Oil stock

Screening Filters

1. Market Cap ≥ $2,000,000,000 & Category: Large / Mid Cap

   • Purpose: Focus on established, relatively stable oil companies rather than very small or speculative names.
   • Rationale:
     • Large- and mid-cap oil companies tend to be more mature, with proven reserves, existing production, and better access to capital.
     • This aligns with a general request for “oil stock” where the user likely expects well-known, liquid names rather than micro-caps or penny stocks.

2. Monthly Average Dollar Volume ≥ $1,000,000

   • Purpose: Ensure the stocks are sufficiently liquid and tradable.
   • Rationale:
     • High dollar volume means it’s easier to buy and sell without significantly moving the price.
     • This makes the results more practical for real-world investing, especially for investors who may want to enter or exit positions efficiently.

3. PriceAboveMA20 (Price above 20-day Moving Average)

   • Purpose: Tilt toward oil stocks with short-term positive or improving price momentum.
   • Rationale:
     • A price above the 20-day moving average often indicates that the stock is in a short-term uptrend or showing recent strength, rather than in a clear decline.
     • For someone asking for “oil stock,” this helps surface names that are not only in the right industry but are currently acting relatively well in the market.

4. Sector: Energy / Energy – Fossil Fuels

   • Purpose: Restrict results to companies in the traditional energy space.
   • Rationale:
     • “Oil stock” almost always refers to energy companies involved with fossil fuels, not renewables or utilities.
     • This directly narrows the universe to the correct part of the market.

5. Industry: Oil & Gas / Oil & Gas Related Equipment and Services

   • Purpose: Precisely target companies that either produce oil & gas or directly support that production (services, equipment, drilling, etc.).
   • Rationale:
     • Ensures we’re not just in the broad Energy sector (which also includes coal, pipelines, sometimes integrated utilities) but specifically in oil & gas and the businesses that depend on oil & gas activity.
     • This tight focus aligns exactly with the user’s “oil stock” request.

6. P/E (TTM) between 5 and 20

   • Purpose: Screen for oil stocks with moderate, arguably more reasonable valuations.
   • Rationale:
     • A lower bound of 5 filters out extremely distressed or potentially low-quality names with ultra-low valuations that might signal severe problems.
     • An upper bound of 20 filters out very expensive oil stocks that could be overhyped relative to current earnings.
     • This attempts to balance value and quality within the oil universe.

Why Results Match:

• The sector and industry filters directly target oil & gas producers and related services, matching the core “oil stock” request.
• The market cap and liquidity filters ensure the stocks are established, trade actively, and are more suitable for most investors.
• The PriceAboveMA20 filter adds a basic momentum check so you’re seeing oil names with currently positive or improving price action.
• The P/E range adds a valuation discipline, focusing on oil stocks that are neither extremely distressed nor very expensive, which many investors consider a reasonable starting point in this cyclical sector.