Screening Filters
Market Cap Category: large, mega
- Purpose: Focus on bigger, more established U.S. companies.
- Rationale:
- Large/mega caps (typically $10B+ and especially $20B+) tend to have more stable earnings, stronger balance sheets, and better liquidity than small caps.
- Since you asked for “one stock to invest in” rather than a high‑risk punt, this skews the search toward more mature, durable businesses.
Index Component: GSPC (S&P 500)
- Purpose: Limit candidates to S&P 500 members.
- Rationale:
- S&P 500 stocks are pre‑screened by index committees for market cap, liquidity, and profitability.
- This increases the likelihood you’re looking at well‑followed, relatively higher‑quality U.S. companies instead of obscure or illiquid names.
Listing Exchange: XNYS, XNAS, XASE (NYSE, Nasdaq, NYSE American)
- Purpose: Ensure the stocks trade on major U.S. exchanges.
- Rationale:
- Major exchanges have stricter listing standards and higher trading volumes.
- This supports better price discovery and easier trade execution when you buy or sell.
Return on Equity (ROE) ≥ 15%
- Purpose: Filter for companies that generate strong profits relative to shareholder equity.
- Rationale:
- ROE is a core measure of management effectiveness and business quality.
- A 15%+ threshold focuses on companies that are efficiently using investors’ capital, which is attractive for long‑term compounding.
Annual Revenue YoY Growth ≥ 5%
- Purpose: Require at least moderate top‑line growth.
- Rationale:
- You’re not just getting mature but stagnant companies; they must still be growing.
- Revenue growth supports future earnings growth and can justify higher valuations over time.
P/E (TTM) between 10 and 30
- Purpose: Avoid both very cheap (possibly distressed) and extremely expensive (possibly overhyped) stocks.
- Rationale:
- P/E < 10 can signal deep value, but often for a reason (cyclical downturn, structural problems).
- P/E > 30 often implies high expectations and more downside risk if growth disappoints.
- The 10–30 range targets reasonably valued, profitable companies.
Why Results Match What You Asked For
- You wanted one U.S. stock worth considering for investment:
- The filters narrow the list to high‑quality, profitable, growing S&P 500 companies on major U.S. exchanges, which is a sensible hunting ground for a single core holding.
- The combination of size (large/mega cap), quality (ROE ≥ 15%), growth (revenue ≥ 5%), and reasonable valuation (P/E 10–30) is designed to tilt toward solid, well‑established businesses with decent growth at non‑extreme prices, aligning with the idea of a stock “worth investing in” rather than a speculative bet.
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.