About

Who this is for

If you’ve ever opened a stock screener and immediately had to filter out banks, insurers, alcohol, tobacco, and gambling names by hand, this site is for you. Halal Stock Picks does the screening in the background and shows you only the companies that pass AAOIFI’s business-activity and financial-ratio tests, ranked by a transparent technical-analysis score.

We don’t manage your money, recommend personalized portfolios, or take custody of assets. We’re a publication — like a financial newsletter, but algorithmic and live.

How the halal screen works

Every ticker passes three checks before it can appear as a buy candidate:

1. Business activity— sector and industry are matched against an exclusion list (conventional banks, credit services, insurance, capital markets, asset management, mortgage finance/REITs, alcohol, tobacco, gambling, aerospace & defense). We also keyword-scan the company’s business summary for pork, adult content, cannabis, and primary interest-based lending.
2. Financial ratios (AAOIFI core + slight practitioner tightening) — fundamentals pulled from Yahoo Finance with accounts receivable + annual net income from SEC EDGAR XBRL filings. We enforce:
   • Interest-bearing debt ≤ 30% of market cap (AAOIFI ceiling 33%)
   • Cash + interest-bearing securities ≤ 30% of market cap (AAOIFI ceiling 33%)
   • Accounts receivable ≤ 45% of market cap (AAOIFI ceiling 49%)
   The slight tightening matches how Zoya / Musaffa / IdealRatings interpret the standard in practice — “33% is a ceiling, not a target.”
3. Profitability filter (practitioner overlay) — we hard-fail companies with negative trailing-year net income. AAOIFI Standard 21 itself does not require profitability; we add this filter because most retail Shariah screeners treat persistent losses as a going-concern risk that should pause investment. This is the filter that catches names like RIVN and LCID that pass the ratio screens but fail at major retail screeners.

Not computed:the AAOIFI 5%-of-revenue non-permissible-income test. That field (revenue from haram activities — interest income, carbon credits, certain advertising, etc.) isn’t available in any structured public source. Real screeners categorize it manually via segment-revenue analysis.

Per-ticker overrides. On top of the automatic screen, the operator maintains a small registry of manual block and allow overrides — for cases where a major retail screener (Zoya, Musaffa, Wahed) flags a name on criteria our auto-screen can’t compute, or where a name we block on cyclical losses is widely held by halal funds. Each override cites its source. When an override is applied, the ticker page shows an explicit operator override tag.

The screen is best-effort and impersonal. It is not a substitute for review by a certified Shariah board — see our disclaimer for the full caveats. Each ticker page links to Zoya and Musaffa so you can confirm against the major retail screeners.

How the signals work

For every halal-passed ticker, we compute a snapshot of classical technical indicators on ~280 days of daily OHLCV:

• Trend — Simple moving averages (SMA 50 / 200)
• Momentum — RSI(14) and MACD(12/26/9)
• Location — Bollinger Bands position (%B)
• Risk quality — ATR(14)-based stop width vs. recent swing low

These combine into a deterministic 0–100 composite score: trend (35) + momentum (35) + location (15) + risk quality (15). A ticker becomes a BUY when the score is ≥ 60 andprice is above the SMA200 (we don’t fight long-term downtrends). Otherwise it’s a HOLD.

Stops are set at max(2 × ATR, swing-low − 1%) from entry, and targets are 2R from the stop — so every signal has a fixed 2:1 reward-to-risk ratio. The timeframe is ~20 trading days.

Self-evaluating confidence

Every signal we publish is tracked. Once a ticker has at least 5 closed signals(hit target, hit stop, or expired), we display its win rate and average P&L on its detail page. Until then, the confidence card simply says “needs more trials” — we’d rather show no number than a noisy one.

This is intentionally honest about cold-start uncertainty. It’s also the foundation for any future ML scoring: every closed outcome is a labeled training example.

Principles

• Educational, not advisory. No personalized recommendations, ever. The same signal is shown to every reader.
• No auto-trading. We do not execute orders, hold custody, or integrate with brokerage APIs for trade placement.
• Long-only. Short selling is debated in Islamic finance and the outcome evaluator can’t fairly judge it without margin/borrow accounting. So we don’t generate sell-short signals.
• Transparent math. Hover any score in the dashboard or ticker page to see exactly how the four sub-scores combined.
• No AI marketing. The current engine is deterministic technical analysis. If we ever add machine learning, we’ll say so explicitly and explain what it is.

Editorial scope & the 🍉 marker

Beyond the AAOIFI screen, this publication applies an editorial overlay covering issuers with material ties to Israel. Two layers:

• Issuers incorporated in Israel are not covered. This is an editorial scope choice, not a financial judgment. The screen simply excludes them.
• US-listed companies are marked with a 🍉 if they have documented material ties. Two inclusion lanes:
  • Occupation-tied — military supply, settlement-area infrastructure, or government services that enable occupation, documented in at least two of three activist databases: AFSC Investigate, Who Profits, UN OHCHR settlements database.
  • Operational footprint— substantial R&D centers, manufacturing operations, or absorption of Israeli companies through M&A, documented in company filings, press, or the BDS Movement list.

Hover the marker on any flagged ticker to see the specific rationale and the sources cited for that name.

The marker is informational. Flagged tickers still appear in the dashboard and are still scored normally — readers decide whether the flag matters for their own investment criteria.

Contact

Email hello@halalstockpicks.com.

See also our disclaimer, terms of use, and privacy policy.