What are the best bank stocks to buy

Screening Filters & Rationale

1. Dividend Yield (TTM) ≥ 3%:

   • Purpose: To identify bank stocks that provide a steady income stream through dividends.
   • Rationale: A higher dividend yield indicates potential for consistent returns, aligning with income-focused investment strategies.

2. Market Cap (Mid & Large):

   • Purpose: To focus on financially stable and established banks.
   • Rationale: Mid and large-cap companies are generally less volatile and have proven business models.

3. Net Margin ≥ 20%:

   • Purpose: To select banks with strong profitability.
   • Rationale: A higher net margin reflects efficient operations and the ability to generate profit.

4. P/E Ratio (TTM) ≤ 20:

   • Purpose: To ensure the stocks are reasonably valued.
   • Rationale: A lower P/E ratio suggests the stock is not overpriced relative to its earnings.

5. Return on Equity (ROE) ≥ 12%:

   • Purpose: To identify banks with effective management and strong financial performance.
   • Rationale: Higher ROE indicates efficient use of shareholder equity to generate profits.

6. Ticker Selection:

   • Purpose: To narrow down the list to stocks that meet all the above criteria.
   • Rationale: Ensures the final selection aligns with the user's investment goals and screening parameters.