Unearth Hidden Tech Gems and Maximize Your Returns With InvestingPro

investing.com:

The Nasdaq 100 serves as the primary benchmark for technology sector companies, renowned for their strong performance in bull markets, often surpassing traditional value companies.

For uncovering stocks with promising returns, the 'Technology Gems' strategy within the InvestingPro tool is a valuable resource.

Let's examine the criteria steering the selection of companies and factor in additional considerations for thorough screening, ensuring the curation of a watchlist featuring stocks with significant upside potential.

Every strategy has its foundation in a few key factors that help sift through a wide array of companies. Here's a breakdown of how these factors come into play for the «Technology Gems» strategy:

By focusing on these aspects, we aim to pinpoint standout companies in the technology sector that meet our specific criteria.

Source: InvestingPro

To enhance the selectivity of the chosen companies, users can leverage the flexibility in creating investment strategies in the InvestingPro tool.

One effective addition, as suggested earlier, is incorporating leveraged free cash flow above $100 million. This helps filter out companies with a potentially significant portion of debts in their total cash flow.

Once this adjustment is implemented, users can then narrow down their choices from the initial list of 21 companies listed on the US stock market. Despite these parameters, there's still room for further refinement using additional indicators.

Notably, paying attention to the fair value indicator is recommended. This indicator offers insights into whether a company is undervalued or overvalued based on available investment models, providing a valuable layer of analysis in the selection process.

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