Screening Filters
Market Capitalization: 300M – 1.2B USD
- Purpose: Target “low market capitalization” companies while avoiding extremely tiny, illiquid, or highly speculative names.
- Rationale:
- In practice, “low market cap” usually maps to small-cap (roughly a few hundred million to low single-digit billions).
- Setting a minimum of $300M screens out micro- and nano-caps, which often have very low liquidity, higher manipulation risk, and poor disclosure.
- Setting a maximum of $1.2B keeps the universe in the lower part of the small-cap spectrum, which is consistent with your request for low market cap stocks rather than mid- or large-caps.
Price: 5 – 20 USD
- Purpose: Focus on reasonably priced, tradeable stocks and avoid penny stocks.
- Rationale:
- A minimum price of $5 excludes typical penny stocks, which often have extreme volatility, wide bid-ask spreads, and higher risk of delisting or manipulation.
- A maximum price of $20 keeps the names in a “lower-priced” range that many investors associate with smaller or earlier-stage companies, while still being mainstream listings.
Monthly Average Dollar Volume: ≥ 500,000 USD
- Purpose: Ensure that the low market cap names are still sufficiently liquid to enter and exit positions without excessive slippage.
- Rationale:
- A minimum of $500K traded per month filters out the most illiquid small caps, where even modest order sizes can move the price materially or be hard to fill.
- This makes the results more practical for actual trading or investment, not just theoretical ideas.
Quarterly Revenue YoY Growth: ≥ 5%
- Purpose: Tilt the search toward smaller companies that are at least growing, not stagnant or shrinking.
- Rationale:
- Low market cap alone can indicate either opportunity (early growth) or distress (business in decline).
- Requiring at least 5% year-over-year revenue growth in the latest quarter helps bias the list toward companies that are expanding their top line, suggesting healthier underlying businesses or earlier-stage growth stories.
P/E (TTM): 8 – 25
- Purpose: Avoid extremely overvalued or deeply distressed names while staying in a reasonable valuation band.
- Rationale:
- A minimum P/E of 8 screens out very low or negative P/Es often associated with serious business issues, accounting noise, or one-off events.
- A maximum P/E of 25 helps avoid speculative, very richly priced names that may not be suitable if you are looking for relatively grounded small-cap opportunities rather than high-flying momentum plays.
Why Results Match Your Request
- The market cap band (300M–1.2B) directly targets low market capitalization companies, staying firmly in the small-cap segment and away from mid/large caps.
- Additional filters on price, liquidity, growth, and valuation refine this low market cap universe so that:
- The names are tradeable (via price and dollar volume constraints),
- The businesses show some growth (revenue YoY filter),
- And valuations are within a reasonable fundamental range (P/E filter).
Altogether, these filters are designed to find practical, investable low-cap stocks, not just any tiny company on an exchange.
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.