WHAT ARE YOUR STOP PICKS TODAY

Screening Filters

1. Market Cap ≥ $10B (market_cap: {'min': '10000000000'})

   • Purpose: Focus on large-cap companies.
   • Rationale:
     • Large caps are typically more established, with diversified operations, better access to capital, and more analyst coverage.
     • When someone asks for “top stock picks” in a broad sense (without specifying speculative or micro-cap), large, liquid, well-known companies are usually the most appropriate starting universe.
     • This reduces idiosyncratic risk often found in very small or thinly traded stocks.

2. Price Above 200-Day Moving Average (moving_average_relationship: ['PriceAboveMA200'])

   • Purpose: Select stocks in a confirmed uptrend or at least not in a long-term downtrend.
   • Rationale:
     • The 200-day moving average is a widely used long-term trend indicator.
     • Stocks trading above their 200-day MA are, by definition, exhibiting relatively stronger price action and positive market sentiment.
     • For “top picks today,” trend-following logic filters out names that are fundamentally solid but currently in prolonged price declines.

3. Region = United States (region: ['United States'])

   • Purpose: Restrict results to U.S.-domiciled companies.
   • Rationale:
     • The user explicitly asked for “the US stock market.”
     • This ensures that the companies are subject to U.S. regulatory and reporting standards (e.g., SEC filings), aligning with the market the user is interested in.

4. Exchange = NYSE / NASDAQ / AMEX (list_exchange: ['XNYS', 'XNAS', 'XASE'])

   • Purpose: Limit to major U.S. exchanges.
   • Rationale:
     • NYSE (XNYS), NASDAQ (XNAS), and AMEX (XASE) are the primary U.S. stock exchanges with higher listing standards and better liquidity.
     • This avoids OTC and lightly regulated venues, which can carry higher trading and governance risks and are less aligned with the idea of mainstream “top picks.”

5. Return on Equity ≥ 12% (return_on_equity: {'min': '12'})

   • Purpose: Screen for companies that generate solid returns on shareholders’ capital.
   • Rationale:
     • ROE measures how efficiently a company converts equity into profits.
     • A threshold of 12% is a reasonably high bar, suggesting good profitability and operational efficiency.
     • This aligns with the idea that “top picks” should generally be businesses that are not only large but also strong performers financially.

6. Revenue 5-Year CAGR ≥ 10% (revenue_5yr_cagr: {'min': '10'})

   • Purpose: Ensure companies have demonstrated solid top-line growth over time.
   • Rationale:
     • A 10%+ compound annual growth rate in revenue over five years indicates sustained business expansion rather than a one-off spike.
     • Growth in revenues often supports future earnings growth and can drive long-term share price appreciation.
     • For “top picks,” it filters out low- or no-growth large caps that may be stable but not particularly compelling.

7. EPS 5-Year CAGR ≥ 0% (eps_5yr_cagr: {'min': '0'})

   • Purpose: Exclude companies with deteriorating earnings over the last five years.
   • Rationale:
     • By requiring non-negative earnings growth, the screen avoids businesses with shrinking profitability.
     • It’s a relatively lenient filter, allowing for companies with flat or modestly growing earnings, while still eliminating structurally declining stories.
     • Combined with revenue growth, this helps identify firms that can translate sales growth into at least stable, and often improving, bottom lines.

8. P/E (TTM) ≤ 35 (pe_ttm: {'max': '35'})

   • Purpose: Avoid extremely overvalued stocks based on trailing earnings.
   • Rationale:
     • P/E of 35 is high enough to include many quality growth names but low enough to exclude the most speculative or frothy valuations.
     • For “top picks,” valuation discipline matters: paying any price for growth raises downside risk.
     • This filter seeks a balance between growth potential and reasonable pricing.

Why Results Match the User’s Request

• Focus on quality and stability: Large-cap, high-ROE, and growing companies on major U.S. exchanges align with the idea of credible, institutionally followed candidates for “top stock picks,” rather than illiquid or speculative names.
• Trend and sentiment aligned: Requiring price above the 200-day moving average ensures candidates are not fighting a long-term downtrend, fitting with the “today” aspect of the request (what’s working in the current market).
• Growth plus reasonable valuation: The combination of revenue growth, stable or growing EPS, and a capped P/E ratio narrows the universe to companies that balance growth prospects and valuation—core considerations in choosing top ideas.
• U.S. market specificity: Region and exchange filters directly match the “US stock market” constraint, ensuring that all screened names are relevant to that geographic and regulatory context.

Together, these filters don’t guarantee outperformance but create a focused list of higher-quality, growing, reasonably valued U.S. large caps currently in positive long-term trends—an appropriate starting set for identifying “top stock picks” today.