Free Stock Market Education, a 10 module course, including video and eBooks
PRO Stock Market Training.  The Liberated Stock Trader Book + 16 Hours of Video Education - for PC, Mac, Ipad, Iphone, Android
Take a look at our Stock Market Trading Coaching and Mentoring Services
Feb
17

Stock Screener Review – Finding Stocks Using Stock Screening.

By

So far we have discussed what is important in finding great stocks and how important it is to let the numbers speak for themselves. I also showed you the principles of EPS (Earnings Per Share) and EPS% increases.

However, I have not shown you how to find the actual stocks that could form your base list of stocks to review in detail.
Here is the process I use to find winning stocks.

  1. Understand what you are looking for. (Fundamentals – EPS% Acceleration)
  2. Use your selection criteria to narrow down the 7200 stocks on the US Stock Markets. (Stock Screening)
  3. From your Screened List, you can then review in detail further fundamentals.
  4. Learn a little about the industry of the stocks you are interested in.
  5. Analyse the Stock Pattern, to assess when to BUY “Charting”
  6. Work out your Entry and Exit Strategy

So, this section is explicitly about filtering out the junk to find the Gems.

This is known in the industry, as Screening for Stocks. Essentially filtering out stock based on criteria.The problem at the moment is there are many Stock Screeners on the web today but many of them want you to pay, or many of them do not allow you to select the relevant criteria. Preferring to give you options to select many indicators excluding EPS% increases.

I reviewed the following stock screeners and found them all to be lacking the relevant criteria for us to be able to find the stocks we want to see.

AOL, Google Finance, Yahoo Finance, ZACKS, Morningstar. Some offered Premium Upgrades so you pay for the screener service.

But luckily we do not need to do this. I found one that in my opinion checked all the boxes and would be really worth using.  NASDAQ Stock Screener.

(Click to enlarge)

Although the NASDAQ exchange provides this screener, the screener can be used on all US Exchanges, which is an absolute must.
The Criteria I used to filter the stocks to potential Winner are listed here.

  1. Close Price >= $4 – this is the Share Price of the Stock at last market close. Use this to filter out Penny Stocks, there is a reason share price of a stock can be so small, and it is not usually a good reason, stock decline in price, because the companies behind the stock are usually run poorly, or are money little if any money.
  2. Market Capitalization >= $200 Million. This is the worth of all the outstanding stocks added together. Essentially the worth of the company. You could use a figure of $100 Million, of $50 Million if you wish, this depends on what you personally think constitutes a stable business size. Although the phrase coined recently is “too big to fail”, which sends shivers of paranoia through the private investor.
  3. EPS % Change Last Quarter >= 30% This is the % increase of the EPS for the last three months. I set this a 30%, to show us stocks performing strongly.
  4. EPS % Growth 1 Year >= 50%. Combined with the previous criteria, this helps us separate the men for the boys. This means over the last year the earning have increase over 50%. Never a bad thing.
  5. Projected EPS Change Current Quarter >= 30%. This means the companies estimated Earnings for this quarter. In the current climate you could drop this to 20% if you wish, as demand is contracting a lot, so 20% would still be healthy.

This is not an endorsement to buy these stocks this is a listing of stocks with good fundamentals, at the time of publishing.

Learn Stock Market Trading and Investing with FREE Education and Training on Stock Screening, Stock Charts, Candlesticks, Technical Analysis & Fundamental Analysis and Stock Chart Indicators, Trading Academy Membership is free register here.

The High Quality / High Resolution Liberated Stock Trader Pro    Training Course

Do you want to fast track your future? Then go PRO

Buy the PRO Training Training Package and receive 16 hours of lessons and the Print Edition of the Liberated Stock Trader Book – fast forward your future.

Guiding you through the maze of stock market investing to give you a uniquely practical and comprehensive knowledge, this book will focus on the four pillars of success.

FUNDAMENTAL ANALYSIS - Learn how to analyze the health of the business climate and how to find great companies using our practical stock screening guide.

TECHNICAL ANALYSIS Chart Reading is not Voodoo, it is science. YOU will gain an incredible understanding of expert charting techniques, covering the most important methods, indicators and tactics, to enable you to time your trades to perfection.

MONEY MANAGEMENT Understand how many stocks to buy, when to buy them, how much to invest and when to sell using expert stop-loss strategies.

STOCK MARKET STRATEGY Develop your own stock market strategy and learn how to create your own winning stock system.


Facebook comments:

comments

Comments

  1. Saltsy says:

    Finally someone who explains all you need to know in one place in layman’s terms.

    Good job Barry.

  2. Muraliram Narasimhan says:

    Mostly this screen looks for EPS growth.
    Whats your thought on also looking for ROI,Sales growth , cash growth ?

  3. barrydmoore says:

    ROI I do not scan for, however P/E, Revenue Growth, Long Term Debt to equity ratio and volume surge are all good measures. In the book I included detailed scans for searching for different types of Stock, such as fast growth companies, cyclicals, recoveries and stalwarts, in also includes lesson on how to compare companies in the same industry. Over time I will release some of these lessons to the website.

    thanks for asking.

  4. Great post! Is there a way I can subscribe to the blog and receive email updates? Thanks.

  5. barrydmoore says:

    you sure can, register as a member, add the RSS feed, or click on “get email updates” in the top left bar.

  6. philip arcara says:

    barry, a good stock screener that i use which is free that you might want to take a look at and maybe recommend is at finviz.com it gives you everything you could want for selections. it even lets you pick technical options candlestick patterns such as a doji. i think you would like it

  7. barrydmoore says:

    Hi Philip, I just checked out finviz.com, you are right it looks really good, and it is very fast. Will check it out in more detail in a future session on stock screening. Thanks for the tip.

  8. Keith Lau says:

    What philip says is correct…finviz is the best free stocks sceener.. i wish that it covers the Asia markets. Indonesia is a hot market right now. It has already overtaken China and growing fast,really fast.

  9. Tim Chen says:

    Nice tips on stock screen. I use google finance on a weekly basis to screen for stocks with strong fundamentals.

  10. Darren M says:

    Nice posts looking to make a screener for my Tradestation software chatrs. Where is your book I want it also?

    Thanks
    Darren

  11. barrydmoore says:

    Hi Darren

    thanks for the comment :)

    The book is available as part of the Liberated Stock Trader PRO Training, available here.
    http://www.liberatedstocktrader.com/stock-market-education-products/

    The training goes deep into stock screening for Fast Growth, Blue Chip, Cyclical and Dividend rich stocks with full video lessons on fundamentals.

    Let me know how you get on.

    Barry

  12. tiffany jewellery sale says:

    It’s really a cool and helpful piece of information. I am happy that you simply shared this useful info with us. Please keep us informed like this. Thanks for sharing.

  13. arunav chakravarty says:

    Thanks Barry for sharing, it is very helpful.. also Philip thank you for sharing finbiz.com..

    Barry do you have a video where you go over the screen parameters you discussed here? i am new to investing stocks & seems like screening is a very crutial part of selecting a profitable stock. so any other video/class on screening if you have, can you please share? thanks :)
    AC

  14. badmin says:

    HI Arunav, in the Liberated Stock Trader PRO training I have two chapters (including video) discussing how to analyze stocks and perforn stock screening to find great stocks. It covers fast growth stocks, cyclical / defensive stocks, undervalued stocks and bluechips.

  15. arunav chakravarty says:

    Thanks Barry..
    I am planning on buying the pro version.. however since i am new to the stock market, i want to first complete the free classes, have some basic understanding of the stock market & then start with the pro classes.

    Another question on back to the screener- do use same set of parameters to screen short term stocks (like few weeks) & long term stocks which you wish to hold for atleast a year? If not what different parameters you use? Thanks in advance :)

    AC

  16. badmin says:

    Hi Arunav

    my suggestion would be go for the PRO training now, because it includes the basic training on the free course and will fast track you into the knowledge you need. To answer your question you should let the stock price tell you when to exit a stock and when to hold it. The most profitable period to hold a stock is 45 days according to my testing, however a stock might surge for a week then pull back. You need to set your price target in advance and stick to the plan. That might be 2 weeks, that might be 3 months. The pro training teaches a master exit strategy called the escalator method.

  17. Deron Wagner says:

    Hi Barry,

    Thanks for the article. Good reviews.

    For stock screeners looking for preset scans of chart patterns such as breakouts and pullbacks, my company just launched a new online stock screener that fits the bill.

    It costs $11.95 per month, but there is a $4.95 trial period of 30 days. It is located at https://www.morpheustrading.com/services/stock-screener

    Hope that your readers may find this useful and helpful.

    Deron

  18. Deron Wagner says:

    Sorry, I meant to say “For swing traders” not “For stock screeners”

    :-)

  19. Lakendra Mcgonigle says:

    It’s nearly impossible to find educated people in this particular topic, however, you sound like
    you know what you’re talking about! Thanks

  20. Lenny Grover says:

    You should try our service at Screener.co (https://screener.co). It is the most powerful stock screener that is accessible to individual investors both from a cost and usability perspective. I would definitely appreciate your feedback on our service.

Leave a Reply

Independent, Unbiased Education

This is an independent, unbiased resource for learning to trade the stock market. Liberated Stock Trader receives no payments from any company whose stocks are discussed and promotes no particular stock. If the author holds a stock it will be disclosed in the article.

Secured By Norton Verisign

Privacy Policy

We will never share your details with any third party.
Read Our Privacy & Cookie Policy
Read Our Terms & Conditions
Read our Returns Policy
This site is provided to you for informational purposes only and should not be construed as an offer to buy or sell a particular security or a solicitation of offers to buy or sell a particular security.
Read our Site Disclaimer