What stocks to buy

Screening Filters

1. Market Cap ≥ $30B (market_cap: {min: 30000000000})

   • Purpose: Focus on large, established companies.
   • Rationale: When you ask “What stocks should I buy?” without specifying risk tolerance or niche preferences, a sensible default is to look at large-cap stocks. These tend to:
     • Be more stable than small caps
     • Have better liquidity (easier to get in and out, with tighter spreads)
     • Have more analyst coverage and publicly available information
       This makes them more suitable as “core” ideas for most investors.

2. Index Membership in S&P 500 or Nasdaq 100 (is_index_component: ['GSPC', 'NDX'])

   • Purpose: Restrict results to leading, benchmark-quality U.S. stocks.
   • Rationale:
     • The S&P 500 (GSPC) includes the largest, most established U.S. companies.
     • The Nasdaq 100 (NDX) focuses on major non‑financial companies, especially in tech and growth sectors.
       Limiting to these indices ensures you’re seeing:
     • Highly followed, high‑quality names rather than obscure tickers
     • Stocks with deep liquidity and strong institutional interest
       That aligns well with a broad question like “What should I buy?” where blue‑chip and top growth names are usually the starting point.

3. 5‑Year Revenue CAGR ≥ 5% (revenue_5yr_cagr: {min: 5})

   • Purpose: Make sure companies are actually growing their businesses, not just “big and slow.”
   • Rationale: A minimum 5% compound annual revenue growth over five years filters for:
     • Companies with a demonstrated growth trend, not just one good year
     • Businesses that are expanding their top line faster than inflation
       This helps identify stocks that have fundamental momentum, which is usually a key ingredient in “buy” ideas rather than stagnant or declining businesses.

4. Analyst Consensus = Strong Buy or Moderate Buy (analyst_consensus: ['Strong Buy', 'Moderate Buy'])

   • Purpose: Align with current Wall Street sentiment in your favor.
   • Rationale: Requiring at least a Moderate Buy and including Strong Buy:
     • Screens out names that analysts broadly view as Holds or Sells
     • Focuses you on stocks where the majority of covering analysts see upside and are willing to recommend purchase
       Since you’re directly asking what to buy, it’s logical to filter to stocks that professional analysts currently favor, rather than betting against consensus by default.

5. Analyst Target Price Above Current Price (target_price_upside_potential: ['MoreAbovePrice'])

   • Purpose: Ensure analysts see meaningful upside from today’s price.
   • Rationale: This requires that:
     • The average (or consensus) analyst target price is higher than the current share price by a non‑trivial margin
     • In other words, the stock is not trading at or above where analysts think it should be
       This ties your “what should I buy?” question directly to expected future gains, as implied by analyst targets, and avoids names that are already considered fully valued or overextended.

Why Results Match Your Question

• You asked a very broad question: “What stocks should I buy?”
  These filters translate that into a practical, quality‑focused shortlist:

  • Large, liquid, well‑known companies (market cap + index filters)
  • With proven growth (5‑year revenue CAGR ≥ 5%)
  • That analysts currently like (Strong/Moderate Buy)
  • And where analysts’ price targets imply upside from today (target_price_upside_potential)

• Taken together, the screen avoids:

  • Highly speculative microcaps
  • Stagnant or shrinking businesses
  • Stocks already priced at or above analyst fair value
    and concentrates on high‑quality, growth‑oriented, analyst‑favored names that more naturally fit the idea of “stocks to consider buying” for most investors.