AI Stock Picker

Screening Filters

1. Market Cap ≥ $10B ('market_cap': {'min': '10000000000'})

   • Purpose: Focus on larger, more established companies.
   • Rationale:
     • A professional “AI stock picker” typically starts with a universe of liquid, widely followed names to reduce idiosyncratic risk and avoid very small, speculative stocks.
     • Large caps tend to have stronger balance sheets, better access to capital, and resources to invest in technology and AI initiatives—key if you’re looking for durable growth stories.

2. Price Above 200-Day Moving Average ('moving_average_relationship': ['PriceAboveMA200'])

   • Purpose: Ensure the stock is in a longer-term uptrend.
   • Rationale:
     • A 200-day moving average is a classic trend indicator; price above it usually signals positive market sentiment and a favorable technical setup.
     • For an “AI stock picker” approach, this adds a simple momentum/trend filter to avoid names in clear downtrends, even if the fundamentals look good.

3. Net Margin ≥ 12% ('net_margin': {'min': '12'})

   • Purpose: Select solidly profitable, high-quality businesses.
   • Rationale:
     • Net margin shows how much profit remains after all expenses. A 12%+ threshold screens for companies with good pricing power, operational efficiency, and/or strong competitive positions.
     • In the context of AI-focused investing, profitable firms are better positioned to fund ongoing R&D, data infrastructure, and AI investments without constantly relying on external financing.

4. 5-Year Revenue CAGR ≥ 15% ('revenue_5yr_cagr': {'min': '15'})

   • Purpose: Target companies with strong and sustained growth.
   • Rationale:
     • A 15%+ compound annual growth rate over five years is robust and indicates a genuine growth business, not a one-year spike.
     • This aligns well with an “AI stock picker” concept: AI-oriented or AI-beneficiary companies are often in secular growth areas, so consistent top-line expansion is a key signal.

5. P/E (TTM) Between 12 and 30 ('pe_ttm': {'min': '12', 'max': '30'})

   • Purpose: Keep valuations within a “reasonable growth” band.
   • Rationale:
     • A P/E below 12 may signal distressed or low-growth companies, which often don’t fit an AI/growth-oriented thesis.
     • A P/E above 30 can indicate very high expectations and potentially frothy valuations, which can be vulnerable to sharp corrections.
     • The 12–30 range aims to balance growth exposure with valuation discipline—consistent with a systematic, AI-style approach that avoids extremes.

Why Results Match the “AI Stock Picker” Idea

• Quality + Growth Foundation: High net margins and strong 5-year revenue growth focus on fundamentally strong, expanding businesses—typical inputs to quantitative/AI models that look for durable earnings and growth.
• Risk Control via Size and Valuation: The large-cap and mid-range P/E filters help reduce exposure to highly speculative, illiquid, or massively overvalued names, which an AI-based process would often penalize.
• Trend Alignment: Requiring price above the 200-day moving average hard-codes a basic momentum bias, a common factor used in quantitative and AI-driven strategies to tilt toward stocks with positive price action.

Together, these filters approximate what a disciplined, data-driven “AI stock picker” might favor: large, profitable, fast-growing companies in established uptrends, trading at valuations that are elevated enough to reflect growth but not extreme.