Buy

Screening Filters

1. Market Cap: 5B – 30B

   • Purpose: Find mid‑ to upper‑mid‑cap companies similar in size and risk profile to Zillow (Z).
   • Rationale:
     • Zillow’s market cap (~$11B) sits comfortably in this range.
     • This range avoids tiny, illiquid microcaps (too risky and hard to trade) while still focusing on companies that can move enough for active traders.
     • For your question “Should I buy Zillow?”, this filter makes sure any comparisons or alternatives are in a similar “tier” of company—large enough to be established, but still capable of meaningful price swings.

2. Beta: HighRisk

   • Purpose: Target high‑volatility stocks that move more than the overall market.
   • Rationale:
     • Zillow itself is a high‑beta, high‑volatility stock, which is why it was highlighted as suitable for your day‑trading style and small capital base.
     • A high‑beta filter ensures we’re looking at stocks with similar risk/return characteristics: they can drop sharply (like Z just did) but also rebound sharply—exactly the kind of behavior you’re implicitly interested in when asking whether an oversold stock like Z is a buy.

3. RSI Category: Oversold

   • Purpose: Identify stocks that, like Zillow, are technically “oversold” and may be candidates for a rebound.
   • Rationale:
     • Your previous analysis on Z emphasized its very low RSI (strongly oversold), framing it as a potential short‑term opportunity if momentum reverses.
     • Filtering for “oversold” replicates that condition: we’re focusing on stocks where recent selling pressure has been intense, which is often where active traders look for mean‑reversion trades or bounce setups—precisely the context of your Zillow question.

4. 1‑Week Price Change %: max -5%

   • Purpose: Restrict results to stocks that have dropped at least ~5% over the last week.
   • Rationale:
     • Zillow has experienced a notable short‑term pullback; this filter isolates stocks showing similar recent downside pressure.
     • Combining this with “oversold” focuses specifically on names that are not just slightly weak, but meaningfully beaten down in the near term—matching the situation that prompted your Zillow question (“it’s down hard; is that a buying chance?”).

5. Region: United States

   • Purpose: Limit to U.S. companies.
   • Rationale:
     • Zillow is a U.S. stock, and the real estate/tech context you’re focused on is U.S.‑centric.
     • Staying within the same regulatory, accounting, and macroeconomic environment makes any comparison or alternative ideas more directly relevant to your Zillow decision.

6. Exchange: XNYS, XNAS, XASE (NYSE, NASDAQ, AMEX)

   • Purpose: Ensure stocks are listed on major U.S. exchanges with better liquidity and transparency.
   • Rationale:
     • Zillow trades on NASDAQ; these exchanges tend to have tighter spreads and deeper order books—important for someone interested in active trading and risk control.
     • Filtering to major exchanges helps avoid OTC or illiquid names that might look “cheap” or “oversold” but are impractical or too risky to trade.

Why Results Match Your Zillow Question

• You asked whether to buy Z after a sharp drop and oversold signal; the filters recreate Zillow’s key traits: U.S. mid‑cap, high‑beta, oversold, and recently hit hard (≤ -5% in a week).
• As a whole, the screen is designed to surface stocks in a very similar situation to Zillow: sizeable but volatile U.S. names that have just sold off into oversold territory.
• That lets you:
  • Compare Zillow to its “peers” in terms of risk, volatility, and technical setup.
  • See if Zillow’s current condition is unique or part of a broader pattern in similar stocks.
  • Potentially find alternatives that match the same trading thesis (oversold, high‑beta rebound candidate) if you decide Z itself isn’t the best pick.