Screener Strategy 2 – Find over priced stocks
If you want to short an overpriced stock then the following configurations might uncover some possibilities.
- P/E ratio > 50 – Highly valued companies with high growth potential for the future will have a high P/E. However, if that growth does not materialize the stocks will tend to come crashing down. If the company does not have a P/E ratio, this means it might be making a loss. Making a loss is also a good criteria for a stock to short.
- Earnings Growth 1 year <= 0% – shrinking earnings are something to screen for to enable you to find weakening stocks.
- Revenue Growth 1 Years <=0% – No growth or negative revenue growth
- Revenue $ – less dollar revenues that in previous years or quarters
- High Debt – look for debt to equity ratios of as high as possible.
There are hundreds of in-built strategies, to suit your investment style available within our recommended screener Stock Rover.