Best photonics stock to buy

Screening Filters

1. monthly_average_dollar_volume >= 500,000

   • Purpose: Ensures the stock is sufficiently liquid.
   • Rationale: For a “best photonics stock to buy” screen, liquidity matters because you want names that can be entered and exited without excessive slippage. This filter removes thinly traded stocks that may be harder to trade efficiently.

2. moving_average_relationship = PriceAboveMA200

   • Purpose: Selects stocks trading above their 200-day moving average.
   • Rationale: This is a common trend filter used to favor stocks with positive long-term price momentum. For a buy candidate, it helps focus on photonics stocks that are already in an established uptrend rather than weaker names.

3. themes = Photonics

   • Purpose: Narrows the universe to photonics-related companies.
   • Rationale: This directly matches the user’s request. Photonics companies may include firms involved in optical components, lasers, sensors, communications, and related technologies.

4. gross_margin >= 20

   • Purpose: Screens for businesses with at least moderate profitability at the gross level.
   • Rationale: Photonics is a technology-heavy industry where margins can vary widely. Requiring a gross margin of 20% or more helps exclude lower-quality businesses and favors companies with better pricing power or more efficient operations.

5. quarter_revenue_yoy_growth >= 0

   • Purpose: Requires non-negative recent revenue growth.
   • Rationale: This helps avoid companies with shrinking sales. For a “best stock to buy” search, it is generally better to focus on photonics names that are at least maintaining or growing their business.

6. annual_revenue_yoy_growth >= 0

   • Purpose: Requires non-negative full-year revenue growth.
   • Rationale: This adds a longer-term growth check, reducing the chance of selecting companies with only a temporary quarterly bounce. It supports finding more durable photonics businesses.

7. quarter_eps_yoy_growth >= 0

   • Purpose: Requires non-negative quarterly earnings growth per share.
   • Rationale: This helps identify companies where profitability is not deteriorating. In a sector like photonics, this filter can highlight firms with improving execution or operating leverage.

8. annual_eps_yoy_growth >= 0

   • Purpose: Requires non-negative annual earnings growth per share.
   • Rationale: This complements the quarterly EPS filter by checking the broader earnings trend. It helps ensure the company’s profit profile is not just temporarily improved.

9. pe_ttm <= 80

   • Purpose: Avoids extremely expensive stocks on a trailing earnings basis.
   • Rationale: Photonics stocks can sometimes trade at very high valuations due to growth expectations. This cap helps keep the screen from drifting into names with excessive valuation risk, while still allowing premium-growth stocks.

10. ps_ratio <= 20

• Purpose: Caps valuation on a sales basis.
• Rationale: Some photonics companies may have inconsistent earnings, so sales-based valuation is also useful. This filter helps avoid paying extreme multiples for revenue, which can be especially important in high-growth technology sectors.

Why Results Match:

• The screen is tailored to photonics stocks specifically, so it stays aligned with the user’s sector interest.
• It favors companies with liquidity, positive price trend, and fundamental strength rather than speculative, illiquid names.
• By requiring non-negative revenue and EPS growth, it focuses on businesses that are at least maintaining growth momentum.
• The gross margin and valuation caps help filter out lower-quality or overly expensive names, improving the odds of finding a more reasonable “best stock to buy” candidate.
• Overall, this creates a balanced screen for established, growing, and reasonably valued photonics companies rather than just the most speculative ones.