Undervalued 52-week low

Screening Filters

1. Market Cap ≥ $500,000,000

   • Purpose: Include only mid‑size and larger, more established companies.
   • Rationale:
     • The user is asking about “undervalued” stocks, which usually implies some basic level of business stability and analyst coverage.
     • A market cap floor of $500M screens out tiny microcaps and highly speculative names, where price swings can be driven more by illiquidity or hype than by fundamentals.
     • This helps focus the list on companies where traditional valuation metrics (like P/E) are more meaningful.

2. Monthly Average Dollar Volume ≥ $100,000

   • Purpose: Ensure the stocks are reasonably liquid and tradable.
   • Rationale:
     • “Undervalued and trading near 52-week low” is only actionable if you can actually get in and out of the stock without extreme slippage.
     • A minimum dollar volume filter helps exclude thinly traded names where prices can be distorted and hard to execute at quoted levels.
     • This improves the practical investability of the screened stocks.

3. New High/Low = 52-Week Low

   • Purpose: Find stocks currently trading at or very near their 52‑week low.
   • Rationale:
     • This directly targets the “trading near their 52-week low” part of your question.
     • Stocks at 52‑week lows are often out of favor or under pressure, which is where potential undervaluation can arise if the market has overreacted.
     • This filter ensures that every result is exactly in that “near the bottom of its 1-year range” bucket you asked about.

4. P/E (TTM) ≥ 0.01

   • Purpose: Restrict results to companies with a positive, defined P/E ratio.
   • Rationale:
     • To even talk about “undervaluation” using earnings-based metrics, the company needs to have earnings; otherwise, the P/E is negative or undefined.
     • A minimum P/E above zero excludes companies with losses or zero earnings, which often trade on speculative narratives rather than fundamental valuation.
     • This doesn’t by itself ensure the stocks are cheap; it just sets a baseline so that a valuation comparison (e.g., low vs. sector/market) is meaningful.

Why Results Match Your Request

• The 52-week low filter explicitly captures the “trading near their 52‑week low” condition.
• The positive P/E requirement ensures we’re looking at companies that actually earn money, which is a prerequisite for traditional “undervalued” analysis.
• The market cap and liquidity filters focus the search on established, tradable companies, where low prices relative to earnings are more likely to reflect genuine undervaluation rather than extreme risk, illiquidity, or one-off anomalies.

If you wanted to be even stricter about “undervalued,” the next step would be to add upper bounds on valuation metrics (e.g., maximum P/E, low price-to-book, etc.), but this set of filters is a solid first pass: profitable, reasonably liquid companies currently at their 52‑week lows.