Stock to buy now

Screening Filters & Rationale

1. Market Capitalization (5B - 50B):

   • Purpose: Focus on mid-cap stocks with potential for growth and stability.
   • Rationale: Mid-cap companies often balance growth potential with lower risk compared to small caps.

2. Dividend Yield (≥ 1%):

   • Purpose: Ensure the stock provides a minimum level of income through dividends.
   • Rationale: A consistent dividend yield indicates financial health and shareholder returns.

3. EPS 5-Year CAGR (≥ 15%):

   • Purpose: Target companies with strong historical earnings growth.
   • Rationale: High earnings growth suggests robust business performance and potential for future appreciation.

4. P/E Ratio (12 - 20):

   • Purpose: Identify reasonably valued stocks based on earnings.
   • Rationale: This range avoids overvalued stocks while ensuring the company is not undervalued for poor reasons.

5. Return on Equity (≥ 20%):

   • Purpose: Focus on companies efficiently generating profits from shareholders' equity.
   • Rationale: High ROE indicates strong management and effective use of resources.