Find me good tech stocks

Screening Filters

1. Market Cap ≥ $10,000,000,000 (Large-cap only)

   • Purpose: Focus on larger, more established tech companies.
   • Rationale:
     • “Good” tech stocks often implies stability, proven business models, and liquidity.
     • Large-cap firms (≥ $10B) are generally less volatile, have stronger balance sheets, and are widely followed by analysts, which reduces the risk of unknowns compared with small, speculative names.

2. Sector: Software & IT Services / Technology / Technology Equipment

   • Purpose: Limit results to the core technology space.
   • Rationale:
     • These sectors encompass most traditional “tech stocks” (software vendors, IT services, hardware, equipment makers).
     • It avoids non-tech sectors that might have a small tech angle but aren’t what investors usually mean by “tech stocks.”

3. Industry: Semiconductors & Equipment, Communications & Networking, Computers/Phones/Electronics, Software & IT Services

   • Purpose: Narrow down to key tech industries with strong structural demand.
   • Rationale:
     • These industries are central to the tech ecosystem: chips, networking gear, consumer devices, and software.
     • They include many of the market’s long-term winners and household tech names.
     • This avoids fringe or less scalable tech-related niches that may not fit the user’s idea of “good tech stocks.”

4. Themes: AI Beneficiary, Cloud, Cybersecurity, Semiconductors, SaaS, IoT, 5G, Big Data, Blockchain, E‑Commerce, Digital Payments, etc.

   • Purpose: Target companies exposed to major, long-term technology trends.
   • Rationale:
     • Good tech stocks today are often those benefiting from durable secular growth themes: AI, cloud computing, cybersecurity, digital payments, e‑commerce, etc.
     • Thematic filters help ensure the list is not just “tech” by classification, but also positioned in growth areas where demand is likely to expand for years.

5. Net Margin ≥ 10%

   • Purpose: Ensure companies are not just growing, but also meaningfully profitable.
   • Rationale:
     • A net margin above 10% suggests solid pricing power, cost control, and a sustainable business model.
     • Many tech companies can grow fast but lose money; this filter aligns with “good” as in quality and profitability, not just hype or revenue growth at any cost.

6. 5-Year Revenue CAGR ≥ 10%

   • Purpose: Require consistent, above-average growth over a multi‑year period.
   • Rationale:
     • A 10%+ compound annual growth rate in revenue over 5 years points to durable demand and strong execution, not just a one-time spike.
     • This matches the idea of “good tech stocks” as companies that have been growing reliably, not stagnating or shrinking.

7. P/E (TTM) between 10 and 40

   • Purpose: Screen for reasonably valued growth—avoid both very cheap (possible value traps) and extremely expensive (highly speculative) names.
   • Rationale:
     • P/E < 10 in tech can indicate structural problems, slowing business, or one-off accounting issues.
     • P/E > 40 often reflects very high expectations and higher downside risk if growth slows.
     • A 10–40 range balances growth and valuation: still growth-oriented, but not at any price.

Why Results Match “Good Tech Stocks”

• They are clearly in technology, both by sector/industry and by alignment with major tech themes (AI, cloud, semis, cybersecurity, etc.).
• They are established and liquid (large-cap), which suits most investors looking for “good” rather than purely speculative names.
• They combine solid profitability (net margin ≥ 10%) with sustained growth (5-year revenue CAGR ≥ 10%), indicating quality businesses, not just stories.
• Valuation is screened for reasonableness (P/E 10–40), helping avoid the extremes of distressed and bubble-like tech stocks.

Together, these filters aim to surface large, profitable, growing, thematically relevant tech companies that many investors would consider “good” core or growth holdings rather than speculative bets.