Focus on growth and value

Screening Filters

1. Price (max: $5):

   • Purpose: To identify stocks that are priced under $5 per share.
   • Rationale: The user specifically requested stocks under $5, which makes this filter essential to narrow down the search to affordable stocks that meet their budget criteria.

2. P/E TTM (max: 15):

   • Purpose: To focus on value stocks that are relatively undervalued compared to their earnings.
   • Rationale: A low price-to-earnings (P/E) ratio, such as under 15, is often used to identify value stocks. This aligns with the user's request to focus on "value," as it helps screen for companies that may be trading at a discount relative to their earnings.

3. Revenue 5-Year CAGR (min: 15%):

   • Purpose: To identify companies with strong historical revenue growth over the past five years.
   • Rationale: A compound annual growth rate (CAGR) of at least 15% indicates that the company has demonstrated consistent and significant growth in revenue. This aligns with the user's request to focus on "growth," as it highlights companies with a proven track record of expanding their business.

4. Market Cap (min: $500 million):

   • Purpose: To filter out very small or micro-cap companies and focus on more established businesses.
   • Rationale: Companies with a market capitalization of at least $500 million are generally more stable and less risky than smaller companies. This ensures that the results include stocks that are more likely to sustain long-term growth and value, aligning with the user's focus on both growth and value.

Why Results Match:

• The combination of the price filter ensures affordability, while the P/E ratio filter identifies undervalued stocks, addressing the "value" aspect of the user's query.
• The revenue growth filter ensures that the stocks have a strong historical growth trajectory, addressing the "growth" aspect of the user's query.
• The market cap filter ensures that the results focus on more established companies, which are more likely to provide sustainable growth and value over the long term.

By combining these filters, the screener effectively narrows down the universe of stocks to those that meet the user's criteria for affordability, growth potential, and value, while also ensuring a degree of stability and reliability.