AI Stock Picker

Screening Filters

1. Market Cap ≥ $20B (market_cap: {min: 20000000000})

   • Purpose: Focus on large, established companies rather than small, speculative names.
   • Rationale:
     • An “AI stock picker” is typically expected to surface higher‑quality, more stable businesses, not lottery‑ticket micro caps.
     • Large caps tend to have better liquidity (easier to trade), more analyst coverage, and more reliable financial data, which makes any AI‑driven or rules‑based approach more robust.
     • This reduces the chance of extreme volatility or company‑specific blow‑ups that are more common in small caps.

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

   • Purpose: Select stocks in a confirmed longer‑term uptrend.
   • Rationale:
     • The 200‑day moving average is a widely watched indicator of a stock’s long‑term trend. Price above this level suggests the market currently favors the stock.
     • An AI or systematic picker often blends fundamentals with trend-following logic to avoid stocks that are “cheap for a reason” and stuck in persistent downtrends.
     • This filter helps bias the list toward names where price action confirms the fundamental story.

3. Return on Equity ≥ 12% (return_on_equity: {min: 12})

   • Purpose: Ensure the companies are efficiently generating profits from shareholders’ capital.
   • Rationale:
     • ROE is a core quality metric; ≥ 12% is often used as a cutoff for “above-average” profitability.
     • For an AI stock picker aiming for strong long‑term candidates, high ROE helps identify well‑run businesses with competitive advantages and solid business models.
     • It filters out many low‑quality, capital‑inefficient companies that might otherwise screen cheap but underperform.

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

   • Purpose: Target reasonably valued, but not distressed or extremely overvalued, companies.
   • Rationale:
     • Lower bound (≥ 12) helps avoid ultra‑low P/E “value traps” where the market discounts the stock because of serious underlying issues.
     • Upper bound (≤ 30) avoids the most aggressively priced stocks where high expectations are already fully baked in, raising the risk of multiple compression.
     • This range typically captures solid, quality companies with a balance of growth and value, a sensible zone for an AI‑style, risk‑aware stock selection.

Why Results Match:

• Together, these filters look for large, established companies that are:

  • Profitable and high quality (ROE ≥ 12%),
  • In a positive price trend (above 200‑day MA), and
  • Not extremely mispriced in either direction (P/E in a moderate range).

• This combination is consistent with what many investors expect from an “AI stock picker”: a systematic way to narrow the universe to liquid, fundamentally strong, technically healthy, and reasonably valued stocks, rather than speculative or purely “hot tip” names.