Instead of trying to come up with prompts to find stocks myself (only losers come up with ideas on their own).
I just asked ChatGPT to give me prompts to find stocks with potential.
I asked it to give me a quick explanation behind each prompt too.
The results were pretty interesting.
Note: You’ll need ChatGPT Plus and have the Boolio Invest plugin enabled for these to work.
It took a lot of trial and error for it to come up with good prompts. Some of the prompts it came up with were cool e.g. “Find companies with a market capitalization under $5 billion that have expanded into new geographical markets in the last 2 years.” but there was no way for ChatGPT to actually find the answer.
Here are the best prompts it came up with (that worked for me)
Prompt 1
Prompt: “Find stocks with a P/S ratio below the industry average, positive net income, and a dividend yield of over 2%.”
How it works: This prompt focuses on commonly available financial metrics like P/S ratio, net income, and dividend yield, allowing for a comprehensive analysis of potential value stocks.
Prompt 2
Prompt: “Search for stocks with a Price-to-Earnings (P/E) ratio below the sector median, a positive net income for the past 3 years, and a dividend yield above 3%.”
How it works: A P/E ratio below the sector median can indicate undervaluation. Consistent net income shows profitability, and a decent dividend yield provides income, making it a comprehensive approach to find potential value stocks.
Prompt 3
Prompt: “Search for technology stocks with a 3-year revenue growth rate above 10%.”
How it works: This prompt targets the technology sector and focuses on revenue growth, a key indicator of potential high growth.
Prompt 4
Prompt: “Find companies with a market capitalization under $2 billion that have increased their market share in the last year.”
How it works: This prompt looks for companies that are still small but are growing.
Prompt 5
Prompt: “List healthcare stocks with an R&D expense growth of over 5% in the last year.”
How it works: Focusing on R&D expense growth in the healthcare sector can uncover innovative companies.
Prompt 6
Prompt: “Identify stocks with a consistent track record of meeting or beating earnings estimates over the last 4 quarters and a P/B ratio below the industry average.”
How it works: Earnings estimates and P/B ratio are widely used in financial analysis. This prompt combines these factors to find stocks that may be undervalued and have strong operational performance.
Prompt 7
Prompt: “List stocks that are trading at least 20% below their 52-week high and have a Return on Equity (ROE) above the industry average.”
How it works: Stocks trading significantly below their 52-week high may be temporarily undervalued. A higher-than-average ROE indicates that the company is generating good returns on shareholders' equity, suggesting strong management.
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