Best stock to own

Screening Filters

1. Market Capitalization (market_cap: min $10 billion):

   • Purpose: To focus on large-cap companies with a market capitalization of at least $10 billion.
   • Rationale: Large-cap companies are typically more stable, well-established, and less volatile compared to smaller companies. These characteristics make them more suitable for long-term ownership, aligning with the user's query for the "best stock to own."

2. Price-to-Earnings Ratio (pe_ttm: max 20):

   • Purpose: To identify stocks that are reasonably valued based on their earnings.
   • Rationale: A P/E ratio below 20 suggests that the stock is not overly expensive relative to its earnings, which is important for finding fundamentally sound investments. This ensures the user is not overpaying for growth or stability.

3. Dividend Yield (dividend_yield_ttm: min 2%):

   • Purpose: To include stocks that provide a minimum dividend yield of 2%.
   • Rationale: Dividends are a sign of financial health and shareholder returns. A minimum yield of 2% ensures that the stock provides a steady income stream, which is attractive for long-term ownership and aligns with the idea of a "best stock to own."

4. Earnings Per Share 5-Year Compound Annual Growth Rate (eps_5yr_cagr: min 10%):

   • Purpose: To focus on companies with strong historical earnings growth over the past five years.
   • Rationale: A minimum EPS growth rate of 10% indicates that the company has been consistently growing its profitability, which is a key factor for long-term investment success. This filter ensures the selected stocks have a track record of sustainable growth.

Why Results Match:

• The filters collectively focus on large, stable companies with a history of profitability and growth, which are characteristics of high-quality stocks suitable for long-term ownership.
• By combining reasonable valuation (P/E ratio), income generation (dividend yield), and growth potential (EPS growth), the filters aim to identify stocks that balance stability, income, and growth—key attributes of the "best stock to own."
• The emphasis on large-cap stocks ensures that the results are from well-established companies, reducing the risk associated with smaller or speculative investments.