With apologies to BCG's Growth Share Matrix, I present my version for evaluating public stocks.
Using Zacks.com’s stock screener, I downloaded all public stocks with: (1) a market cap above $100 billion, (2) an operating margin above 0%, and (3) a sales growth forecast above 0%. This screen gave me 118 stocks (including the Class B shares for GOOG/L). I then put those stocks in a scatter plot to identify the Stars:
[Growth Profit Matrix](https://drive.google.com/file/d/1pT_KYe5tiKicWRC60IJTz6aOa3CU0Agx/view?usp=sharing)
With no surprise, the semiconductor stocks NVDA and AVGO were the furthest into the Star region. PLTR, HOOD, LLY and TSM also made the cut. MA, APP and V are examples of high operating margin but lower revenue growth stocks.
For my Value Points calculation, I like stocks that have a combined operating margin and projected revenue growth of at least 40 (above the blue line). This could include Stars, Cash Cows and Question Marks.
Once I’ve identified the good companies, the next step, of course, is to determine whether they currently are overvalued, undervalued or appropriately priced. We will run that analysis on individual stocks over the coming weeks.