Sectors That Typically Pass Screening

While every company must be screened individually, some sectors tend to have higher rates of compliance due to the nature of their business activities.

Technology

Software, cloud computing, and hardware companies generally earn revenue from permissible activities. Their products and services are inherently neutral. However, financial ratios still need to be checked.

Healthcare

Pharmaceutical companies, medical device manufacturers, and health services typically pass business activity screening. The core activity — treating illness and improving health — is permissible.

Consumer Goods

Companies producing food (non-alcohol), clothing, household products, and personal care items tend to pass. Check for alcohol-related product lines in diversified consumer companies.

Real Estate

Real estate development and management companies often pass. However, some may have exposure to conventional mortgage financing, which affects financial ratio screening.

Industrials & Materials

Manufacturing, construction, and raw materials companies usually have straightforward business models that pass activity screening.

Always Screen Individually

Sector-level generalizations are starting points, not conclusions. A company in a "typically compliant" sector may still fail on financial ratios or have a subsidiary in a prohibited business.