Stocks likely to recover long term

Screening Filters & Rationale

1. market_cap: { min: 2,000,000,000 }

   • Purpose: Focus on mid- and large-cap US companies with more established business models and resources.
   • Rationale: Larger firms tend to be more resilient and have better access to capital, improving the odds of long-term recovery after a downturn.

2. region: [US]

   • Purpose: Limit the universe to U.S.-domiciled companies.
   • Rationale: U.S. stocks provide clearer regulatory, accounting, and macroeconomic context for assessing long-term recovery prospects.

3. revenue_5yr_cagr: { min: 5 }

   • Purpose: Select companies that have grown revenue at least 5% annually over the last 5 years.
   • Rationale: A history of sustained revenue growth suggests a viable business model and demand tailwinds that can support long-term rebounds.

4. debt_equity: { max: 1.5 }

   • Purpose: Filter for companies with moderate leverage.
   • Rationale: Keeping debt levels in check reduces bankruptcy and refinancing risk, which is crucial for surviving downturns and participating in recoveries.

5. weekly_average_turnover: { min: 1,000,000 }

   • Purpose: Ensure sufficient trading liquidity.
   • Rationale: Higher turnover makes it easier to enter and exit positions near fair value, reducing liquidity and transaction-cost risks in long-term portfolios.

6. list_exchange: [XNYS, XNAS, XASE]

   • Purpose: Restrict to major U.S. exchanges (NYSE, Nasdaq, NYSE American).
   • Rationale: These venues typically enforce higher listing standards and offer better transparency, which supports more reliable long-term analysis.

7. year_price_change_pct: { max: -20 }

   • Purpose: Target stocks that have declined at least 20% over the last year.
   • Rationale: Significant price drops can indicate potential value and recovery opportunities, provided the underlying fundamentals remain intact.