Screening Filters
PriceAboveMA20 (Price above 20-day moving average)
- Purpose: Focus on stocks with short-term positive price momentum.
- Rationale:
- A price trading above its 20-day moving average often signals that buyers are currently in control and the stock is in a short-term uptrend.
- When you ask “Which stocks should I buy right now?”, a common interpretation is: “Show me names that are not breaking down and have some positive price action already underway.”
- This filter avoids stocks that are currently trending down or stuck below recent average prices.
RSI Category: moderate
- Purpose: Avoid stocks that are extremely overbought or oversold in the very short term.
- Rationale:
- RSI (Relative Strength Index) measures recent price strength. Extremely high RSI can mean a stock is overbought (and vulnerable to a pullback); extremely low RSI can mean oversold (and may be weak for a reason).
- By targeting “moderate” RSI, the screener avoids chasing overly extended moves while also avoiding names that might be falling knives.
- For someone asking what to buy now, this tends to find healthier, more stable setups rather than extreme, high-risk conditions.
is_index_component: GSPC (S&P 500 components only)
- Purpose: Limit the search to large, established U.S. companies.
- Rationale:
- S&P 500 constituents are generally larger, more liquid, and more scrutinized by the market and regulators.
- This reduces the risk of ending up in very illiquid, highly speculative names, which might not be appropriate for many “what should I buy now” investors.
- It aligns with a more mainstream, quality-focused universe rather than penny stocks or microcaps.
revenue_5yr_cagr ≥ 5%
- Purpose: Ensure the companies have demonstrated real business growth over the last 5 years.
- Rationale:
- A revenue compound annual growth rate (CAGR) of at least 5% suggests the business is expanding, not stagnating or shrinking.
- When considering buys, fundamental growth helps support the stock price over time and can reduce the likelihood that any strength is purely speculative.
- This filter leans you toward companies with underlying business momentum, not just price momentum.
P/E (TTM) between 10 and 30
- Purpose: Screen for valuations that are neither extremely cheap (potential value traps) nor extremely expensive (highly speculative growth).
- Rationale:
- P/E < 10 can indicate very cheap stocks, but often for good reasons (cyclical stress, structural decline, high risk).
- P/E > 30 can indicate expensive stocks where a lot of future growth is already priced in, increasing downside if expectations are not met.
- A 10–30 range is a “reasonable valuation” band for many sectors, balancing growth and risk.
- For “what to buy now,” this is a prudent middle ground that avoids extremes of valuation risk.
one_month_predict_return ≥ 0
- Purpose: Favor stocks where a model-based estimate suggests non-negative expected return over the next month.
- Rationale:
- This uses a predictive model (likely incorporating price, fundamentals, and other quantitative signals) to estimate short-term return.
- Requiring it to be ≥ 0 filters out names where the model sees a negative bias in the near term.
- It does not guarantee gains, but it aligns your candidate list with securities that, statistically, look at least modestly favorable over the next month rather than unfavorable.
Why Results Match Your Question (“Which stocks should I buy right now?”)
- The momentum filters (PriceAboveMA20 and moderate RSI) find stocks that are currently behaving well in the market—neither breaking down nor wildly overheated—making them more suitable right now as opposed to “maybe later if the trend changes.”
- The quality and stability filters (S&P 500 membership and 5-year revenue growth ≥ 5%) tilt you toward larger, established businesses with a proven growth track record, which is often more appropriate for general “what to buy” questions than speculative small caps.
- The valuation filter (P/E 10–30) keeps you away from the most stretched or most distressed valuations, aiming for a middle zone where risk and reward are more balanced.
- The predictive return filter (one_month_predict_return ≥ 0) adds a quantitative layer that explicitly looks at near-term prospects, consistent with the “right now” time frame of your question.
Together, these filters try to produce a list of reasonably valued, fundamentally growing, liquid large-cap stocks in short-term uptrends, with a quantitatively favorable (or at least not negative) near-term outlook—an evidence-based, conservative interpretation of “stocks to consider buying right now.”
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.