Screening Filters
region: ['US']
- Purpose: To focus on companies listed in the United States.
- Rationale: The user specifically requested U.S.-listed companies, so this filter ensures that only stocks from the U.S. market are included in the results.
target_price_upside_potential: ['MoreAbovePrice']
- Purpose: To identify stocks with the highest potential for price appreciation over the investment horizon.
- Rationale: The user is looking for companies with significant upside potential over a 6-year period. This filter prioritizes stocks with a higher target price relative to their current price, indicating greater potential for long-term growth.
eps_5yr_cagr: {'min': '15'}
- Purpose: To focus on companies with strong historical earnings growth.
- Rationale: A minimum 5-year compound annual growth rate (CAGR) of 15% for earnings per share (EPS) ensures that only companies with a proven track record of consistent and robust earnings growth are included. This aligns with the user's request for long-term investment opportunities, as earnings growth is a key driver of stock price appreciation.
revenue_5yr_cagr: {'min': '10'}
- Purpose: To include companies with strong historical revenue growth.
- Rationale: A minimum 5-year CAGR of 10% for revenue ensures that the companies selected have demonstrated consistent top-line growth, which is a critical indicator of business expansion and sustainability over the long term.
return_on_equity: {'min': '15'}
- Purpose: To focus on companies with efficient use of shareholder equity.
- Rationale: A minimum return on equity (ROE) of 15% ensures that the companies selected are generating strong returns on their invested capital, which is a sign of financial health and operational efficiency. This is particularly important for long-term investors seeking sustainable growth.
market_cap: {'min': '1000000000'}
- Purpose: To filter out smaller, potentially riskier companies and focus on more established firms.
- Rationale: A minimum market capitalization of $1 billion ensures that the results include companies with a certain level of stability and market presence, reducing the risk associated with smaller, less established firms. This aligns with the user's long-term investment horizon.
Why Results Match:
- The filters collectively address the user's request for U.S.-listed companies with the most upside potential for a 6-year investment horizon by focusing on key growth metrics (EPS and revenue CAGR), financial efficiency (ROE), and market stability (market cap).
- The target_price_upside_potential filter directly aligns with the user's request for stocks with significant upside potential, ensuring that the selected companies have a higher probability of price appreciation.
- The combination of growth, profitability, and stability metrics ensures that the selected companies are not only poised for growth but also have a strong foundation to sustain it over the long term.
Note: While the filters used are highly effective in identifying companies with strong upside potential, the exact percentage upside potential over 6 years cannot be guaranteed or precisely estimated due to the inherent uncertainties of the stock market. However, the applied filters maximize the likelihood of identifying companies with favorable long-term growth prospects.
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.