Good stocks to invest in long term

Screening Filters

1. Market Cap ≥ $5B (market_cap: {'min': '5000000000'})

   • Purpose: Focus on larger, more established U.S. companies.
   • Rationale: For long‑term investing, bigger companies tend to have:
     • More diversified revenue streams
     • Better access to capital
     • Lower risk of permanent business failure than very small caps
       This aligns with looking for “good” long‑term holdings rather than speculative small caps.

2. Listed on Major U.S. Exchanges (list_exchange: ['XNYS', 'XNAS', 'XASE'])

   • Purpose: Limit results to U.S.-listed stocks on major exchanges (NYSE, Nasdaq, AMEX).
   • Rationale:
     • Directly matches your request for US stocks
     • Ensures higher disclosure standards, better liquidity, and tighter spreads than OTC or foreign-only listings.

3. Sector Inclusion (sector: [broad list of mainstream sectors])

   • Purpose: Allow a diversified set of industries while excluding fringe categories.
   • Rationale:
     • Covers most of the real economy: tech, healthcare, financials, industrials, consumer, energy, utilities, etc.
     • Helps you find long‑term opportunities across many areas instead of concentrating in one niche, which is sensible for long‑term investing.

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

   • Purpose: Screen for companies that generate solid profitability relative to shareholder equity.
   • Rationale:
     • ROE is a key measure of how efficiently management uses capital
     • A 12%+ ROE threshold typically filters for quality businesses with competitive advantages or strong execution, desirable traits for compounding over many years.

5. Debt-to-Equity ≤ 1 (debt_equity: {'max': '1'})

   • Purpose: Avoid highly leveraged companies.
   • Rationale:
     • Excessive debt increases bankruptcy and refinancing risk, especially across cycles
     • Capping D/E at 1 focuses on firms with more balanced capital structures that are better positioned to ride out recessions—important for long‑term holding.

6. 5‑Year Revenue CAGR ≥ 5% (revenue_5yr_cagr: {'min': '5'})

   • Purpose: Ensure the business is growing, not stagnating or shrinking.
   • Rationale:
     • Sustained revenue growth is essential for long‑term value creation
     • A 5%+ compound annual growth rate over five years suggests the company has demand tailwinds, competitive positioning, or expanding markets—not just a one‑off spike.

7. P/E (TTM) between 10 and 30 (pe_ttm: {'min': '10', 'max': '30'})

   • Purpose: Filter out both extremely cheap (possibly distressed) and extremely expensive (possibly overhyped) stocks.
   • Rationale:
     • P/E < 10 can signal deep value but also severe structural issues or cyclical troughs
     • P/E > 30 often implies high expectations and valuation risk
     • 10–30 is a “reasonable valuation” band for many quality, growing companies, aligning with buying good businesses at sensible prices for the long term.

Why Results Match Your Request

• Focus on U.S. markets: Exchange filters ensure you’re only seeing U.S.-listed stocks.
• Emphasis on quality and resilience: ROE and debt limits tilt the list toward financially strong, well‑run companies.
• Growth plus stability: The revenue growth and $5B+ market cap requirements combine growth potential with established scale.
• Reasonable valuations: The P/E band guards against paying too much for growth or falling into obvious value traps.
• Diversification-ready universe: Broad sector inclusion lets you build a diversified, long‑term portfolio from the results.