Best left to buy now

Screening Filters

1. PriceAboveMA200 (Price above 200-day moving average)

   • Purpose: Focus on stocks in a longer-term uptrend rather than those trending down or stuck in weak ranges.
   • Rationale: For “best to buy now,” many investors prefer names with positive price momentum and technical strength. Trading above the 200-day moving average is a widely used signal that the market, on average, is valuing the stock higher than over the past ~9–10 months, suggesting underlying demand and reducing the chance you’re buying into a major downtrend.

2. is_index_component: GSPC (S&P 500), NDX (Nasdaq-100)

   • Purpose: Limit the universe to large, established companies that are already components of major U.S. indices.
   • Rationale: The S&P 500 and Nasdaq-100 contain many of the most liquid, widely followed, and fundamentally sound companies. When someone asks for the “best to buy now,” they are often looking for higher-quality, relatively lower-risk names rather than tiny or speculative stocks. This filter helps ensure:
     • Better liquidity (easier to get in and out).
     • Higher disclosure and analyst coverage.
     • Generally more stable business models compared to microcaps.

3. eps_5yr_cagr: min 5% (Earnings per share 5-year compound annual growth rate ≥ 5%)

   • Purpose: Require a track record of real earnings growth over time.
   • Rationale: Sustainable earnings growth is a core driver of long-term stock performance. By demanding at least 5% annualized EPS growth over the past five years:
     • You avoid companies with flat or shrinking profits.
     • You tilt toward businesses that are expanding, gaining market share, or improving margins. This lines up with the idea of “best to buy now” as companies that aren’t just hyped but actually growing.

4. pe_ttm: 8–35 (Price/Earnings, trailing 12 months between 8 and 35)

   • Purpose: Filter out extremely cheap (possibly distressed) and extremely expensive (possibly overhyped) valuations.
   • Rationale: A PE below 8 can sometimes indicate serious problems (cyclical collapse, market pessimism), while a PE above 35 can signal very high expectations and higher downside risk if growth slows. By staying within 8–35:
     • You aim for a balance of reasonable valuation and growth.
     • You reduce exposure to deep-value “value traps” and ultra-high-multiple momentum names that may be fragile.

5. analyst_consensus: Strong Buy, Moderate Buy

   • Purpose: Include only stocks that Wall Street analysts currently rate positively.
   • Rationale: While analyst opinions aren’t guarantees, they:
     • Reflect professional assessments of fundamentals, earnings outlook, and risks.
     • Often incorporate management guidance, industry trends, and valuation work.
       For a user asking “best to buy now,” this adds an external, current sentiment filter—favoring companies where experts see upside rather than those rated “Hold” or “Sell.”

Why Results Match the Question “Which stocks are the best to buy now?”

• The screen combines technical strength (price above 200-day MA) with fundamental quality and growth (positive 5-year EPS CAGR, reasonable PE range).
• Restricting to major index members (S&P 500, Nasdaq-100) leans toward larger, more stable, liquid names, which many investors associate with “best” ideas for new capital.
• The analyst consensus filter adds a layer of current professional endorsement, aligning with the idea of “best to buy now” rather than just “good companies in general.”

Together, these filters aim to surface established, growing, reasonably valued stocks in uptrends, that are also regarded positively by analysts—an evidence-based approximation of “best to buy now” without pretending to predict guaranteed winners.