Screening Filters
Price: 45–55
- Purpose: Focus on stocks trading “around $50,” as requested.
- Rationale:
- A $45–$55 band gives enough room to include candidates close to $50 without being overly rigid (e.g., excluding a great $48 or $52 stock).
- This aligns directly with your price preference while still capturing a reasonable universe of names.
Moving Average Relationship: PriceAboveMA20 & PriceAboveMA200
- Purpose: Find stocks in an established uptrend rather than those in a downtrend or sideways market.
- Rationale:
- PriceAboveMA20: The stock is above its 20-day moving average, indicating short-term positive momentum. This suggests recent buying interest and near-term strength.
- PriceAboveMA200: The stock is above its 200-day moving average, indicating a longer-term uptrend. This helps avoid structurally weak names that might look “cheap” but are actually deteriorating.
- Combining both means the stock is not only strong in the long term but also currently behaving well in the short term—often a better setup for potential future gains.
Revenue 5-Year CAGR ≥ 15%
- Purpose: Target companies with strong, sustained top-line growth.
- Rationale:
- A 5-year compound annual growth rate (CAGR) of at least 15% is a reasonably high bar, indicating the business is expanding meaningfully rather than stagnating.
- Strong revenue growth is a key driver of long-term stock performance, as it reflects increasing demand for the company’s products or services.
- This aligns with your goal of “significant returns” by focusing on businesses whose sales base is compounding at a healthy rate.
EPS 5-Year CAGR ≥ 15%
- Purpose: Ensure earnings (not just sales) are growing robustly over time.
- Rationale:
- Earnings per share growing at 15%+ over five years indicates the company is turning that revenue growth into actual profitability for shareholders.
- EPS growth often has a strong correlation with long-term stock price appreciation, because higher earnings support higher valuations over time.
- Including both revenue and EPS growth filters favors companies with fundamentally strong and scalable business models.
Analyst Consensus: Strong Buy or Moderate Buy
- Purpose: Incorporate professional analyst sentiment to filter for names with a positive outlook.
- Rationale:
- A Strong Buy or Moderate Buy consensus suggests that the majority of covering analysts expect the stock to outperform, based on their models and research.
- While analysts are not infallible, this filter helps remove names where the professional view is neutral or negative, aligning the screen with stocks that currently have supportive institutional sentiment.
Target Price Upside Potential: AbovePrice & MoreAbovePrice
- Purpose: Focus on stocks where analysts’ target prices imply additional upside from the current level.
- Rationale:
- AbovePrice: The average or consensus target price is above the current share price, indicating analysts see some upside.
- MoreAbovePrice: An even larger gap between current price and target price, suggesting more substantial upside potential.
- This directly addresses your desire for “potential to generate significant returns” by screening for situations where, based on current research estimates, there is room for meaningful price appreciation.
Why Results Match Your Request
- The price band (45–55) ensures all candidates are truly “around $50,” matching your capital allocation preference.
- The moving average filters bias the list toward stocks already in uptrends, which historically have a higher probability of continuing to perform than those in persistent downtrends.
- The combination of strong 5-year revenue and EPS growth targets companies with proven, compounding fundamentals—critical for generating meaningful long-term returns.
- The analyst consensus (Strong/Moderate Buy) and target price upside filters add an extra layer of validation: professionals not only favor these stocks but also see additional upside from current prices.
Together, these filters don’t guarantee big returns, but they systematically narrow the universe to $50-range stocks that are growing well, trending positively, and viewed favorably by analysts with upside still projected—i.e., names that plausibly have the potential to generate significant returns.
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.