What stocks would you buy right now

Screening Filters

1. PriceAboveMA200 (Moving Average Relationship)

   • Purpose: Include only stocks whose current price is above their 200‑day moving average.
   • Rationale:
     • The 200‑day moving average is a widely used indicator of long‑term trend.
     • Price above this line typically signals an uptrend or at least a healthier technical picture, rather than a stock that’s in a prolonged downtrend.
     • For “what to buy right now,” this helps avoid names that are technically broken or still in clear decline.

2. is_index_component = GSPC (S&P 500 Members Only)

   • Purpose: Restrict the universe to companies that are constituents of the S&P 500 index.
   • Rationale:
     • S&P 500 membership implies size, liquidity, and a minimum level of financial quality and stability.
     • It helps avoid very small, illiquid, or highly speculative stocks that might be riskier or harder to trade.
     • For a “what to buy now” question, focusing on S&P 500 names improves practicality (tight spreads, high trading volume, more analyst coverage).

3. Return on Equity (ROE) ≥ 15%

   • Purpose: Select companies that generate relatively high profitability on shareholders’ equity.
   • Rationale:
     • ROE is a core measure of how efficiently a company uses investor capital to generate profits.
     • A 15%+ threshold filters for businesses with strong competitive positions, good management, or both.
     • Higher‑ROE companies tend to compound value more effectively over time, which aligns with wanting strong performance from stocks you buy today.

4. EPS 5‑Year CAGR ≥ 8%

   • Purpose: Require that earnings per share have grown meaningfully over the last five years.
   • Rationale:
     • This looks at the trend in underlying business performance, not just a snapshot of one good year.
     • A minimum 8% annual growth rate suggests a company that is expanding its profits at or above a solid long‑term pace.
     • For buying now, it helps ensure you’re looking at companies with a proven growth track record, not just hopes or one‑off spikes.

5. P/E (TTM) between 10 and 30

   • Purpose: Filter out stocks that are either very cheap (possibly distressed) or extremely expensive (possibly overhyped).
   • Rationale:
     • P/E < 10 can indicate deep value or structural problems; requiring at least 10 removes some of the most distressed or cyclical names.
     • P/E > 30 can indicate high expectations and higher valuation risk; capping at 30 avoids the most expensive growth stocks where small disappointments can hit price hard.
     • This range aims for a balance: quality and growth at a valuation that’s not extreme by broad market standards.

Why Results Match Your Question

• You’re asking what to buy right now, so the screener:
  • Focuses on financially strong, proven businesses (S&P 500, high ROE, 5‑year EPS growth).
  • Ensures they’re not in a major downtrend at the moment (price above 200‑day MA).
  • Keeps valuations within a reasonable band to reduce the risk of hugely overpaying (P/E 10–30).

Together, these filters don’t guarantee top performance, but they deliberately tilt the list toward established, profitable, growing companies that are technically sound and not outrageously priced—sensible candidates to research further when deciding what to buy now.