What oils stock should i buy

Screening Filters

1. 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

2. 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

3. 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)

4. 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

5. 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

6. 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

7. 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.

8. 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.