AI Earning Prediction

Screening Filters

1. Market Cap: 1,000,000,000 – 20,000,000,000 (USD)

   • Purpose: Focus on mid-cap companies rather than tiny startups or huge mega-caps.
   • Rationale:
     • The user is asking about earnings for the company “AI” (C3.ai, ticker: AI), which is a mid-cap stock.
     • Limiting the screen to roughly similar-sized companies helps identify peers with comparable business and earnings dynamics (growth stage, risk profile, institutional coverage).
     • Very small caps often have erratic earnings and poor disclosure; very large caps have very different earnings behavior and expectations.

2. Monthly Average Dollar Volume ≥ 1,000,000 (USD)

   • Purpose: Ensure the stocks are reasonably liquid, actively traded names.
   • Rationale:
     • For an earnings prediction to be meaningful for most investors, the stock should be actively followed and traded; illiquid names often have sparse analyst coverage and unreliable expectations.
     • C3.ai itself is actively traded, and requiring a minimum dollar volume aligns the universe with that type of stock and supports using market-based signals (e.g., pre-earnings price/volume behavior, options pricing).

3. Themes: “AI Beneficiary”

   • Purpose: Restrict the universe to companies whose business is directly or significantly impacted by artificial intelligence.
   • Rationale:
     • The ticker “AI” is an AI-focused software company. To think about its earnings, it’s useful to compare it to other companies that benefit from AI trends (infrastructure, software, services).
     • AI-related companies tend to share similar growth narratives, margin structures, and cyclicality of demand, which is highly relevant when forming or benchmarking an earnings view.
     • This theme filter ensures the screened set is contextually aligned with the user’s interest in an AI-focused earnings story.

4. List Exchange: XNYS, XNAS, XASE (NYSE, NASDAQ, NYSE American)

   • Purpose: Limit results to major U.S. exchanges.
   • Rationale:
     • C3.ai trades on the NYSE (XNYS); focusing on these exchanges ensures consistent reporting standards (SEC filings), earnings calendars, and analyst coverage.
     • U.S.-listed AI beneficiaries are more directly comparable in terms of accounting standards, disclosure quality, and investor expectations—all important for making and validating an earnings prediction.

5. Price-to-Sales (P/S) Ratio: 2 – 30

   • Purpose: Filter to stocks with “normal” to elevated growth valuations, but exclude extreme outliers on both sides.
   • Rationale:
     • AI companies, including C3.ai, typically trade on sales-based multiples rather than traditional earnings metrics, especially if they are not yet consistently profitable.
     • A lower bound of 2 removes distressed or very low-expectation names, which may not resemble the growth profile of AI.
     • An upper bound of 30 avoids the most speculative or bubble-like valuations, where earnings expectations are often disconnected from fundamentals, making peer comparison less useful.
     • This creates a more reasonable peer set for thinking about what kind of revenue growth and margin trajectory the market tends to reward at earnings time.

6. Is Optionable: True

   • Purpose: Require that options are listed on the stock.
   • Rationale:
     • C3.ai has listed options and an active options market.
     • Optionable stocks tend to be more institutionally followed, with richer information from implied volatility and options positioning around earnings.
     • If one uses options data (e.g., implied move into earnings) as part of forecasting or gauging market expectations, having only optionable names makes that kind of analysis feasible and comparable.

Why Results Match the User’s Query

• The user is asking for an earnings prediction for “AI”. While the filters are not needed to find that specific ticker, they are helpful to:

  • Anchor C3.ai within a peer group of similar AI-related, mid-cap, U.S.-listed, liquid, growth-valued companies, which is crucial for benchmarking its earnings outlook.
  • Ensure the comparison set consists of tradable, widely followed AI beneficiaries where earnings expectations, valuation, and market reactions provide meaningful context.

• Collectively, the filters create a universe that:

  • Mirrors C3.ai’s size, liquidity, sector/theme, and valuation regime,
  • Operates under similar reporting standards and investor expectations,
  • And supports market-based analysis (via volume and options data), which can all inform and refine an earnings view for the specific company “AI.”