Screening Filters
Market Cap ≥ $50,000,000,000 (Large Caps)
- Purpose: Limit results to very large, established companies.
- Rationale:
- A “show the screener” request is very broad, so your colleague likely chose a high-quality, core-universe starting point.
- Large caps (≥ $50B) tend to be more liquid, better covered by analysts, and generally more stable than small/mid caps.
- This makes the list more usable as a foundational watchlist rather than a speculative set of names.
Beta: LowRisk / ModerateRisk
- Purpose: Focus on stocks with lower or moderate volatility relative to the overall market.
- Rationale:
- For a generic screener, it’s safer to avoid extremely high-beta (highly volatile) names.
- Low to moderate beta helps surface stocks that move more predictably and are less prone to extreme swings, which suits a broad audience that didn’t explicitly ask for high-risk/high-reward ideas.
Index Component: GSPC (S&P 500)
- Purpose: Restrict results to stocks that are part of the S&P 500 index.
- Rationale:
- The S&P 500 is a widely used benchmark of major U.S. companies with strict inclusion criteria (size, liquidity, profitability).
- Using this as a universe ensures the screener shows well-known, credible, and relatively vetted companies, aligning with a general “show me a solid screener” request.
Net Margin ≥ 12.0001%
- Purpose: Ensure companies have relatively strong profitability.
- Rationale:
- Net margin measures how much of each dollar of revenue becomes net income.
- A threshold above 12% excludes low-margin or barely-profitable businesses, focusing the list on companies with meaningful pricing power, cost control, or operational efficiency.
- This makes the screener tilt toward quality rather than just size.
P/E (TTM) between 12 and 25
- Purpose: Target companies with reasonable valuations—not too cheap (potentially distressed) and not extremely expensive.
- Rationale:
- A P/E below 12 can sometimes signal structural issues, cyclicality, or market skepticism (though not always).
- A P/E above 25 can indicate very high growth expectations or overvaluation risk.
- The 12–25 band aims to capture stocks that are neither bargain-basement nor hype-driven, appropriate for a baseline screener.
Why Results Match Your Request
- The request “show the screener” is open-ended, so your colleague built a general-purpose, quality-focused screen: large, profitable, benchmark-constituent companies at reasonable valuations.
- Each filter narrows the universe toward well-known, financially solid, and relatively stable names, giving you a clean, investable starting list rather than an overwhelming or highly speculative set of stocks.
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.