Applied aerospace a d defence

Screening Filters

1. Market Cap Category: Mid, Large

   • Purpose: Focus on established aerospace and defense companies.
   • Rationale: “Applied Aerospace & Defense” typically points to companies with meaningful scale, operating history, and more stable financial reporting. Mid- and large-cap stocks are more likely to have the resources, contracts, and balance sheet strength relevant to this industry.

2. Price / Volume: Not specified

   • Purpose: No additional liquidity or share-price constraints were imposed.
   • Rationale: This keeps the screen broad within the aerospace and defense theme, avoiding unnecessary exclusion of relevant names.

3. Moving Average Relationship: Price Above MA200

   • Purpose: Screen for stocks in long-term uptrends.
   • Rationale: If the user wants an actionable analysis of aerospace and defense stocks, filtering for names trading above their 200-day moving average helps favor technically stronger companies with positive market momentum.

4. Industry: Aerospace & Defense

   • Purpose: Directly target the requested sector/theme.
   • Rationale: This is the core filter that ensures the results are actually in the aerospace and defense space, rather than unrelated industrial or manufacturing companies.

5. Quarter Revenue YoY Growth: Min 0%

   • Purpose: Require at least non-negative revenue growth.
   • Rationale: In a capital-intensive and contract-driven industry like aerospace and defense, positive revenue growth suggests demand, backlog conversion, or contract wins. It helps exclude companies with shrinking top lines.

6. P/E TTM: Max 30

   • Purpose: Avoid overly expensive stocks on earnings.
   • Rationale: Aerospace and defense firms can trade at premium multiples, but a cap of 30 helps keep the screen focused on companies that are still reasonably valued relative to earnings.

7. EV/EBITDA: Max 20

   • Purpose: Add another valuation check using enterprise value.
   • Rationale: EV/EBITDA is useful for comparing companies with different capital structures. A max of 20 filters out names that may be stretched on an operating basis.

8. Is Optionable: True

   • Purpose: Keep only stocks with listed options.
   • Rationale: Optionable stocks are generally more liquid and more widely followed. This can matter for investors who want to hedge, generate income, or express a view with options.

9. Analyst Consensus: Strong Buy, Moderate Buy, Hold

   • Purpose: Focus on names with neutral to positive analyst coverage.
   • Rationale: This filter excludes clearly disliked stocks while still allowing stocks that are fairly valued or in transition. In aerospace and defense, analyst sentiment often reflects contract visibility, margin trends, and defense spending expectations.

10. Target Price Upside Potential: AbovePrice, MoreAbovePrice

• Purpose: Prioritize stocks where analysts see upside from current levels.
• Rationale: This adds a forward-looking valuation and sentiment overlay, helping surface aerospace and defense names that may have room to outperform.

Why Results Match:

• The screen is tightly aligned to Aerospace & Defense, so the results are directly relevant to the user’s query.
• The mid/large-cap and optionable filters favor stocks that are more established, liquid, and investable.
• The Price Above MA200 condition selects companies with positive long-term technical momentum.
• The revenue growth filter ensures the businesses are still expanding, not just operating in a stagnant environment.
• The valuation caps on P/E and EV/EBITDA help avoid overpaying for defense exposure.
• The analyst consensus and target upside filters further tilt the screen toward names with supportive Street views and potential upside.

Overall, these filters are appropriate because they combine industry relevance, growth, valuation discipline, technical strength, and analyst support to identify the most attractive applied aerospace and defense stocks.