NVDA
NVIDIA
-- 139.400 INTC
Intel
-- 27.390 TSLA
Tesla
-- 354.110 GRAB
Grab Holdings
-- 5.300 SMCI
Super Micro Computer
-- 55.800 
Max Learns to Invest: Stock Selection Series - Chapter 5: How I pick my one perfect semiconductor stock from 100 options?
Welcome back to "Max Learns to Invest" – our story-driven series that explores moomoo's features through the eyes of Max, our avatar representing new investors like you. Got thoughts or questions? Share them below! We're rewarding 88 points for every comment that provides actionable suggestions or answers to our end-of-article questions. (Offer valid for one week after posting)
Hi my friends, Max here with the grand finale of our stock selection series. Today, I want to share my experience with a tool I've found really helpful: the Stock Screener. (Tap to try the feature)
I believe many of us have faced this problem: the sheer number of stocks out there can be overwhelming. How are we supposed to find the right ones? That's when I discovered the Stock Screener in moomoo. At first, all the options intimidated me, but I decided to give it a shot.
Here's how it went:
Step 1: Setting Our Criteria:
I've been curious about semiconductors lately, especially with all the discussions about the impact of Trump's return policies on chips. (Remember the Heat Map and Industry Chain from previous chapters? We can use them to help with this first step!) I thought it might be a good area to explore. Before I started, I came up with a rough strategy:
1. Look at smaller to mid-sized companies, as they might have more room to grow
2. The company should be profitable, but not too expensive
3. It should be showing good growth, as the semiconductor industry is expanding
4. I wanted a company with healthy profit margins, as that might indicate a competitive advantage
With this in mind, I set up these filters:
1. Industry: Semiconductors, Semiconductor Equipment & Materials
2. Market Cap: Between $1 billion and $100 billion (not too big, not too small)
3. P/E Ratio: Between 0 and 35 (profitable, but not overpriced)
4. Revenue CAGR: Above 10% (showing strong growth)
5. Gross Margin: Above 40% (indicating good profitability)
I'll be honest, I had to Google what some of these meant!
*Images provided are not current and any securities are shown for illustrative purposes only and are not recommendations.
Step 2: The Results
When I clicked "Search", I got a list of 7 stocks. Much easier to handle than scrolling through hundreds of companies.
*Images provided are not current and any securities are shown for illustrative purposes only and are not recommendations.
Step 3: Finding an Interesting Company
One company caught my eye: Rambus (RMBS). Its numbers looked good:
1. Market Cap: $6.16 billion
2. P/E Ratio: 19.19
3. Revenue Growth: 15.17% YoY
4. Gross Margin: 77.57%
But numbers aren't everything, right? So I dug deeper.
Step 4: Learning More
I found out Rambus specializes in designing, developing and licensing chip interface technologies and architectures. They're known for their work in memory and SerDes interfaces, as well as security technologies. With the increasing demand for faster and more efficient data processing, this seemed interesting. They've been growing steadily and have partnerships with major tech companies.
Step 5: Using What I've Learned
Remember the Industry Chain tool from before? I used it to see where Rambus fits in the semiconductor world. They primarily focus on intellectual property (IP) and don't manufacture chips themselves, which is an interesting business model in the current semiconductor landscape.
Step 6: My Decision
After this research, I added RMBS to my watchlist. I'm not buying yet, but I'll keep an eye on it.
Using the Stock Screener felt like having a helpful guide through the stock market. It didn't make decisions for me, but it showed me some options I might have missed.
I'm still learning, and I know I'll make mistakes. But tools like this make investing a little less confusing. It's nice to feel like I'm starting to understand how to look for potential investments, especially in tricky areas like semiconductors.
Explore it yourself under Markets > US(or other markets), or tap here to try. For more details, check the help center here.
Quick question in the end: What is your go-to filter in our Stock Screener and why?
Tap here to see my previous chapters in the Stock Selection Series >>
As we finish this series, thanks for coming along on this journey with me. I'm excited to announce that we'll be starting a new series soon: "Market Timing". We'll explore strategies and tools to help us understand when might be the best time to buy or sell stocks. It's going to be another exciting adventure!
Disclaimer: This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. See this link for more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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102362254 : My go-to filter on stock screener is the high profit & growth filter. It helps me spot companies with strong revenue growth n solid financial health which are key signs of good future performance. Using this filter, I can easily find stocks that have a better chance of giving great returns over time
JPT 102362254 : Where did you find that?
CNNT : I tried the screener to see if I can use the info as a basis for swing trading because I am interested in trying this out, but find the pre-work is daunting.
I used the screener to find fairly profitable and mid-price range companies that crossed the MACD & RSI golden cross and found about 10 companues in the list to further study, almost all I have never heard of as they are not usually being reported on.
Wow, this saved me so much time and effort!
COCO 2024 : Very good topic, learned
8Ch8mpi8n : It is great indicator that to identify and correcting
Tonyseng5421 : Personally, I feel.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Quite accurate.
chivas24 : a profitable company tells you if there is room to grow
mieapex : golden cross
EP36 : Follow the money!
New93 : you need the basic info to determine what options to sell
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