Screening Filters
is_index_component: ['GSPC', 'NDX'] (S&P 500 and NASDAQ 100)
- Purpose: Limit the search to large, liquid, well‑followed US companies.
- Rationale:
- When someone asks for the “best stocks in the US stock market,” they usually mean established, high‑quality names, not obscure microcaps.
- The S&P 500 (GSPC) and NASDAQ 100 (NDX) contain many of the market’s most important companies by size, quality, and investor attention.
- This reduces the risk of including illiquid or poorly governed companies that might look “cheap” for the wrong reasons.
region: ['US']
- Purpose: Make sure only US‑listed companies are included.
- Rationale:
- The user explicitly said “US stock market,” so foreign markets and ADRs from other regions are excluded.
- Keeps the universe aligned with US economic, regulatory, and accounting standards.
return_on_equity (ROE): {'min': '15'}
- Purpose: Focus on companies that generate strong profitability relative to shareholder equity.
- Rationale:
- ROE ≥ 15% is a common threshold for “high‑quality” or “efficient capital users.”
- Higher ROE often signals strong competitive positioning, good management, and attractive business economics—traits typically associated with “best” companies, not just cheap ones.
eps_5yr_cagr: {'min': '10'}
- Purpose: Require solid earnings growth over the last 5 years (≥10% compound annual growth).
- Rationale:
- “Best” stocks are usually both profitable and growing.
- A 10%+ EPS growth rate over five years indicates a company that has been expanding earnings consistently, not just experiencing a one‑off spike.
- This helps filter out stagnant or declining businesses that might still have decent current profits but weak momentum.
pe_ttm: {'min': '10', 'max': '35'}
- Purpose: Avoid extremes in valuation—both very speculative and very distressed.
- Rationale:
- Lower bound (≥10): Excludes ultra‑low P/E stocks that may be cheap for structural reasons (e.g., cyclicals heading into downturns, companies with high risk or secular decline).
- Upper bound (≤35): Excludes excessively valued names where expectations may be too optimistic, increasing downside risk.
- For “best right now,” you generally want solid businesses at valuations that are reasonable relative to their quality and growth.
analyst_consensus: ['Strong Buy', 'Moderate Buy']
- Purpose: Capture only stocks that currently have broadly positive analyst sentiment.
- Rationale:
- The phrase “right now” implies current market and analyst views matter.
- Requiring a consensus of Strong Buy or Moderate Buy means most covering analysts see upside versus current price, based on their models and research.
- This aligns the screen with stocks that professionals currently favor, rather than ones the market is pessimistic about.
Why Results Match the User’s Request
- The universe is confined to major US stocks (S&P 500 and NASDAQ 100, US region), consistent with “US stock market” and a focus on leading companies.
- Quality and growth are enforced via ROE ≥ 15% and 5‑year EPS CAGR ≥ 10%, which is consistent with what many investors mean by “best” (strong, growing businesses).
- Valuation discipline (P/E between 10 and 35) avoids stocks that are likely cheap for troubling reasons or priced at extreme optimism.
- Current favorability is captured through positive analyst consensus, tying directly to the “right now” aspect of the question by reflecting up‑to‑date professional views.
Together, these filters are designed to surface higher‑quality, growing, reasonably valued US leaders that analysts currently consider attractive—an interpretation consistent with “the best stocks in the US stock market right now.”
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.