Best underrated semiconductor stocks

Screening Filters

1. market_cap_category: mid, large, mega

• Purpose: Focus on established semiconductor companies rather than very small speculative names.
• Rationale: “Underrated” usually means a stock may be overlooked or not fully appreciated by the market, but still has a meaningful operating base. Mid-, large-, and mega-cap names are more likely to have real business scale, liquidity, and enough analyst coverage to assess whether they are being underappreciated.

2. industry: Semiconductors & Semiconductor Equipment

• Purpose: Restrict the screen to the exact sector the user asked about.
• Rationale: This ensures the results are truly semiconductor-related, including chipmakers, foundry-related firms, and equipment suppliers, which are all relevant candidates when looking for “best underrated semiconductor stocks.”

3. revenue_ttm min: 1

• Purpose: Exclude companies with no meaningful revenue.
• Rationale: This helps filter out early-stage or non-operating names and keeps the list focused on real businesses with established sales, which is more appropriate for identifying overlooked but legitimate semiconductor stocks.

4. return_on_equity min: 0.01

• Purpose: Require at least some level of shareholder profitability.
• Rationale: A positive ROE suggests the company is generating value from equity capital. For an “underrated” stock screen, this helps avoid weak or chronically unprofitable companies and points toward firms that may be undervalued relative to their financial quality.

5. quarter_revenue_yoy_growth min: 0.01

• Purpose: Select companies with at least modest year-over-year revenue growth.
• Rationale: Growth is important in semiconductors, where demand cycles can change quickly. This filter helps identify companies that are still expanding, which can indicate that the market may be overlooking improving fundamentals.

6. pe_ttm max: 30

• Purpose: Keep valuations from becoming too expensive.
• Rationale: “Underrated” often implies the stock may not be fully priced for its earnings power. Limiting P/E to 30 helps avoid extreme valuation names and makes the screen more likely to surface stocks that could be reasonably valued or overlooked.

7. analyst_consensus: Strong Buy, Moderate Buy, Hold

• Purpose: Keep names that have at least some level of analyst support or neutral-to-positive sentiment.
• Rationale: This helps identify semiconductor stocks that are not widely disliked by the market. A stock can still be “underrated” if sentiment is only moderate or not overly enthusiastic, while excluding names with strong negative consensus.

Why Results Match:

• The screen stays tightly focused on the semiconductor sector, which directly matches the user’s request.
• It favors established companies with real revenue and profitability, helping avoid speculative names that are less suitable for a “best underrated” search.
• It looks for growth and reasonable valuation at the same time, which is a strong combination for finding stocks that may be underappreciated relative to fundamentals.
• It allows for stocks that are not necessarily top darlings of the market, since “underrated” often means good businesses that are not priced too aggressively or overly hyped.
• The analyst consensus filter helps surface names that still have credible support, increasing the chance that the screen finds overlooked opportunities rather than weak or controversial stocks.