Oversold ressecio. resistant stocks

Screening Filters

1. Market cap > $2B

• Purpose: Focus on established, more durable companies.
• Rationale: Recession-resistant stocks are usually not tiny speculative names. A minimum market cap helps target businesses that tend to have more stable operations, better access to capital, and less vulnerability during economic slowdowns.

2. Beta: LowRisk or ModerateRisk

• Purpose: Select stocks with lower price volatility versus the broader market.
• Rationale: Recession-resistant stocks are typically less sensitive to market drawdowns. Low- to moderate-beta stocks are more likely to hold up better when the economy weakens.

3. RSI category: oversold or moderate

• Purpose: Identify stocks that are not overbought and may be trading at weaker short-term levels.
• Rationale: The user asked for oversold stocks, so RSI helps capture names that may have sold off recently. Including “moderate” broadens the pool slightly to avoid only extremely weak names, while still excluding overextended stocks.

4. Price below 20-day moving average

• Purpose: Capture stocks with recent negative short-term momentum.
• Rationale: This is a classic oversold/weakness signal. If price is below the 20-day moving average, the stock is likely under recent selling pressure, which aligns with the “oversold” part of the request.

5. Price below EMA 20 and EMA 60

• Purpose: Confirm short- and medium-term weakness.
• Rationale: These filters reinforce that the stock is trading below recent trend levels. That helps ensure the screen finds names that are actually depressed relative to their recent averages, not just marginally weak.

6. Sector: Consumer Non-Cyclicals, Healthcare, Utilities, Industrial & Commercial Services

• Purpose: Tilt the screen toward defensive sectors.
• Rationale: These sectors are generally considered more recession-resistant because demand tends to be steadier in downturns. Consumer staples, healthcare, and utilities are classic defensive areas, while selected industrial/services businesses can also be relatively resilient depending on their business model.

7. Optionable = True

• Purpose: Limit results to stocks with listed options.
• Rationale: This doesn’t directly define recession resistance or oversold conditions, but it makes the results more tradable for investors who may want to hedge, generate income, or express a tactical rebound view using options.

8. Free cash flow TTM > 0

• Purpose: Require positive cash generation.
• Rationale: Companies that produce free cash flow are generally more financially resilient, especially in recessions. Positive cash flow suggests the business can fund operations, reduce debt, and absorb slower economic conditions better than cash-burning firms.

9. Debt-to-equity < 1.5

• Purpose: Screen out highly leveraged companies.
• Rationale: Lower leverage is important in downturns because debt-heavy companies face more refinancing risk and financial stress when profits weaken. This filter improves the chance of finding stocks that can withstand a recession.

10. P/E TTM < 30

• Purpose: Avoid excessively expensive stocks.
• Rationale: A reasonable valuation screen helps focus on companies that are not priced for perfection. In a recession, richly valued stocks often rerate downward more sharply, so this filter supports the “resistant” part of the query.

11. EV/EBITDA < 20

• Purpose: Add another valuation check using operating earnings.
• Rationale: EV/EBITDA helps compare companies regardless of capital structure. Keeping it under 20 avoids highly stretched valuations and helps identify stocks that may offer more downside protection in a risk-off environment.

Why Results Match:

• The screen is built to find stocks that have recently sold off or are technically weak by using RSI and moving-average filters.
• At the same time, it emphasizes recession resilience by targeting defensive sectors, larger companies, positive free cash flow, and manageable debt.
• The valuation filters help ensure the names are not overly expensive, which can matter a lot in downturns.
• The result is a list of stocks that are more likely to fit the user’s request for oversold, recession-resistant stocks rather than just weak or speculative names.