Show me the Most underrated s&p 500 Stocks

Screening Filters

1. Price-to-Earnings (P/E) Ratio (Trailing Twelve Months) - Max: 15

   • Purpose: To identify stocks that are potentially undervalued based on their earnings.
   • Rationale: A low P/E ratio (below 15) suggests that the stock is trading at a lower price relative to its earnings, which can indicate undervaluation. This aligns with the user's request for "underrated" stocks, as such stocks are often overlooked or undervalued by the market.

2. Price-to-Book (P/B) Ratio - Max: 1

   • Purpose: To find stocks trading at or below their book value.
   • Rationale: A P/B ratio of 1 or less indicates that the stock's market price is equal to or less than the company's net asset value. This is another key metric for identifying potentially undervalued or "underrated" stocks, as it suggests the market may not fully appreciate the company's intrinsic value.

3. Dividend Yield (Trailing Twelve Months) - Min: 3%

   • Purpose: To focus on stocks that provide a steady income through dividends.
   • Rationale: A dividend yield of at least 3% ensures that the selected stocks not only have potential for capital appreciation but also offer a reliable income stream. This can be an indicator of financial stability and shareholder-friendly policies, which are often overlooked in undervalued stocks.

4. Index Component - S&P 500 (GSPC)

   • Purpose: To limit the search to stocks that are part of the S&P 500 index.
   • Rationale: The S&P 500 index includes large, established companies that are widely followed by investors. By focusing on this index, the screener ensures that the results are limited to well-known companies that may still be underrated despite their size and prominence.

Why Results Match:

• The combination of a low P/E ratio and low P/B ratio directly targets stocks that are trading at a discount relative to their earnings and book value, which are key indicators of undervaluation.
• Adding a minimum dividend yield ensures that the selected stocks not only appear undervalued but also provide tangible returns to investors, which can be a sign of financial health and stability.
• Restricting the search to S&P 500 components ensures that the results are focused on large-cap, reputable companies, making it more likely to find "underrated" stocks within a well-known and reliable universe.

By applying these filters, the screener effectively narrows down the list of S&P 500 stocks to those that are most likely to be undervalued and overlooked by the market, aligning with the user's request for "most underrated S&P 500 stocks."