Screening Filters
beta: LowRisk, ModerateRisk
- Purpose: Focus on stocks with lower to moderate volatility relative to the overall market.
- Rationale: When someone broadly asks “What financial assets should I consider buying?”, a reasonable interpretation is that they’re looking for candidates that are not excessively risky.
- A low beta stock tends to move less than the market (less downside in sharp sell‑offs, but also less upside in rallies).
- A moderate beta stock still participates in market moves but isn’t extremely volatile.
This helps surface names that are more suitable as core holdings rather than speculative trades.
is_index_component: GSPC (S&P 500)
- Purpose: Limit results to companies that are part of the S&P 500 index.
- Rationale: The S&P 500 is a widely followed benchmark of large, established U.S. companies. These firms typically have:
- Larger market caps
- Better liquidity (easier to buy/sell)
- More analyst coverage and disclosure
For someone asking generally what to consider buying, starting with large, well-known companies is a conservative and practical approach.
list_exchange: XNYS, XNAS, XASE (NYSE, NASDAQ, AMEX)
- Purpose: Include only stocks listed on major U.S. exchanges.
- Rationale: Major exchanges enforce listing standards, which usually translates into:
- Higher reporting quality and transparency
- Greater liquidity and narrower bid–ask spreads
This filter keeps the universe to widely traded, regulated U.S. stocks, which are more accessible and suitable for most investors.
net_margin: min 10%
- Purpose: Require companies to earn at least a 10% net profit margin.
- Rationale: Net margin measures how much profit a company keeps from each dollar of revenue. A minimum of 10%:
- Screens out low-margin or barely profitable firms
- Favors businesses with healthy profitability and pricing power
For a general “what should I consider buying?” question, emphasizing financially solid, profitable companies is a prudent tilt.
quarter_revenue_yoy_growth: min 5%
- Purpose: Ensure the company’s latest quarter revenue is growing at least 5% year-over-year.
- Rationale: Revenue growth is a key indicator of business momentum. Requiring at least modest growth:
- Avoids stagnating or shrinking businesses
- Focuses on companies that are still expanding their top line
This balances quality (profitability) with growth potential, which is attractive for long-term investors.
pe_ttm: min 10, max 30
- Purpose: Filter for stocks trading at a “reasonable” valuation relative to earnings.
- Rationale:
- PE < 10 can sometimes indicate distressed, cyclical, or low-quality companies (though not always).
- PE > 30 often reflects very high-growth or overhyped names where expectations may be fragile.
By constraining the P/E to 10–30, the screen aims at:
- Avoiding extreme value traps on the low end
- Avoiding potentially overpriced growth on the high end
This helps identify companies that are not obviously too cheap for a reason nor excessively expensive.
Why Results Match the User’s Question
- The user asked broadly what financial assets to consider buying. This screen interprets that as: “Which individual stocks might be sensible to look at?” and narrows to large, established U.S. companies.
- The filters collectively target stocks that are:
- Relatively stable (low to moderate beta)
- Well-established and liquid (S&P 500 components on major U.S. exchanges)
- Profitable with solid margins (net margin ≥ 10%)
- Still growing (revenue growth ≥ 5% YoY)
- Reasonably valued (P/E between 10 and 30)
Together, this creates a list of higher-quality, moderate-risk, reasonably valued large-cap U.S. stocks, which is a sensible starting universe for someone asking what assets to consider buying, without drifting into very speculative or obscure names.
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.