Technology stocks

Screening Filters

1. Sector: ['Software & IT Services', 'Technology', 'Technology Equipment', 'Telecommunications Services']

   • Purpose: Focus the search specifically on technology-related businesses.
   • Rationale:
     • “Technology” and “Technology Equipment” capture core tech companies (semiconductors, hardware, networking, etc.).
     • “Software & IT Services” targets software vendors, cloud platforms, and IT consulting firms—key parts of the tech ecosystem.
     • “Telecommunications Services” is often grouped with tech because it includes network operators and infrastructure critical to digital connectivity.
     • Together, these sectors align the results with the broad idea of “technology stocks,” rather than mixing in non-tech industries.

2. Market Cap: min 50,000,000,000 (≥ $50B)

   • Purpose: Limit results to large-cap technology companies.
   • Rationale:
     • The user asked generally for “Technology stocks,” which is often interpreted as the major, more established names rather than tiny or speculative firms.
     • A $50B+ threshold focuses on well-known, financially stable tech leaders with significant market presence and liquidity.
     • This avoids very small or mid-cap tech stocks, which can be more volatile and less researched.

3. Listed Exchange: ['XNYS', 'XNAS', 'XASE'] (NYSE, NASDAQ, AMEX)

   • Purpose: Restrict to major U.S. exchanges.
   • Rationale:
     • Technology investors commonly look at NASDAQ and NYSE for large tech names; AMEX is included for completeness of U.S. listings.
     • These exchanges have stricter listing standards and better liquidity, making them suitable for most investors.
     • This avoids OTC and less-regulated markets that might include riskier or less transparent tech firms.

4. Net Margin: min 10 (≥ 10%)

   • Purpose: Ensure the tech companies are meaningfully profitable.
   • Rationale:
     • A net margin above 10% screens for businesses with solid profitability rather than just high revenue growth.
     • In tech, many early-stage or speculative firms may not be profitable; this filter focuses on more financially mature and efficient companies.
     • This aligns with a more quality-focused subset of technology stocks.

5. EPS 5-Year CAGR: min 10 (≥ 10% annual EPS growth over 5 years)

   • Purpose: Capture technology stocks with strong, sustained earnings growth.
   • Rationale:
     • Tech investing is usually growth-oriented; a 10%+ compound annual growth rate in earnings shows the company is expanding its profitability.
     • Using a 5-year horizon smooths out short-term volatility and emphasizes consistent performance.
     • This helps isolate tech companies that are not only profitable but growing at an attractive pace.

6. Analyst Consensus: ['Strong Buy']

   • Purpose: Highlight technology stocks that professional analysts currently view very positively.
   • Rationale:
     • A “Strong Buy” consensus suggests that the majority of covering analysts see favorable prospects relative to current price.
     • While not a guarantee, it is a useful sentiment and fundamentals check layered on top of the financial filters.
     • This narrows the list to tech companies with both solid numbers and strong external endorsement.

Why Results Match “Technology Stocks”

• The sector filters directly ensure all results are within key segments of the technology universe (software, hardware, IT, telecom-related).
• The U.S. exchange and large-cap filters tailor the results toward major, well-known technology companies that many investors mean when they say “technology stocks.”
• The profitability (net margin) and growth (EPS 5-year CAGR) filters refine the universe to higher-quality tech names with strong business performance.
• The “Strong Buy” analyst consensus adds a final layer of selectivity, focusing on tech stocks that both the numbers and analysts currently favor.

Overall, these filters don’t just find “any” technology stock; they bias the results toward large, profitable, growing, and well-regarded tech companies that many investors are specifically interested in.