Pick me the best 4 stocks

Screening Filters

1. Market Cap ≥ $30B & Large-Cap Category

   • Purpose: Focus on established, financially solid companies when looking for the “best” U.S. stocks.
   • Rationale:
     • Large caps (≥ $30B) are typically market leaders with proven business models, better liquidity, and more analyst coverage.
     • This reduces exposure to highly speculative small caps and aligns with the idea of “top-tier” or “best” names rather than lottery-ticket stocks.

2. Exchange: NYSE (XNYS) & NASDAQ (XNAS)

   • Purpose: Limit results to the main U.S. stock exchanges.
   • Rationale:
     • NYSE and NASDAQ host the bulk of high-quality, widely followed U.S. corporations.
     • This ensures you’re looking at mainstream, well-regulated listings rather than thinly traded or OTC securities.

3. Index Component: S&P 500 (GSPC) or NASDAQ-100 (NDX)

   • Purpose: Filter to the core set of leading U.S. companies.
   • Rationale:
     • S&P 500 and NASDAQ-100 are composed of the most significant and influential U.S. stocks by size and importance.
     • Requiring membership in one of these indexes is a strong quality screen: these companies have passed multiple layers of liquidity, size, and reporting standards and are considered “benchmark” holdings.

4. Return on Equity (ROE) ≥ 15%

   • Purpose: Ensure the companies generate strong returns on shareholders’ capital.
   • Rationale:
     • ROE ≥ 15% is a common threshold for high-quality businesses with competitive advantages or strong management.
     • This helps surface companies that are not just big, but also efficient and profitable for their investors.

5. 5-Year Revenue CAGR ≥ 8%

   • Purpose: Require solid, sustained top-line growth.
   • Rationale:
     • A ≥ 8% compound annual revenue growth rate over five years shows that the company is growing faster than inflation and often faster than GDP.
     • This favors companies with lasting growth engines rather than stagnating “big but slow” names.

6. P/E (TTM) Between 10 and 35

   • Purpose: Balance between avoiding both too-cheap (possibly distressed) and too-expensive (overhyped) stocks.
   • Rationale:
     • P/E < 10 can be a value trap or signal major business risk;
     • P/E > 35 often implies very high expectations and valuation risk.
     • The 10–35 band targets reasonably valued growth or quality stocks, consistent with picking “best” ideas rather than speculative extremes.

7. Analyst Consensus: Strong Buy or Moderate Buy

   • Purpose: Incorporate professional Wall Street sentiment as an additional quality and momentum filter.
   • Rationale:
     • Limiting to Strong Buy / Moderate Buy means the majority of covering analysts see upside from current prices.
     • This aligns with your request for “best” stocks by leveraging aggregated expert opinion and excluding names with Neutral/Sell consensus.

Why Results Match Your Request

• The combination of large-cap, S&P 500 / NASDAQ-100 membership, and major U.S. exchanges ensures you’re only seeing top-tier, core U.S. companies, consistent with a “best 4 US stocks” mandate.
• The ROE and 5-year revenue growth filters narrow this universe to high-quality businesses that are both profitable and growing at a healthy pace.
• The P/E range enforces reasonable valuations, so the picks are not just great companies but also sensibly priced.
• The analyst consensus filter adds a layer of current market and expert endorsement, aligning the final list with what professionals currently view as attractive opportunities.

Together, these filters are designed to surface a very small group of large, financially strong, growing, reasonably valued U.S. leaders with positive analyst support—a logical interpretation of “the best 4 US stocks.”