Micro

Screening Filters

1. Market Cap ≥ $300B

   • Purpose: Restrict results to mega-cap companies.
   • Rationale: Microsoft is one of the world’s largest companies by market cap. Limiting the universe to $300B+ ensures we’re focusing on firms with similar scale, maturity, and data availability (deep coverage, stable financials, institutional interest).

2. Beta: [LowRisk, ModerateRisk, HighRisk, NegativeBeta]

   • Purpose: Allow all beta risk profiles.
   • Rationale: This effectively doesn’t filter on volatility; it just ensures beta is defined. Microsoft typically falls in the low-to-moderate risk range, so it passes easily.

3. Monthly Average Dollar Volume ≥ 0

   • Purpose: Ensure liquidity data is available.
   • Rationale: This is effectively non-restrictive, but it avoids ill-defined securities. Microsoft is among the most liquid stocks globally, so it’s fully compatible.

4. Price Change (1W, 1M, YTD, 1Y) between -100% and +100%

   • Purpose: Exclude extreme/erroneous data points.
   • Rationale: These very wide bands effectively keep any normally trading large-cap stock, including Microsoft, while filtering out data glitches or impossible values.

5. Sector: [Software & IT Services, Technology, Technology Equipment, Telecommunications Services]

   • Purpose: Focus on technology-oriented businesses.
   • Rationale: Microsoft is classified under Software & IT Services / Technology. This sector filter ensures we’re looking at companies with similar business models and industry dynamics (software, cloud, infrastructure, etc.).

6. Themes: [AI Beneficiary, Cloud Computing, SaaS, Technology, IoT, Digital Payments]

   • Purpose: Capture companies exposed to the same structural growth themes as Microsoft.
   • Rationale: Microsoft is deeply involved in AI (via Azure, Copilot, OpenAI partnership), cloud computing, SaaS (Office 365, Dynamics, etc.), and broader tech. Theme filters ensure that results share these strategic growth drivers, making any comparative or contextual analysis more relevant.

7. Region: United States

   • Purpose: Limit to U.S.-based or U.S.-listed companies.
   • Rationale: Microsoft is a U.S. company, listed in the U.S. This keeps the comparison universe within the same regulatory, reporting, and market environment.

8. Exchange: [XNYS, XNAS] (NYSE, NASDAQ)

   • Purpose: Restrict to major U.S. exchanges.
   • Rationale: Microsoft trades on NASDAQ (XNAS). Focusing on NYSE/NASDAQ improves data quality, liquidity, and comparability vs. over-the-counter or foreign markets.

9. Index Membership: [GSPC, NDX] (S&P 500, NASDAQ-100)

   • Purpose: Select large, established, widely followed companies.
   • Rationale: Microsoft is part of both the S&P 500 and NASDAQ-100. Index inclusion implies size, liquidity, and analyst coverage—exactly the kind of company for which rich, detailed analysis is available.

10. Quarterly Revenue YoY Growth: -100% to 100%

    • Purpose: Ensure growth data is present but not overly restrict the range.
    • Rationale: Microsoft has positive revenue growth; these broad bounds simply avoid nonsensical entries while keeping Microsoft and its realistic peers.

11. Quarterly EPS YoY Growth: -100% to 100%

    • Purpose: Same as above, for earnings growth.
    • Rationale: Keeps companies with meaningful EPS history and excludes extreme outliers, while comfortably including Microsoft.

12. Revenue 5-Year CAGR: -100% to 100%

    • Purpose: Require a multi-year track record of reported revenues.
    • Rationale: Microsoft has strong, positive 5-year revenue CAGR. The wide range ensures it’s included while we avoid entities without a reliable multi-year history.

13. EPS 5-Year CAGR: -100% to 100%

    • Purpose: Similar, but for long-term earnings growth.
    • Rationale: Microsoft’s earnings have grown over time. This filter essentially ensures continuous data and excludes companies without a meaningful EPS record.

14. Valuation Ratios ≥ 0 (P/E TTM, P/S, P/B, P/FCF, EV/EBITDA)

    • Purpose: Make sure valuation metrics are positive and defined.
    • Rationale: Negative or undefined ratios usually come from distressed or money-losing companies. Microsoft has positive earnings and cash flows, so its valuation ratios are meaningful. This filter keeps us in the realm of established, profitable firms where comparative valuation is useful.

15. Dividend Yield TTM: 0% to 100%

    • Purpose: Ensure dividend data is present; exclude impossible/extremely erroneous yields.
    • Rationale: Microsoft pays a regular dividend with a modest yield. This range easily includes it while filtering out broken data.

16. Dividend 5-Year CAGR: -100% to 100%

    • Purpose: Require some history of dividend reporting.
    • Rationale: Microsoft has a solid track record of growing its dividend. This wide band ensures we capture that history without over-filtering.

17. Analyst Consensus: [Strong Buy, Moderate Buy]

    • Purpose: Focus on stocks with generally positive analyst sentiment.
    • Rationale: Microsoft is typically rated Strong Buy or Buy by major analysts. This filter aligns with the idea that you’re interested in widely followed, high-quality names with favorable professional research and consensus.

Why Results Match Your Question About Microsoft (MSFT)

• The filters target mega-cap, U.S.-listed technology leaders with strong fundamentals and broad coverage—exactly the profile of Microsoft.
• Sector and theme filters (tech, cloud, AI, SaaS) align directly with Microsoft’s business model and growth drivers.
• Index membership (S&P 500, NASDAQ-100), large market cap, and positive valuation metrics ensure we’re looking at well-established, profitable companies where detailed analysis is available.
• The analyst consensus filter narrows results to widely followed, positively viewed stocks, matching the type of name (like MSFT) that investors typically seek deeper analysis on.

In short, these filters are constructed to make sure Microsoft is included and, if needed, to surface similar high-quality peers for context when providing analysis or comparative information on MSFT.