Screening Filters
Price-to-Earnings (P/E) Ratio (Trailing Twelve Months) - Max: 12:
- Purpose: To identify undervalued stocks based on their earnings relative to their price.
- Rationale: A low P/E ratio (below 12) suggests that the stock is trading at a lower price relative to its earnings, which is a common indicator of undervaluation. This filter helps narrow down stocks that may be overlooked or underpriced by the market.
Price-to-Book (P/B) Ratio - Max: 1.2:
- Purpose: To find stocks trading close to or below their book value, which is another measure of undervaluation.
- Rationale: A P/B ratio below 1.2 indicates that the stock is priced near or below the company's net asset value, which can signal that the stock is undervalued relative to its intrinsic worth.
Dividend Yield (Trailing Twelve Months) - Min: 4%:
- Purpose: To focus on stocks that provide a strong dividend yield, appealing to income-focused investors.
- Rationale: A dividend yield of at least 4% ensures that the selected stocks offer a higher-than-average return through dividends, making them attractive for dividend-focused investors seeking consistent income.
Earnings Per Share (EPS) (Trailing Twelve Months) - Min: 0:
- Purpose: To ensure that the selected stocks are profitable.
- Rationale: A positive EPS indicates that the company is generating earnings, which is a fundamental requirement for sustainable dividend payments and long-term growth. This filter excludes companies that are currently unprofitable.
Market Capitalization - Min: $2 billion:
- Purpose: To focus on established companies with a significant market presence.
- Rationale: A minimum market cap of $2 billion ensures that the selected stocks belong to mid-cap or larger companies, which are generally more stable and less risky than smaller-cap stocks. This aligns with the user's interest in reliable investments, such as undervalued or dividend-paying stocks.
Why Results Match:
- The filters collectively target undervalued stocks by focusing on low valuation metrics (P/E and P/B ratios), ensuring that the stocks are trading at attractive prices relative to their earnings and assets.
- The inclusion of a minimum dividend yield ensures that the results also cater to dividend-focused investors, providing a steady income stream.
- By requiring a positive EPS, the filters ensure that only profitable companies are included, reducing the risk of selecting financially unstable firms.
- The market cap filter ensures that the results focus on established companies, which are more likely to sustain their dividends and offer long-term value.
These filters are well-suited to the user's query, as they prioritize undervalued stocks, dividend-paying companies, and financial stability, aligning with the user's interest in finding the "most and best undervalued stocks or ETFs or dividend stocks."
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.