Good stocks

Screening Filters

1. Return on Equity (ROE) ≥ 15%:

   • Purpose: To identify companies that are efficiently generating profits from shareholders' equity.
   • Rationale: A high ROE indicates strong financial performance and effective management, which are often characteristics of "good stocks." Setting a minimum of 15% ensures that only companies with above-average profitability are included.

2. Annual Revenue YoY Growth ≥ 10%:

   • Purpose: To focus on companies with consistent and strong revenue growth.
   • Rationale: Revenue growth is a key indicator of a company's ability to expand its business and capture market share. A minimum of 10% ensures that the selected companies are growing at a healthy pace, which is often a sign of a thriving business.

3. P/E Ratio (TTM) ≤ 20:

   • Purpose: To find stocks that are reasonably valued relative to their earnings.
   • Rationale: A lower P/E ratio suggests that a stock may be undervalued or fairly priced, making it more attractive to value investors. By capping the P/E ratio at 20, the filter excludes overvalued stocks while still allowing for growth-oriented companies.

4. Dividend Yield (TTM) ≥ 2%:

   • Purpose: To include companies that provide a steady income stream through dividends.
   • Rationale: A dividend yield of at least 2% ensures that the selected stocks offer a reasonable return to investors in the form of dividends, which is often a sign of financial stability and shareholder-friendly policies.

Why Results Match:

• The filters collectively aim to identify "good stocks" by balancing profitability, growth, valuation, and income generation.
• Companies with high ROE and revenue growth are likely to have strong fundamentals, while a reasonable P/E ratio ensures that these stocks are not overpriced.
• The inclusion of a minimum dividend yield adds an additional layer of attractiveness by focusing on companies that reward shareholders with consistent payouts.
• Together, these criteria help screen for stocks that are fundamentally strong, reasonably valued, and capable of delivering both growth and income, aligning well with the user's request for "good stocks."