Screening Filters
Price: min $5, max $50
- Purpose: Ensure each stock’s share price fits within your $50 budget while avoiding very low‑priced, higher‑risk names.
- Rationale:
- Max $50: You can buy at least one whole share with $50 (assuming you’re not using fractional shares).
- Min $5: Excludes penny stocks and very low-priced shares, which are often more volatile, less liquid, and more speculative.
Market Cap: min $10,000,000,000 (>$10B)
- Purpose: Focus on large-cap companies, which tend to be more stable and established.
- Rationale:
- Large caps typically have more diversified businesses, stronger balance sheets, and more analyst coverage.
- This reduces the risk profile compared with small or micro-cap companies, which can be more volatile—important when starting with a small amount of money.
Region: United States
- Purpose: Limit results to U.S.-based companies.
- Rationale:
- U.S. markets are highly regulated, transparent, and liquid.
- Many investors have easier access to U.S. stocks through their brokerage, and information/disclosures are more readily available in English.
Listed Exchange: XNYS, XNAS, XASE (NYSE, Nasdaq, NYSE American)
- Purpose: Include only major U.S. stock exchanges.
- Rationale:
- These exchanges have stricter listing standards on financials, reporting, and governance.
- This helps avoid over-the-counter (OTC) or lightly regulated listings, which can be riskier and less liquid.
Net Margin: min 5%
- Purpose: Select companies that are meaningfully profitable.
- Rationale:
- A net margin ≥5% indicates the company is not just barely breaking even but generating a solid profit on its sales.
- Profitable companies are generally more resilient and better able to reinvest, pay dividends, or weather downturns.
P/E (TTM): min 5, max 30
- Purpose: Filter for reasonably valued companies, avoiding both extreme cheapness and extreme overvaluation.
- Rationale:
- Min 5: Excludes ultra-low P/E stocks that may be “value traps” (cheap for a reason, such as serious problems).
- Max 30: Avoids very high P/E “hype” stocks where a lot of future growth is already priced in, which can be riskier.
- Keeps you in a middle band of valuations that are more typical for stable, quality companies.
Analyst Consensus: Strong Buy, Moderate Buy
- Purpose: Focus on stocks that professional analysts are generally positive on.
- Rationale:
- “Strong Buy” or “Moderate Buy” means a majority of covering analysts expect the stock to perform well relative to the market or sector.
- While not a guarantee, this uses expert research as one additional filter to tilt toward higher‑quality ideas.
Why Results Match Your Question
- You asked for a stock to invest in with $50:
- The price cap of $50 ensures each candidate stock is affordable with your amount.
- The price floor of $5 helps avoid highly speculative penny stocks.
- The combination of large market cap, profitability (net margin ≥5%), and reasonable valuation (P/E 5–30) aims to surface solid, established businesses, not just cheap or random names.
- Limiting to U.S. companies on major exchanges further increases transparency and liquidity—important for newer or smaller investors.
- The analyst consensus filters add a layer of professional judgment, highlighting companies that experts currently view favorably.
Together, these filters translate your broad question (“what stock with $50?”) into a focused search for affordable, higher-quality, relatively lower-risk U.S. stocks that you can realistically buy with your available capital.
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.