What’s a good tech stock to buy

Screening Filters

1. Market cap category: mid, large, mega

   • Purpose: Focus on established US tech companies rather than very small speculative names.
   • Rationale: When someone asks for a “good” stock to buy, larger companies are often a better starting point because they tend to have more liquidity, stronger business visibility, and less extreme volatility than small caps.

2. Moving average relationship: PriceAboveMA200

   • Purpose: Screen for stocks in a long-term uptrend.
   • Rationale: A stock trading above its 200-day moving average is generally considered to have positive momentum and healthier technical strength, which can be useful when looking for a better entry point in a strong name.

3. Sector: Technology

   • Purpose: Narrow the universe specifically to US tech stocks.
   • Rationale: This directly matches the user’s request for a “US tech stock,” ensuring the results stay relevant to the sector they want exposure to.

4. Quarter revenue YoY growth: min 0

   • Purpose: Require at least non-negative revenue growth.
   • Rationale: This filter helps avoid tech companies whose top-line performance is shrinking. Revenue growth is a basic sign that the business is still expanding or at least holding steady.

5. Quarter EPS YoY growth: min 0

   • Purpose: Require at least non-negative earnings growth.
   • Rationale: Positive or stable EPS growth suggests the company is not only growing sales but also converting that growth into profitability, which is often important when screening for quality stocks to buy.

6. P/E TTM: max 40

   • Purpose: Avoid excessively expensive valuations.
   • Rationale: Tech stocks can trade at high multiples, but capping P/E at 40 helps filter out the most stretched names and keeps the list closer to companies with more reasonable valuation profiles.

Why Results Match:

• The screen is designed to find US technology companies that are large enough to be more established, technically strong, and fundamentally growing.
• By requiring revenue and EPS growth, it avoids weak or deteriorating businesses.
• By limiting P/E, it reduces the chance of selecting stocks that may already be priced too aggressively.
• Overall, this combination aims to identify higher-quality tech stocks that may be more suitable for a buy candidate than speculative or financially weak names.