Stock choice U.S. to make money

Screening Filters

1. Market Cap > $2B

   • Purpose: Focus on established U.S. companies.
   • Rationale: Larger companies tend to have more liquidity, better reporting quality, and less risk of extreme manipulation than very small caps. This makes the screen more suitable for finding stocks with a better chance of producing tradable, higher-quality opportunities.

2. Volume > 1,000,000

   • Purpose: Ensure the stocks are actively traded.
   • Rationale: High volume improves liquidity and makes it easier to enter and exit positions without large price slippage. For a “make money” screen, tradability is important because even good ideas can be hard to execute if volume is too low.

3. Price Above 20-Day Moving Average

   • Purpose: Capture short-term upward momentum.
   • Rationale: If the stock is above its 20-day average, it suggests recent price strength and buying interest. This helps filter for stocks that are already moving favorably rather than weak or drifting names.

4. Price Above 200-Day Moving Average

   • Purpose: Confirm longer-term trend strength.
   • Rationale: Trading above the 200-day average is a classic sign of an established bullish trend. Combining this with the 20-day average helps avoid stocks that are only experiencing a short-lived bounce.

5. RSI: Moderate

   • Purpose: Avoid extremely overbought or oversold conditions.
   • Rationale: A moderate RSI suggests the stock has momentum but is not excessively stretched. That can reduce the risk of chasing overheated names while still keeping stocks with constructive price action.

6. Month Price Change ≥ 0%

   • Purpose: Require positive or at least non-negative near-term performance.
   • Rationale: This keeps the screen focused on stocks that have not been losing ground recently. It reinforces the momentum theme and helps avoid names in clear short-term downtrends.

7. Price > 20-Day EMA

   • Purpose: Another momentum confirmation using an exponential average.
   • Rationale: EMA gives more weight to recent price action. Being above the 20-day EMA supports the view that current trend strength is intact.

8. Price > 200-Day EMA

   • Purpose: Confirm long-term trend with a more responsive trend line.
   • Rationale: Like the 200-day moving average rule, this ensures the stock is above a major trend benchmark. Using both SMA-style and EMA-style checks strengthens the trend filter.

9. Quarterly Revenue YoY Growth > 10%

   • Purpose: Look for companies with meaningful fundamental growth.
   • Rationale: Price momentum is more durable when supported by real business growth. Revenue growth helps screen out purely speculative moves and favors businesses that are actually expanding.

10. P/E TTM < 35

    • Purpose: Avoid overly expensive stocks.
    • Rationale: This helps keep valuations within a reasonable range. A stock can have strong momentum, but if valuation is extreme, it may be more vulnerable to sharp pullbacks.

11. EV/EBITDA < 25

    • Purpose: Add a second valuation sanity check.
    • Rationale: EV/EBITDA is useful because it accounts for debt and capital structure better than P/E alone. This filter helps ensure the screen finds growth stocks that are not priced too aggressively.

12. Analyst Consensus: Strong Buy or Moderate Buy

    • Purpose: Include stocks with favorable Wall Street expectations.
    • Rationale: Positive analyst sentiment can serve as an additional confirmation that the market and professionals see upside potential. It does not guarantee performance, but it helps tilt the screen toward names with supportive outside coverage.

Why Results Match:

• The screen combines momentum, trend confirmation, fundamental growth, reasonable valuation, and liquidity.
• That makes it well-suited for a broad request like “screen U.S. stocks to make money,” because it aims to find stocks that are:
  • already performing well technically,
  • supported by improving business fundamentals,
  • not excessively expensive,
  • and easy enough to trade in size.
• In short, these filters are designed to find high-quality, tradable U.S. stocks with upward price trends and real growth behind them, rather than speculative or illiquid names.