I've posted before how I compare a company's projected sales growth and trailing operating margin to its operating multiple (enterprise valued divided by projected operating profit) to find investments. Here is my latest screen:
First, I look for stocks with a minimum score of 40 for combined sales growth and operating margin. I call this Value Points, but its also known as "Rule of 40". Then I compare the stock's Value Points to its operating multiple to calcuate a Value Score. A Value Score above 2.0 is a buy; above 3.0 is a strong buy. Below 1.0 is a sell.
With the hyperscalers announcing they are doubling their cap ex budgets for 2026, NVDA and MU are my bet the farm stock picks. Their Value Scores are 7.12 and 6.34, respectively.
I'm using a free stock screener that has a bunch of errors. Please do your own research before making any buy decision.
NVDA and MU are my bet the farm picks
byu/Constant-Bridge3690 ininvesting
Posted by Constant-Bridge3690
2 Comments
VOO and QQQM are my “bet the farm” picks. Best of luck to you.
how do you feel about MU, given the news today from Samsung about their capability to match MU and SNDK?
https://sherwood.news/markets/sandisk-and-micron-slip-as-samsung-rushes-new-product-into-production/
It was the reasoning given on why MU and SNDK was slipping today.