What stock should I invest in

Screening Filters

1. Market Capitalization (market_cap: min $10 billion):

   • Purpose: To focus on large-cap companies with a market capitalization of at least $10 billion.
   • Rationale: Large-cap companies are generally more stable, well-established, and less volatile compared to smaller companies. These are often considered safer investments, especially for investors seeking long-term growth or income stability.

2. Price-to-Earnings Ratio (pe_ttm: max 20):

   • Purpose: To identify stocks that are reasonably valued based on their earnings.
   • Rationale: A P/E ratio below 20 is often considered a sign that a stock is not overvalued. This filter helps avoid overpriced stocks and focuses on companies that may offer better value for investment.

3. Dividend Yield (dividend_yield_ttm: min 2%):

   • Purpose: To find companies that provide a steady income through dividends.
   • Rationale: A minimum dividend yield of 2% ensures that the selected stocks offer a reasonable return to investors in the form of dividends. This is particularly attractive for income-focused investors or those seeking a combination of growth and income.

4. Revenue 5-Year CAGR (revenue_5yr_cagr: min 5%):

   • Purpose: To focus on companies with consistent revenue growth over the past five years.
   • Rationale: A minimum compound annual growth rate (CAGR) of 5% in revenue indicates that the company has been growing steadily, which is a positive sign for future performance and sustainability.

Why Results Match:

• The filters collectively aim to identify large, stable companies that are reasonably valued, provide a steady income through dividends, and have demonstrated consistent revenue growth. These characteristics align with the general principles of sound investing.
• By focusing on large-cap stocks with a reasonable P/E ratio, the screener avoids speculative or overvalued stocks, which may carry higher risks.
• The inclusion of dividend yield ensures that the selected stocks provide an additional layer of return through income, which is appealing to many investors.
• The revenue growth filter ensures that the companies are not only stable but also growing, which is essential for long-term investment success.

This combination of filters provides a balanced approach to finding stocks that are likely to perform well over time, making them suitable for a wide range of investors.