Cheap semiconductor stocks

Screening Filters

1. Price max = $20

   • Purpose: Find low nominal-priced stocks.
   • Rationale: The user asked for “cheap semiconductor stocks,” and price is the most direct way to identify stocks that trade at a lower share price. This helps surface stocks that appear affordable on a per-share basis.

2. Market cap category = small, mid

   • Purpose: Focus on smaller companies.
   • Rationale: Lower-priced semiconductor names are often small- or mid-cap companies rather than the large, well-established chip leaders. This filter helps exclude mega-cap names that may not fit the “cheap” idea the user is looking for.

3. Relative volume min = 1.5

   • Purpose: Require above-average trading activity.
   • Rationale: Cheap stocks can sometimes be illiquid or ignored by the market. A relative volume filter ensures the results include names that are actively traded, which can be more useful for investors looking to actually buy or sell them.

4. Industry = Semiconductors & Semiconductor Equipment

   • Purpose: Restrict the search to semiconductor-related companies.
   • Rationale: This directly matches the user’s industry preference. It removes unrelated stocks and ensures the results are truly semiconductor stocks.

5. P/E TTM max = 25

   • Purpose: Screen for reasonably valued stocks based on earnings.
   • Rationale: “Cheap” can also mean inexpensive relative to profits, not just low share price. A P/E cap helps identify semiconductor stocks that are not overly expensive compared with their trailing earnings.

6. P/S ratio max = 5

   • Purpose: Screen for reasonable valuation relative to sales.
   • Rationale: Many semiconductor companies may have volatile earnings, so price-to-sales is a useful backup valuation metric. This filter helps find companies that are not excessively valued even if earnings are uneven.

Why These Filters Work Together

• The industry filter makes sure the search stays focused on semiconductor companies.
• The price filter captures stocks that look cheap on a per-share basis.
• The P/E and P/S filters add valuation discipline, so the results are not just low-priced names, but also relatively inexpensive businesses.
• The market cap filter keeps the screen in the small- and mid-cap range, where cheaper semiconductor opportunities are more likely to be found.
• The relative volume filter improves practicality by emphasizing stocks with enough trading activity to matter.

Overall, these filters are designed to find semiconductor stocks that are affordable, reasonably valued, and actively traded, which is a good fit for the user’s request for “cheap semiconductor stocks.”