Screening Filters
Market Cap ≥ $10,000,000,000 (Large Cap Only)
- Purpose: Focus on larger, more established oil companies.
- Rationale: When someone asks “What oil stocks should I buy?”, they’re often looking for relatively stable, well-known names rather than highly speculative small caps. A $10B+ market cap tilts the list toward major integrated oil companies and large producers, which generally:
- Have more diversified operations and stronger balance sheets
- Are more liquid (easier to buy/sell)
- Are common choices for long‑term investors
Sector = Energy / Energy – Fossil Fuels
- Purpose: Restrict the universe specifically to companies operating in the energy space, with a focus on fossil fuels.
- Rationale: “Oil stocks” are a subset of the energy sector. By targeting Energy and Energy – Fossil Fuels:
- You filter out unrelated industries (tech, healthcare, etc.)
- You capture oil producers, integrated oil & gas, and related fossil-fuel companies that are most relevant to your request
Theme = Oil Sector
- Purpose: Further refine the list to companies whose primary business is tied directly to oil.
- Rationale: Not all energy companies are oil-focused (some are gas-heavy, utilities, renewables, etc.). The “Oil sector” theme:
- Narrows the list to firms whose performance is closely linked to oil prices and oil-related activities
- Makes the results better aligned with what most investors mean by “oil stocks” (vs. general energy)
Region = United States
- Purpose: Limit results to U.S.-based or U.S.-listed oil companies.
- Rationale: Many investors asking “What should I buy?” implicitly mean U.S. names because:
- They’re generally easier to trade on U.S. brokerages
- Financial reporting standards are more familiar to U.S.-based investors
- There’s typically higher liquidity and more analyst coverage
Exchange = XNYS, XNAS, XASE (NYSE, Nasdaq, NYSE American)
- Purpose: Include only stocks listed on major U.S. exchanges.
- Rationale: Major exchanges:
- Enforce listing standards (governance, reporting, capitalization)
- Provide better liquidity and price transparency
- Are where most mainstream, buy‑and‑hold investors source their positions
Return on Equity (ROE) ≥ 8%
- Purpose: Filter for companies generating at least a moderate level of profitability relative to shareholder equity.
- Rationale: When you ask what to buy, quality matters as much as sector exposure. An ROE ≥ 8%:
- Screens out chronically unprofitable or poorly managed companies
- Favors firms that historically deploy capital reasonably well
- Acts as a quick quality/profitability check within the oil universe
P/E (TTM) Between 5 and 15
- Purpose: Select stocks that are neither extremely expensive nor suspiciously cheap on an earnings basis.
- Rationale: Oil is cyclical, but valuation still matters:
- A minimum P/E of 5 helps avoid extremely distressed or one‑off anomaly valuations (which can indicate risk or collapsing earnings).
- A maximum P/E of 15 seeks companies that are reasonably priced relative to current earnings, not high‑growth, overvalued names.
- Overall, this aims for “value to fair” pricing common in mature, cyclical sectors like oil.
Dividend Yield (TTM) ≥ 3%
- Purpose: Emphasize income‑generating oil stocks.
- Rationale: Many investors in oil companies specifically look for dividend income:
- A 3%+ yield is a meaningful level of cash return, especially for large, established oil majors.
- This filter pushes the results toward more mature, cash‑flow‑rich companies that share profits with shareholders, rather than speculative growth plays.
Why Results Match Your Question
- The sector and theme filters (Energy, Fossil Fuels, Oil sector) ensure the list contains true “oil stocks,” not just generic energy names.
- The size (market cap) and exchange filters focus on large, liquid, established companies that are more typical “buy” candidates for most investors.
- The quality and valuation filters (ROE ≥ 8%, P/E 5–15) try to balance financial strength with reasonable pricing, aligning with a sensible “what should I buy” framework rather than pure speculation.
- The dividend yield filter (≥ 3%) targets the kind of oil stocks many investors favor: stable, cash‑generating businesses that can pay you to hold them over time.
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.