Trending penny stocks

Screening Filters

1. Market Cap (max: $300,000,000):

   • Purpose: To focus on smaller companies with a relatively low market capitalization.
   • Rationale: Penny stocks are typically associated with small-cap companies. By setting a maximum market cap of $300 million, the filter ensures that only smaller, less-established companies are included, which aligns with the user's interest in penny stocks.

2. Price (max: $5):

   • Purpose: To identify stocks that are low-priced and fall within the typical range of penny stocks.
   • Rationale: Penny stocks are generally defined as stocks trading under $5. This filter ensures that only stocks within this price range are considered, directly addressing the user's request.

3. Relative Volume (min: 1.5):

   • Purpose: To find stocks that are experiencing higher-than-usual trading activity.
   • Rationale: "Trending" stocks are often characterized by increased trading volume compared to their historical average. A relative volume of at least 1.5 ensures that the stocks selected are currently seeing significant interest and activity in the market.

4. Weekly Average Turnover (min: $1,000,000):

   • Purpose: To ensure that the selected stocks have sufficient liquidity and are actively traded.
   • Rationale: Penny stocks can sometimes suffer from low liquidity, making them difficult to trade. By setting a minimum weekly average turnover of $1 million, the filter ensures that the selected stocks have a reasonable level of trading activity, making them more practical for investors to buy and sell.

Why Results Match:

• The filters collectively focus on low-priced, small-cap stocks, which are the defining characteristics of penny stocks.
• The inclusion of relative volume and weekly average turnover ensures that the selected stocks are not only penny stocks but are also "trending" due to increased trading activity and liquidity.
• These filters strike a balance between identifying penny stocks and ensuring they are actively traded and currently attracting market attention, making them relevant to the user's query.