Which stocks should I buy?

Screening Filters

1. Market Capitalization (market_cap: min $10 billion):

   • Purpose: To focus on large-cap companies with a market capitalization of at least $10 billion.
   • Rationale: Large-cap companies are generally more stable, established, and less volatile compared to smaller companies. This aligns with the user's broad question of "which stocks should I buy," as these companies are often considered safer investments for a wide range of investors.

2. Price-to-Earnings Ratio (pe_ttm: max 20):

   • Purpose: To identify stocks that are relatively undervalued based on their earnings.
   • Rationale: A P/E ratio below 20 is often considered reasonable or undervalued, depending on the industry. This filter helps screen for stocks that may offer good value for their price, which is a key consideration for investors looking to make prudent buying decisions.

3. Dividend Yield (dividend_yield_ttm: min 2%):

   • Purpose: To focus on companies that provide a steady income through dividends.
   • Rationale: A minimum dividend yield of 2% ensures that the selected stocks provide a reasonable return to investors in the form of dividends. This is particularly appealing to investors seeking income-generating investments or those who prefer companies with a history of returning value to shareholders.

4. Revenue 5-Year CAGR (revenue_5yr_cagr: min 5%):

   • Purpose: To identify companies with consistent revenue growth over the past five years.
   • Rationale: A minimum compound annual growth rate (CAGR) of 5% indicates that the company has been growing its revenue at a healthy pace. This filter ensures that the selected stocks belong to companies with a track record of expanding their business, which is a positive indicator for future performance.

5. Beta (LowRisk, ModerateRisk):

   • Purpose: To focus on stocks with lower volatility compared to the overall market.
   • Rationale: By selecting stocks with low to moderate beta, the screener prioritizes companies that are less likely to experience extreme price swings. This is suitable for investors who prefer a more stable investment approach, especially when the user's question is broad and does not specify a high-risk appetite.

Why Results Match:

• The filters collectively aim to identify stable, established companies with strong fundamentals, reasonable valuations, and consistent growth. These characteristics are generally desirable for investors looking to make informed and prudent stock purchases.
• The inclusion of dividend yield and revenue growth ensures that the selected stocks not only provide income but also have the potential for capital appreciation, catering to a balanced investment strategy.
• By focusing on low to moderate beta stocks, the screener aligns with a conservative to moderate risk profile, which is appropriate for a general "which stocks should I buy" query where the user's risk tolerance is not explicitly stated.