Top 10 small cap stocks

Screening Filters

1. Market Cap: {'min': '300,000,000', 'max': '2,000,000,000'}

   • Purpose: To identify small-cap stocks.
   • Rationale: Small-cap stocks are typically defined as companies with a market capitalization between $300 million and $2 billion. By setting this range, the filter ensures that only stocks within the small-cap category are included in the results.

2. Weekly Average Turnover: {'min': '1,000,000'}

   • Purpose: To ensure sufficient liquidity in the selected stocks.
   • Rationale: A minimum weekly average turnover of $1,000,000 ensures that the stocks being screened are actively traded. This reduces the risk of illiquidity, which can make it difficult to buy or sell shares without significantly impacting the stock price.

3. Relative Volume: {'min': '1.5'}

   • Purpose: To identify stocks with higher-than-usual trading activity.
   • Rationale: A relative volume of 1.5 or higher indicates that the stock is currently trading at 1.5 times its average volume. This can signal increased investor interest or activity, which may be relevant for identifying potential opportunities.

4. P/E TTM: {'max': '20'}

   • Purpose: To filter for stocks with reasonable valuations.
   • Rationale: A price-to-earnings (P/E) ratio of 20 or below is often considered a benchmark for reasonably valued stocks. This filter helps exclude overvalued stocks, ensuring that the results focus on companies with potentially attractive valuations.

Why Results Match:

• The market cap filter directly aligns with the user's request for small-cap stocks by restricting the search to companies within the small-cap range.
• The weekly average turnover filter ensures that the selected stocks are liquid and actively traded, making them more practical for investment.
• The relative volume filter highlights stocks experiencing increased trading activity, which could indicate heightened investor interest or potential catalysts.
• The P/E ratio filter ensures that the selected stocks are not excessively overvalued, which is particularly important for small-cap stocks that can sometimes trade at inflated valuations.

By combining these filters, the screener effectively narrows down the universe of stocks to a focused list of small-cap companies that are liquid, actively traded, and reasonably valued, making them more likely to meet the user's expectations for "top 10 small-cap stocks."