Best oil stock to buy

Screening Filters

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

   • Purpose: Focus on large, established oil companies.
   • Rationale: When someone asks for the “best” oil-related stock, they’re usually looking for stability, liquidity, and lower business risk relative to small caps. A $10B+ market cap filter targets major integrated oil companies, large E&Ps, and leading service firms rather than speculative juniors.

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

   • Purpose: Ensure the stock is in a longer-term uptrend or at least not in a prolonged downtrend.
   • Rationale: A 200-day moving average is a common line between bullish and bearish regimes. Requiring price > 200DMA filters out many structurally weak or falling names, aligning with the idea of “best to buy now” rather than catching deep value falling knives.

3. Sector: Energy / Fossil Fuels ('sector': ['Energy', 'Energy - Fossil Fuels'])

   • Purpose: Restrict the universe to traditional oil & gas businesses.
   • Rationale: The user asked for “oil-related” stocks. Selecting the Energy and Fossil Fuels sectors ensures we’re not mixing in renewables, utilities, or broader industrials that only have indirect exposure. It keeps results tightly focused on oil & gas producers, refiners, transporters, and related services.

4. Theme: Oil Sector ('themes': ['Oil sector'])

   • Purpose: Further refine to companies whose primary business is oil rather than general energy.
   • Rationale: Some Energy companies are heavily weighted toward gas, power generation, or midstream infrastructure with limited oil price sensitivity. The “Oil sector” theme focuses on names whose fundamentals and share prices are more directly tied to crude oil markets, matching the user’s earlier interest in oil itself.

5. Net Margin ≥ 10% ('net_margin': {'min': '10'})

   • Purpose: Screen for reasonably profitable, operationally efficient companies.
   • Rationale: A double-digit net margin in a cyclical, capital-intensive sector like oil signals cost discipline, scale advantages, or favorable asset quality. For someone asking for the “best” stock, it makes sense to filter out structurally low-margin or marginal producers.

6. P/E (TTM) Between 5 and 18 ('pe_ttm': {'min': '5', 'max': '18'})

   • Purpose: Avoid both ultra-expensive and potentially distressed/value-trap names.
   • Rationale:
     • Lower bound (≥5): Extremely low P/Es (e.g., <5) can indicate the market expects earnings to fall sharply (cyclical peak) or questions the sustainability of profits.
     • Upper bound (≤18): A cap helps avoid overpaying for growth or hype in a cyclical sector where high multiples can quickly compress if oil prices soften.
       This range targets “reasonable value” – a common criterion when looking for the “best” risk/reward in mature cyclicals like oil.

7. Dividend Yield ≥ 3% ('dividend_yield_ttm': {'min': '3'})

   • Purpose: Select companies that return a meaningful amount of cash to shareholders.
   • Rationale: Many investors in oil majors seek reliable income along with commodity exposure. A ≥3% yield signals a shareholder-friendly capital allocation policy and some level of balance sheet strength (since fragile firms struggle to sustain dividends). This fits well with a “best to own” framing rather than pure speculation.

Why These Results Match the User’s Request

• The sector and theme filters tightly constrain the universe to oil-focused energy companies, directly aligning with “oil-related stock.”
• The market cap, profitability, and P/E filters tilt toward large, profitable, reasonably valued businesses, which are more plausible candidates for “best” core holdings rather than risky trades.
• The price above 200-day moving average filter emphasizes names with supportive price trends, consistent with something you’d consider buying now rather than turnaround gambles.
• The dividend yield filter adds an income and quality component, a common requirement for investors seeking a “best in class” oil stock to hold, not just a short-term bet.

Together, these filters narrow the field to sizable, oil-centric companies that are profitable, not obviously overvalued, trending positively, and paying shareholders – a sensible interpretation of what “the best oil-related stock to buy” typically implies.