First, a quick reality check
No screener (or analyst) can tell you with certainty which stocks you “should” buy or which will go up next. What we can do is tilt the odds in your favor by filtering for financially solid, reasonably valued companies in an uptrend. That’s what these filters are trying to do.
Screening Filters
is_index_component: GSPC (S&P 500 components)
- Purpose: Limit results to U.S. large-cap stocks in the S&P 500 index.
- Rationale:
- The S&P 500 contains major, established U.S. companies with higher reporting standards and liquidity.
- Sticking to this universe reduces the risk of tiny, speculative names and focuses on businesses many long-term investors actually hold.
moving_average_relationship: PriceAboveMA200
- Purpose: Include only stocks whose current price is above their 200‑day moving average.
- Rationale:
- The 200‑day moving average is a widely used long‑term trend indicator.
- Price above the 200‑day MA suggests the stock is in a longer-term uptrend instead of a prolonged downtrend.
- This aligns with your question about what to buy now: you’re screening for names with positive momentum rather than trying to catch falling knives.
net_margin: min 10 (Net profit margin ≥ 10%)
- Purpose: Focus on companies that convert at least 10% of revenue into bottom-line profit.
- Rationale:
- Net margin measures how efficiently a company turns sales into actual earnings after all expenses.
- A margin of 10% or more is a sign of solid profitability and often some competitive advantage (pricing power, cost control, strong positioning).
- This helps avoid low‑quality companies that grow revenue but barely make any profit.
return_on_equity: min 10 (ROE ≥ 10%)
- Purpose: Ensure the company is generating at least a 10% return on shareholders’ equity.
- Rationale:
- ROE shows how effectively management uses investors’ capital to generate profits.
- A minimum of 10% is a common threshold for “quality” businesses, filtering out capital‑inefficient companies.
- This pushes the results toward businesses that create value rather than just consume capital.
pe_ttm: min 10, max 30 (P/E ratio between 10 and 30)
- Purpose: Filter for stocks with valuations that are neither extremely cheap nor excessively expensive.
- Rationale:
- P/E below 10 can sometimes indicate deep value, but also distress or structural problems; the min of 10 avoids the most potentially troubled names.
- P/E above 30 often implies very high growth expectations and higher downside risk if growth disappoints; the max of 30 aims to avoid the frothiest, most speculative valuations.
- This band targets reasonably valued, established companies rather than extreme outliers.
Why These Results Match “What US stocks should I buy right now?”
- US, mainstream, liquid names: By focusing on S&P 500 members, you get large, well‑followed U.S. companies rather than obscure or illiquid stocks.
- Financial strength and quality: The net margin ≥ 10% and ROE ≥ 10% filters target profitable, relatively efficient businesses instead of weak or marginally profitable ones.
- Reasonable valuation: The P/E 10–30 constraint avoids both many distressed “value traps” and the most overhyped growth names, steering you toward a middle ground of more reasonably priced stocks.
- Positive trend “right now”: The price above 200‑day moving average filter ensures the stocks are currently in long‑term uptrends, aligning with the idea of candidates that are already performing relatively well rather than trying to time a turnaround.
Together, these filters don’t guarantee winners, but they narrow the U.S. universe to established, profitable, reasonably valued companies in an uptrend, which is a sensible starting point for deciding what to buy 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.