Us stocks

Screening Filters

1. Market Cap ≥ $50B (market_cap: {'min': '50000000000'})

   • Purpose: Focus on large, established U.S. companies.
   • Rationale: When someone asks “What U.S. stocks should I buy?” without adding constraints (like small caps, turnarounds, deep value, etc.), a sensible default is higher-quality, more stable businesses. Large-cap companies:
     • Tend to have more predictable earnings and stronger balance sheets.
     • Are usually more liquid (easier to buy and sell without big price impact).
     • Are often better-covered by analysts and have more available information.

2. S&P 500 Components Only (is_index_component: ['GSPC'])

   • Purpose: Restrict to companies in the S&P 500 index.
   • Rationale: The S&P 500 is a widely used benchmark of major U.S. companies. Limiting to S&P 500:
     • Ensures the stocks are significant players in their industries.
     • Implicitly filters for a minimum level of size, liquidity, and financial viability (since index inclusion has criteria).
     • Matches a “core holdings” style that many long-term investors use.

3. Listed on Major U.S. Exchanges (list_exchange: ['XNYS', 'XNAS', 'XASE'])

   • Purpose: Ensure the stocks trade on primary U.S. exchanges (NYSE, NASDAQ, NYSE American).
   • Rationale: This directly addresses “U.S. stocks” by:
     • Excluding OTC/pink sheet names and foreign primary listings.
     • Focusing on more regulated, transparent markets with better disclosure standards.

4. Net Margin ≥ 15% (net_margin: {'min': '15'})

   • Purpose: Target companies with strong profitability.
   • Rationale: Net profit margin measures how much profit a company keeps from each dollar of revenue. A 15%+ margin is generally considered healthy and indicates:
     • Pricing power or operational efficiency.
     • Some buffer against cost pressures and downturns.
     • A preference for higher-quality businesses vs. low-margin, more cyclical names.

5. Return on Equity (ROE) ≥ 15% (return_on_equity: {'min': '15'})

   • Purpose: Select companies that generate attractive returns on shareholders’ capital.
   • Rationale: ROE is a key quality metric. A 15%+ ROE often suggests:
     • Effective management and good capital allocation.
     • Competitive advantages (brands, network effects, cost advantages, etc.).
     • Better long-term compounding potential than low-ROE peers, all else equal.

6. 5-Year Revenue CAGR ≥ 8% (revenue_5yr_cagr: {'min': '8'})

   • Purpose: Ensure the companies are not just profitable, but also growing at a solid pace.
   • Rationale: A 5-year compound annual growth rate of 8%+ in revenue:
     • Filters out stagnant or declining businesses.
     • Focuses on companies expanding their top line faster than typical GDP growth.
     • Increases the chance of future earnings growth, which is often a key driver of long-term stock returns.

Why Results Match Your Question (“What U.S. stocks should I buy?”)

• They are U.S.-listed and large, established companies (major exchanges, large market cap, S&P 500), which is a reasonable starting universe for general “what should I buy” questions.
• Within that universe, the screen emphasizes quality and growth:
  • High profitability (net margin).
  • Efficient use of capital (ROE).
  • Solid multi-year revenue growth (5-year CAGR).
• The combination aims to surface financially strong, growing U.S. blue-chip type stocks, which many investors use as core long-term holdings.

Note: This screen does not consider valuation, sector diversification, or your personal risk tolerance/time horizon, which are important next steps before deciding what you personally should buy.