What is a good cheap stock to buy right now for the long term

Screening Filters

1. Market Cap: {'max': '2000000000'}

   • Purpose: To identify small-cap stocks.
   • Rationale: Small-cap stocks often have higher growth potential over the long term compared to larger companies. By setting a maximum market cap of $2 billion, the screener focuses on smaller companies that may be undervalued or have room for significant growth, aligning with the user's interest in long-term investments.

2. P/E Ratio (Trailing Twelve Months): {'max': '15'}

   • Purpose: To find stocks that are relatively undervalued based on their earnings.
   • Rationale: A P/E ratio below 15 is often considered a benchmark for value investing. This filter ensures that the selected stocks are not overpriced relative to their earnings, which is crucial for long-term investors seeking to maximize returns while minimizing downside risk.

3. Revenue 5-Year CAGR: {'min': '10'}

   • Purpose: To identify companies with consistent and strong revenue growth over the past five years.
   • Rationale: A minimum revenue compound annual growth rate (CAGR) of 10% ensures that the selected companies have demonstrated the ability to grow their top line consistently. This is a key indicator of a company's potential to sustain growth over the long term, which aligns with the user's investment horizon.

4. Dividend Yield (Trailing Twelve Months): {'min': '2'}

   • Purpose: To include stocks that provide a steady income stream through dividends.
   • Rationale: A minimum dividend yield of 2% ensures that the selected stocks offer a reasonable return through dividends, which can be reinvested to compound returns over time. This is particularly attractive for long-term investors who value both growth and income.

Why Results Match:

• Focus on Long-Term Growth: The combination of small-cap stocks with strong revenue growth ensures that the screener identifies companies with significant potential for appreciation over time. These companies are often in the early stages of their growth cycle, making them suitable for long-term investment strategies.
• Value-Oriented Approach: The P/E ratio filter ensures that the selected stocks are not overvalued, which is critical for long-term investors looking to buy and hold at reasonable prices.
• Income Component: The dividend yield filter adds an income-generating aspect to the portfolio, which can enhance total returns over the long term through reinvestment.
• Balanced Risk and Reward: By combining growth, value, and income filters, the screener provides a balanced approach to identifying stocks that are both affordable and have the potential for long-term success.

These filters collectively address the user's query by narrowing down the universe of stocks to those that are cheap (low P/E), have growth potential (high revenue CAGR), and provide income (dividends), while focusing on smaller companies that may offer outsized returns over the long term.