Looking good small stocks i can trde

Screening Filters

1. Market Capitalization: 300M – 3B USD (market_cap)

   • Purpose: Target small-cap companies.
   • Rationale:
     • In US equity classification, small caps commonly fall in the roughly $300M–$3B range.
     • This band avoids very tiny micro-caps (often riskier, illiquid) while still focusing on smaller, higher-growth potential companies vs. mid/large caps.

2. Minimum Liquidity: Monthly Average Dollar Volume ≥ 500,000 USD (monthly_average_dollar_volume)

   • Purpose: Ensure the stocks are reasonably tradable in the US market.
   • Rationale:
     • A minimum of $500k traded per month filters out extremely illiquid names where entering/exiting positions can be hard or costly due to wide bid-ask spreads.
     • This supports your goal of being able to “trade” these stocks rather than just hold illiquid positions.

3. US Major Exchanges Only: NYSE, NASDAQ, NYSE American (list_exchange: XNYS, XNAS, XASE)

   • Purpose: Restrict to stocks listed on major US exchanges.
   • Rationale:
     • Ensures you’re looking at US-listed companies, aligning with “trade in the US market.”
     • Excludes OTC and pink sheet securities, which often have lower reporting standards and liquidity.

4. Positive Earnings: EPS (TTM) ≥ 0 (eps_ttm)

   • Purpose: Focus on companies that are at least breaking even or profitable.
   • Rationale:
     • “Good” small caps are often those that have moved beyond persistent losses.
     • Requiring non-negative earnings eliminates many speculative or early-stage companies that may not yet have a clear path to profitability.

5. Healthy Profitability: Net Margin ≥ 8% (net_margin)

   • Purpose: Filter for businesses with solid profit margins.
   • Rationale:
     • A minimum 8% net margin suggests the company can convert revenue into actual profit, not just sales volume.
     • This helps distinguish stronger operators from low-quality, thin-margin businesses.

6. Efficient Use of Equity: ROE ≥ 10% (return_on_equity)

   • Purpose: Identify companies generating attractive returns on shareholders’ capital.
   • Rationale:
     • ROE of at least 10% is a common benchmark for “quality” — the business is relatively efficient at turning equity into profits.
     • This aligns with the idea of “good” small caps, not just any small company.

7. Growth Filter (Short Term): Quarterly Revenue YoY Growth ≥ 10% (quarter_revenue_yoy_growth)

   • Purpose: Require recent revenue growth.
   • Rationale:
     • A minimum 10% year-over-year revenue increase in the latest quarter points to companies that are currently expanding their business.
     • This avoids stagnating or shrinking businesses and tilts the list toward growth-oriented small caps.

8. Growth Filter (Longer Term): Annual Revenue YoY Growth ≥ 10% (annual_revenue_yoy_growth)

   • Purpose: Ensure that growth is not just a one-quarter anomaly.
   • Rationale:
     • Requires the company to have grown revenue at least 10% over the past year as a whole.
     • Supports a more consistent growth profile, which improves the quality of candidates.

9. Reasonable Valuation: P/E (TTM) between 8 and 30 (pe_ttm)

   • Purpose: Exclude extremely cheap (possibly distressed) and extremely expensive (possibly overhyped) stocks.
   • Rationale:
     • P/E < 8 can sometimes indicate underlying problems or cyclical issues; this filter reduces exposure to potential value traps.
     • P/E > 30 can indicate very high expectations or speculative pricing; capping at 30 focuses on names with more grounded valuations for their earnings level.

Why Results Match Your Request

• Small-cap focus: The market cap range directly targets the small-cap segment.
• US tradability: Exchange selection plus a liquidity filter ensures you’re getting US-listed stocks that are actually practical to trade.
• “Good” quality: Positive earnings, healthy margins, solid ROE, and double-digit revenue growth (quarterly and annual) all tilt the results toward fundamentally stronger small-cap companies.
• Balanced risk/reward: The P/E range avoids the most distressed and most speculative valuations, helping surface candidates that are both growing and reasonably priced.