Find me a stock that's undervalued

Screening Filters

1. Region: United States (region: ['United States'])

   • Purpose: Restrict results to U.S.-listed companies, as requested.
   • Rationale: Ensures all candidates operate under U.S. regulatory, accounting, and market environments, directly matching “US market.”

2. Exchange: NYSE / NASDAQ / AMEX (list_exchange: ['XNYS', 'XNAS', 'XASE'])

   • Purpose: Focus on major U.S. exchanges.
   • Rationale: These exchanges host the most liquid, widely followed, and better-regulated stocks, reducing the chance of obscure or thinly traded names showing up as “undervalued” just due to illiquidity.

3. Market Capitalization ≥ $10B (market_cap: {'min': '10000000000'})

   • Purpose: Limit to large-cap companies.
   • Rationale: Larger firms usually have more stable earnings, better disclosure, and less manipulation risk. If a large, established company looks cheap, it’s more likely to be a genuine value opportunity than a micro-cap with opaque fundamentals.

4. Return on Equity (ROE) ≥ 12% (return_on_equity: {'min': '12'})

   • Purpose: Ensure the business is reasonably profitable and efficient.
   • Rationale: Undervalued doesn’t just mean “low price ratios.” You want a quality company trading at a discount. A solid ROE suggests the company generates good returns on shareholder capital and isn’t cheap solely because it’s a weak business.

5. Quarterly Revenue YoY Growth ≥ 5% (quarter_revenue_yoy_growth: {'min': '5'})

   • Purpose: Filter for companies still growing their top line.
   • Rationale: A business with at least modest revenue growth is less likely to be a value trap. This helps find stocks that are both cheap and still expanding, not ones in structural decline.

6. P/E (TTM) between 5 and 12 (pe_ttm: {'min': '5', 'max': '12'})

   • Purpose: Identify stocks with relatively low earnings multiples, but avoid extremes that may be distorted.
   • Rationale:
     • Upper bound (≤ 12): A P/E below market averages often signals potential undervaluation relative to current earnings.
     • Lower bound (≥ 5): Extremely low P/Es (e.g., <5) can indicate serious risk, accounting issues, or collapsing earnings, so this avoids the most likely value traps.

7. Price-to-Book Ratio ≤ 1.5 (pb_ratio: {'max': '1.5'})

   • Purpose: Screen for stocks trading close to or below their book value.
   • Rationale: A low P/B suggests the market price isn’t much higher than the company’s net assets on the balance sheet. Combining a low P/B with good ROE and growth is a classic value-investing approach to spotting genuinely undervalued stocks.

Why Results Match “Undervalued US Stock”

• The US-only + major exchanges filters make sure all results are from the U.S. market and investable in mainstream venues.
• Low P/E and low P/B collectively target stocks whose market prices are low relative to earnings and assets—core measures of undervaluation.
• ROE and revenue growth filters ensure these “cheap” stocks are also reasonably profitable and growing, filtering out many value traps.
• The large-cap filter biases results toward established, well-covered companies where undervaluation is more likely to be meaningful and less about illiquidity or poor disclosure.