What stock should I buy

Screening Filters

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

   • Purpose: Focus on large, established companies.
   • Rationale:
     • When someone asks “What stock should I buy?”, they often want relatively stable, well-known businesses rather than speculative micro-caps.
     • Large-cap firms typically have:
       • More diversified revenue streams
       • Better access to capital
       • More analyst coverage and public information
     • This decreases the chance of extreme volatility or company-specific blow-ups compared with very small firms.

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

   • Purpose: Select stocks in a longer-term uptrend or at least not in a prolonged downtrend.
   • Rationale:
     • The 200-day moving average is a common technical indicator for long-term trend.
     • Requiring the price to be above this level helps:
       • Avoid stocks in clear downtrends (often “value traps”)
       • Align with names where market sentiment is currently constructive
     • For a user simply asking “What should I buy?”, leaning toward technically healthy setups is a sensible default versus catching falling knives.

3. Index Component: S&P 500 or Nasdaq 100 (is_index_component: ['GSPC', 'NDX'])

   • Purpose: Restrict to leading, benchmark companies.
   • Rationale:
     • S&P 500 (GSPC) and Nasdaq 100 (NDX) companies are:
       • Heavily scrutinized and regulated
       • Generally leaders in their sectors
       • Highly liquid (easy to get in and out with tight spreads)
     • For a broad “what should I buy?” query, this ensures the list is made up of mainstream, high-quality names rather than obscure or thinly traded stocks.

4. Quarterly Revenue YoY Growth ≥ 5% (quarter_revenue_yoy_growth: {'min': '5'})

   • Purpose: Ensure the companies are actually growing their business.
   • Rationale:
     • Revenue growth is a fundamental sign of business health and demand for products/services.
     • A minimum of 5% year-over-year quarterly growth filters out stagnating or shrinking businesses.
     • For someone seeking a buy candidate, you usually want at least modest growth so that earnings and valuation have room to expand over time.

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

   • Purpose: Avoid both extremely cheap (potentially distressed) and extremely expensive (potentially overhyped) stocks.
   • Rationale:
     • Very low P/E (<10) can sometimes indicate serious underlying problems or cyclical risks.
     • Very high P/E (>30) can signal that a lot of future growth is already priced in, raising downside risk if expectations slip.
     • A range of 10–30 aims for a balance:
       • Valuations that are not obviously distressed
       • But also not at extreme speculative levels
     • This fits a reasonable “core holding” profile for someone asking what to buy without specifying a very aggressive or very conservative style.

Why Results Match Your Question (“What stock should I buy?”)

• The filters collectively target:

  • Large, liquid, well-known companies (large-cap, major index members)
  • In established uptrends (price above 200-day MA)
  • With real, positive business momentum (revenue growth)
  • At reasonable, not extreme, valuations (moderate P/E range)

• This creates a shortlist of relatively higher-quality, mainstream stocks that are more likely to be suitable starting points for further research for a typical investor, rather than speculative or obscure names.

You’d still want to narrow further based on your risk tolerance, sector preference, time horizon, and whether you care more about growth, dividends, or stability, but these filters are a logical first pass for “what should I buy?” candidates.