Screening Filters
Return on Equity (ROE) ≥ 15%:
- Purpose: To identify companies that are efficiently generating profits relative to shareholders' equity.
- Rationale: A high ROE indicates that the company is effectively using its equity base to generate returns, which is a sign of strong financial performance and profitability. This aligns with the user's goal of finding stocks with the potential to generate gains.
Revenue 5-Year CAGR (Compound Annual Growth Rate) ≥ 10%:
- Purpose: To focus on companies with consistent and strong revenue growth over the past five years.
- Rationale: Companies with a high revenue growth rate are often expanding their market share or benefiting from favorable industry trends. This growth can translate into higher stock prices over time, making them attractive for investors seeking gains.
Debt-to-Equity Ratio ≤ 0.5:
- Purpose: To filter for companies with low levels of debt relative to their equity.
- Rationale: A low debt-to-equity ratio indicates financial stability and reduces the risk of financial distress. Companies with manageable debt levels are better positioned to sustain growth and profitability, which supports the user's goal of finding reliable investment opportunities.
Weekly Average Turnover ≥ 1,000,000:
- Purpose: To ensure the selected stocks have sufficient liquidity for easy buying and selling.
- Rationale: High average turnover indicates that the stock is actively traded, reducing the risk of illiquidity. This is important for investors who may need to enter or exit positions efficiently without significantly impacting the stock price.
Why Results Match:
- The filters collectively focus on identifying financially strong, growing, and stable companies with high profitability (ROE ≥ 15%) and consistent revenue growth (5-Year CAGR ≥ 10%). These characteristics increase the likelihood of finding stocks that can generate returns for investors.
- By including a low debt-to-equity ratio (≤ 0.5), the screener ensures that the selected companies are not overly burdened by debt, reducing financial risk.
- The liquidity filter (weekly average turnover ≥ 1,000,000) ensures that the stocks are actively traded, making them practical for investment and reducing the risk of being stuck in illiquid positions.
These filters are well-suited to the user's query of finding stocks with the potential to "make money" by focusing on companies with strong fundamentals, growth potential, and market liquidity.
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.