What is a good buy

Screening Filters

1. Market Cap ≥ $20B (market_cap: {'min': '20000000000'})

   • Purpose: Focus on large, established companies.
   • Rationale: When someone asks for “a good buy right now,” they usually want names that are more stable, liquid, and well‑followed. A $20B+ market cap limits results to major companies that:
     • Have proven business models and stronger balance sheets
     • Are less likely to be manipulated or highly illiquid
     • Are more suitable for most retail investors than tiny speculative names

2. Region: United States (region: ['United States'])

   • Purpose: Restrict to U.S.-based stocks.
   • Rationale: The user explicitly asked about “the US stock market,” so this ensures results are:
     • Primarily governed by U.S. regulations and reporting standards
     • Easier for a U.S.-focused investor to research and follow
     • Aligned with the user’s geographic request

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

   • Purpose: Include only major U.S. exchanges.
   • Rationale: These exchanges host the most liquid and reputable stocks. This filter:
     • Excludes OTC/pink-sheet and very illiquid names
     • Increases the likelihood of tighter spreads and easier trade execution
     • Aligns with the idea of “good buys” as mainstream, investable stocks

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

   • Purpose: Target companies with strong profitability and capital efficiency.
   • Rationale: ROE measures how well a company turns shareholders’ equity into profits. A 15%+ threshold:
     • Screens for businesses with solid competitive advantages or strong pricing power
     • Favors well-managed companies that generate high returns on capital
     • Matches the idea that a “good buy” should be fundamentally high-quality, not just cheap

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

   • Purpose: Require consistent growth over the last five years.
   • Rationale: A “good buy right now” should ideally have growth momentum, not stagnation. This filter:
     • Focuses on companies whose sales are compounding at a healthy double‑digit rate
     • Reduces exposure to mature, no‑growth or declining businesses
     • Helps find names where future earnings expansion can justify higher stock prices over time

6. P/E (TTM) Between 10 and 30 (pe_ttm: {'min': '10', 'max': '30'})

   • Purpose: Balance valuation between “too cheap (possibly broken)” and “too expensive (overhyped).”
   • Rationale:
     • Lower bound (10) filters out ultra-low P/E stocks that can be value traps (e.g., cyclical collapses or structural decline).
     • Upper bound (30) avoids extreme valuations where a lot of future growth is already priced in, making it harder to be a “good buy right now.”
     • The 10–30 range is a reasonable band for quality, profitable, growing companies where valuation risk is more controlled.

7. Analyst Consensus: Strong Buy or Moderate Buy (analyst_consensus: ['Strong Buy', 'Moderate Buy'])

   • Purpose: Align with current Wall Street “buy” opinions.
   • Rationale: The user is asking now what’s a good buy, so recent professional sentiment is useful:
     • “Strong Buy” and “Moderate Buy” ratings indicate that the majority of covering analysts see upside from current levels
     • Excludes “Hold,” “Underperform,” and “Sell,” which are less consistent with “good buy right now”
     • Acts as an external check that the fundamentals and near‑term outlook are considered favorable by professionals who follow these companies closely

Why Results Match the User’s Request

• Directly focused on U.S. stocks: Region and exchange filters ensure you only see mainstream U.S. names, matching your “US stock market” request.
• Quality + growth: ROE ≥ 15% and 5‑year revenue CAGR ≥ 10% zero in on profitable, growing businesses rather than speculative or low-quality companies.
• Reasonable valuations today: The P/E band (10–30) targets stocks that aren’t obviously distressed or excessively priced, making them more plausible “buys right now” rather than pure hype.
• Stronger consensus that they’re buys: The analyst-consensus filter ensures the list is skewed toward stocks the Street currently views favorably.
• More stability and liquidity: The large‑cap and major‑exchange filters make the results more suitable for typical investors, avoiding illiquid microcaps that may be more like gambles than “good buys.”

Overall, these filters together aim to surface U.S. large‑cap stocks that are:

• Financially strong
• Growing at a solid pace
• Not wildly overvalued
• Currently favored by analysts

—which is a reasonable interpretation of “good buy right now” in the U.S. stock market.