industry (industry filter), showing at least stable revenue growth (revenue YoY growth filter), and are not excessively overvalued (P/E ratio filter).
• These criteria align well with the user's query by targeting cannabis-related stocks while maintaining a focus on financial stability and reasonable valuations.