|Stock Rover - Winner Best for Value Investors Seeking Simply the Best Screening, Scoring & Ratings System with 10+ Years of Historical Data|
|TradingView – Best Global Screener for Stocks, ETF's, Forex & Cryptocurrency|
|MetaStock – Best for International Investors – Powerful Stock Screening, Real-Time News & Backtesting|
|TC2000 – Great Fundamental & Technical Analysis Scanning for U.S. & Canada Investors|
|Screener-co – Recommended for U.S. & International Value Investors Needing A Large Dataset|
Here are the best 5 Screeners from our Top 10. The clear winner is Stock Rover with the best financial database, analyst ratings & stock scoring engine for the U.S. & Canada. TradingView has excellent scanning across the global financial markets. MetaStock has powerful scanning + real-time news globally. TC2000 has an integrated approach to screening & technical analysis for U.S. investors.
Screening or scanning for stocks is one of the most important elements in your investing strategy. Whether you are a day trader or a long-term investor, finding the companies that match your idea of what makes a good investment is critical.
As a certified technical analyst and investor for over 20 years, I understand the key functionality and metrics that make a great stock screener. I hope you see value in the thousands of hours of testing and research that has been invested in this comparison. —
The 5 Best Stock Screeners are:
- Stock Rover — Best Stock Screener for U.S. Income & Value Investors. Fair Value, Margin of Safety, Dividend & Analyst Ratings
- TradingView — Best Technical Stock Screener for International Traders; Excellent Technical Stock Scranning
- MetaStock R/T Xenith — Best for International Investors, Powerful Stock Screening + Real-Time News
- TC2000 — Best Fundamental & Technical Scanning for Entire U.S. & Canadian Markets
- Screener-co — Good for Value Investors Wanting a Large Fundamental Database
The Outright Winner is Stock Rover with the most powerful screening, scoring, and rating systems for income & value investors. 3 other excellent screeners are TC2000, MetaStock, TradingView which add excellent technical analysis & charting functionality.
If you want to compare all screeners head to head, jump to the searchable Stock Screener Comparison Table
Top 10 Best Stock Screeners
Best for U.S.A. Canadian Value Investors Seeking An Insanely Good Fundamental & Financial Analysis Stock Research Software. Easy to Use Yet Extremely Powerful. This is Our Outright Winner
Stock Rover Pros & Cons
|★ Huge Selection of Fundamental & Financial Scanning Criteria||✘ No Social Community|
|★ Incredible Stock Scoring Systems Allow You To Find Perfect Matches For Your Portfolio|
|★ Unique 10 Year Historical Fundamentals Data|
|★ Warren Buffet & Ben Graham Screeners & Portfolios Fully Integrated|
|★ Easy to Use & Integrated With Your Broker for Portfolio Analysis||Try Stock Rover Free|
Stock Rover — Best Stock Screener Review Winner 2020
It is really impressive that Stock Rover has stormed into the review winners section of our Stock Market Software Review in its first try.
I now actively use Stock Rover every day to find the undiscovered gems that form the foundations of my long-term investments.
Stock Rover Pricing
You can have Stock Rover for free, however, the real power of Stock Rover is unleashed with the Premium Plus service. Moreover, their top tier of service is not even expensive when compared to the competition.
How Much Does Stock Rover Cost?
- Free $0 -- Scanning for 10,000 stocks, 43,000 mutual funds & ETF’s, broker integration, portfolio analysis & market news
- Essentials $7.99 US/mo -- 5 years of historical data, 10 fair value, and margin of safety ratings per month + earnings calendar
- Premium $17.99 US/mo -- 350 fundamental metrics, 10 years of historical data, stock & ETF ranked screening. 10 stock ratings per month, 20 fair value & margin of safety ratings per month.
- Premium Plus (Recommended) -- $27.99 US/mo -- 10 years of historical screening, an unlimited margin of safety and fair value scoring, unlimited stock warnings and stock ratings + analyst ratings scoring.
I strongly recommend going for the Stock Rover Premium Plus at $27.99 per month. Why? Because having used the service extensively, I cannot live without the unlimited stock ratings, analyst ratings scoring and the unlimited fair value and margin of safety scoring.
The lower-priced service tier limits the number of ratings, so go for the Premium Plus, it is well worth it at only $27.99.
Stock Rover Platform
Stock Rover runs on PC, Mac, Tablets, and Smartphones and requires zero installation, it simply works. The market data, scoring, ranking, and analysis are for the USA & Canadian markets only.
Stock Rover has the best implementation of stock screening on a cloud-based architecture on the market.
With Stock Rover, you get broker integration with practically every major broker, including our review winning brokers Firstrade and Interactive Brokers. Stock Rover will take care of profit & loss reporting on your portfolio and provide recommendations for portfolio rebalancing. Including income (dividend) reporting and scoring, it is a unique package.
Stock Rover is not for day traders, it is for longer-term investors that want to maximize their portfolio income and take advantage of compounding and margin of safety to manage a safe and secure portfolio.
Fundamental Scanning & Screening
Another perfect score for Stock Rover as they hit the mark on company stock scanning and filtering, and fundamental watchlists also.
The list of fundamentals you can scan & filter on is truly huge. Any idea you have based on fundamentals will be covered with over 600 data points and scoring systems.
Watchlists have fundamentals broken into Analyst Estimates, Valuation, Dividends, Margin, Profitability, Overall Score and Stock Rover Ratings. You can even set the watchlist and filters to refresh every single minute if you wish.
The Excellent Stock Rover Ratings Engine
The team over at Stock Rover has implemented some great functionality, one I particularly like is the roll-up view for all the scores and ratings. Here I have imported the Warren Buffett portfolio which includes his top 25 holdings. I have also selected the “Stock Rover Ratings” tab. This “Stock Rover Ratings” tab rolls up all analysis into a simple to view ranking system, saving a huge amount of time and effort whilst providing a wealth of insight.
Powerful Pre-Built Screeners — Integrated into Stock Rover
Stock Rover already has over 150 pre-built screeners that you can import and use. You do need to have the Premium Plus service to take advantage of this, I have reviewed many of them and they are very thoughtfully built. One of my favorites is the Buffettology screener.
The Stock Rover Buffettology Screener — Screenshot
Stock Rover Screeners — Buffett’s Holy Grail
Here is another screener that I really like. If you select any screener, in this case, I selected the “Strong Buys Screener” the Fair Value Screener and simply select the “Fair Value” tab, you are rewarded with arguably the killer features of Stock Rover. The Fair Value and Margin of Safety analysis and rankings. These analysis factors are a nightmare to manually calculate yourself and it could be said, warrant the investment in Stock Rover all by themselves.
[Related Article: 4 Easy Steps To Build Your Own Warren Buffett Screener With Stock Rover]
Fair Value and Margin of Safety Rankings
Detailed Dividend & Income Analysis
Another reason why I like Stock Rover so much is the detailed dividend and income analysis provided.
As all smart investors know, to have a chance at excellent market-beating returns you need to accrue your dividends.
Stock Rover provides intelligent analysis to enable you to do just that.
Stock Charting & Technical Analysis
Looking at stock charts with Stock Rover is different from all the other software vendors on the market. Whereas MetaStock & TradingView focus on hundreds of technical analysis (price/volume) indicators, Stock Rover focuses on charting the fundamental financial strength indicators.
With over 154 different financial indicators, and only 9 technical analysis indicators, Stock Rover is not the best service for technical analysis or frequent trading, but it is by far the most complete package for fundamental income and value investors. So, although this section is for technical analysis, they are so good with charting fundamentals I have rated them a score of 70%.
Caveat -- there are no possibilities to draw trend-lines or annotate charts in Stock Rover.
Stock Rover Research Report — New for 2020
An excellent new addition to the Stock Rover platform is the Research report, a brand new service that enables you to generate a professional readable PDF report on the current and historical performance of any particular stock. To read more about this functionality, see our detailed Stock Rover Review.
Stock Rover Usability
Within 15 minutes I was using Stock Rover no installation required and no configuring data feeds, it was literally just there. Stock Rover is up and running with a single click of the login button.
Even better is the fact it there are so many curated screeners and portfolios to import and use you are instantly being productive. It is quite a feat that it is so easy to use considering Stock Rover has so many powerful scoring and analysis systems.
Stock Rover Review Summary
Stock Rover wins our Stock Market Software review by providing the best software for value and income investors. A 10-year financials & fundamentals historical library plus incredible scanners including all of Warren Buffet & Ben Graham’s favorite criteria. Fair Value, Margin of Safety and so much more.
If you are a long-term investor, this is the software for you.
Best Global Stock Screener for Investors & Day Traders who want the excellent Fundamental & Technical Stock Screener Capabilities at a great price point
TradingView Pros & Cons
|★ Good Selection of Fundamental & Financial Scanning Criteria||✘ No Deep Historical Data|
|★ Best Screener for Global Stock Markets, Every Market Covered|
|★ Ability to Screen Forex, Cryptocurrency & Commodities|
|★ Great Usability & Setup||Try TradingView Free|
TradingView has a very slick system and they have put a huge amount of thought into how fundamentals integrate into the analytics system.
Key Benefits of TradingView
- Watchlists have fundamentals broken into Performance, Valuation, Dividends, Margin, Income Statement, and Balance Sheet. You can set the watchlist and filters to refresh every minute if you wish.
- Economic Indicators & Filters -- What makes TradingView stand out is the huge selection of economic indicators you can map and compare on a chart. For example, you can compare the Civilian Unemployment Rate versus the growth in Company Profits for the U.S.A. This is incredibly powerful.
- Price -- FREE & Premium -- You can use TradingView right now, no login, no installation, and no cost. However, you will find that the Pro Version of TradingView unlocks even more power and abilities. Again Starting at $9.95 this is very inexpensive.
- Global Data Coverage -We recommend TradingView for any international traders as the market coverage is huge and if you want a very active trading community this is the place.
TradingView Fundamental Stock Screening & Analysis
The TradingView Stock Screener comes complete with 150 fundamental and technical screening criteria, all the usual criteria are there such as EPS, Quick Ratio, Pre-Tax Margin and PE Ratio (forwards and trailing twelve months). But it also goes deeps with more esoteric criteria such as the number of employees, Goodwill and Enterprise Value.
Another great thing about the screener implementation is that is is very customizable, you can configure the column and filters exactly how you like it. As you can see above I have changed the overview screen to include the number of employees, P/E, and EPS TTM.
Forex Pairs Screening Implementation
What makes TradingView unique here is the availability of screeners for chart patterns and setups for foreign exchange pairs. This makes it very valuable for day traders searching for volatility and using leverage.
In the Forex screener, we can compare performance and volatility together will help you to narrow down the list for currency traders.
Cryptocurrency Screener Implementation
The ability of TradingView to also provide crypto screening is quite unique. They have also included a rating filter. In the screenshot below you can see a technical rating for the crypto pair.
The rating system enables you to select the crypto’s rated as “strong sell” to use as candidates for a short trade, and strong buys as candidates for long trades, this will save you a lot of time.
Extremely easy to use, low cost and packed with Stock Screener Power, including economic data. The right combination for active international day traders who value a social community.
Introduction To TradingView Video
Watch The Video Overview
Best for International Investors & Day Traders who want the best Fundamental & Technical Stock Screener Capabilities with the Best Real-time News Service & Economics Data
MetaStock Xenith Pros & Cons
MetaStock is the leader in backtesting, forecasting and technical chart analysis. If you purchase MetaStock R/T (real-time) you essentially get the Xenith add-on. This adds Real-time news (from Reuters) and Bloomberg level fundamental and technical screening
They have an incredible database of global fundamental data, not just on companies but economies and industries, the wealth of data is first class.
Using Xenith you can see a really in-depth analysis of company fundamentals from debt structure to top 10 investors, including level II, combine that with excellent watch lists featuring fundamentals and powerful scanning of the markets and MetaStock R/T gets a perfect 10.
MetaStock Video -- Showing the Simplicity of Screening & Analysis
Watch The Video Overview
MetaStock Stock Screener Highlights
- Global Data Coverage -- Real-time and accurate
- Screening on Exchange Traded Funds, Mutual Funds, Options and even Foreign Exchange (Forex)
- Extensive Analyst Ratings and Changes Coverage
- 79 Core Fundamental Screening Criteria, but in reality, there are many more.
- 100+ off the shelf Technical Screens, but another 169 more are available using the explorations
But It’s Not Free!
The fact is if you want real power it will cost you. MetaStock is a Review Winner for our Best Stock Market Software Review, and that is for many good reasons.
- You get real-time News Included
- You get world-class charts and flexibility.
- You get extremely powerful systems backtesting
- You also get forecasting into the future -- which is unique.
- Prices for MetaStock R/T + Xenith average $250 per month
MetaStock is one of our valued partners and we have a 3 months for the price of 1 deal, which should save you $500.
Best for U.S. & Canadian Investors, who want Entire Market Scanning of Fundamental, Technical Criteria + Charting at a great price point
|★ Excellent Selection of Fundamental & Technical Screening Criteria||✘ No News Service|
|★ Great Workflow & Fundamentals Integration||✘ No Social Trading|
|★ Can Create Custom Indicators|
|★ Ability to Trade from Charts with TC2000 Brokerage Account||Visit TC2000|
Make no mistake about it, if you want fundamentals screened in real-time layered with technical screens all integrated into live watch lists connected to your charts Telechart is a power player.
I selected TC2000 as my tool of choice back in the year 2000 because it offered back then, simply the best implementation of fundamental scanning, filtering and sorting available on the market. 17 years later, they are still a leader in this section.
They offer a huge selection of fundamentals to choose from, but what makes it unique is the fact you can, with a few clicks, create your own indicators based on the fundamentals. You can then overlay the indicators directly on the charts, which opens up a whole new world and technical and fundamental analysis. 10 out of 10 for TC2000.
TC2000 Stock Screener & Software Highlights
- Free Version of TC2000 (previously freestockcharts.com) that you can use to begin testing its capability
- Low-Cost Premium Version -- The Premium TC2000 is incredibly powerful, with an end of day data entry-level price of $9.95 per month which is incredible
- The ease of use masked the powerful scanning, screening, and filtering
- Integration -- It is the best integrated of all Stock Market Software as you can effortlessly glide from powerfull Screening on a large array of Fundamental & Technical Screens, to managing your Watchlist and directly trading with the TC2000 brokerage.
- ETF Screening -- Powerful Exchange Traded Fund Screening is included
- Options Screening -- The options Screening and on-screen options execution is second to none and leading the industry
The only downside here is that it is only available for those who trade the U.S. and Canadian Stock Markets.
Day Trader Stock Scanner / Screener
Worden is also very well suited to Day Traders because its scanning is real-time and you can trade directly from the charts if you use TC2000 Brokerage.
If you are interested in TC2000, click this button to get a huge discount on the Liberated Stock Trader PRO Training Course and our Stock Market Crash Detector Book (Combined Value $129)
Try TC2000 + Get Bonuses
Recommended for U.S. & International Value Investors who want a large selection of Fundamental Criteria
The big surprise contender this year is the brainchild of Lenny Grover the founder of Screener.co. Using industry-leading Thomson Reuters Data he has crafted the most detailed Fundamental Scanner on the market.
There is a massive amount of fundamental data, literally everything you ever dreamed of, everything in the financial reports is all there and also includes detailed breakdowns of each companies details.
The key features are:
- A large global universe of securities -- this is why we recommend for the international investors, you can even filter screen for which exchange, index, sector and even which country or state the company is headquartered in.
- Robust calculation engine that allows non-technical users to create custom screening formulas leveraging over 1,250 built-in metrics
- Fast HTML5 web-based platform that allows for rapid iteration when developing screens (unlike Bloomberg’s cumbersome EQS)
- Flexible column sets allow any metric (including custom metrics) to be displayed in the results table or watchlist view
- Detailed company profiles that can be viewed by clicking on a result and selecting View Company Profile
- Very low price -- it’s not free, but if you are serious about your Value investing this is well worth the entry level price.
Screener.Co is extremely strong fundamentals and here are the elements I find to be unique or especially strong:
- Insider Trading Screens -- you can screen for Insider Net Share Bought, Insider Trades, Insider Ownership Percent, Shares Purchased, Buy & Sell Transactions and insider shares sold.
- Historical Fundamental -- most Stock screeners will only show you the picture now. Screener.co stored the fundamental data historically also, which is a huge bonus if, for example, you want to track management effectiveness (return on assets) over time.
- Extensive Dividend Coverage, Institutional Ownership, and Financial Statements.
- Screener.Co is not designed for people looking for Technical Analysis screening. This means that if you want to be able to scan if the price is above the 200-day simple moving average (SMA) and the Relative Strength Indicator is above its own 20-day exponential moving average (EMA) then you cannot do it with this package. So active Traders, need not apply.
- Additionally, Screener.Co cannot be classed as easy to use. You will need some significant time to sift through the huge database and learn the names of the specific criteria you are looking for.
[Related Article: Best Financial & News Services For Traders]
6. NASDAQ / ZACKS Stock Screener
The NASDAQ Stock Screener has been around for a long time, actually, now it is powered by Zacks. In fact, it is the exact same screener as features on the ZACKS website. It is a good Fundamental Screener that is definitely easy to use and worth it for a quick scan or to supplement your existing Charting Software with Analyst Ratings.
NASDAQ / Zacks Stock Screener Positives
- Guru Stock screener -- This is a really nice idea, they have attempted to formulate the Criteria from famous investors into a pre-configured stock screen you can use off the shelf. Guru styles implemented include Ben Graham, Peter Lynch & Martin Zweig. Whether they turn you into the next Warren Buffet is another question.
- Incredibly detailed EPS (Earnings per Share) Screening, including Earnings EPS, Last EPS Surprise (%), Previous EPS Surprise (%), Avg EPS Surprise (Last 4 Qtrs), Actual EPS used in Surprise ($/sh), Last Qtr EPS, Last Reported Qtr, Last Yr’s EPS (F0) Before NRI & Last Reported Fiscal Yr
- Extensive Analyst Rating Filters, including upgrades, downgrades and rating changes
NASDAQ / Zacks Stock Screener Negatives
- Limited Free Access -- quite a number of the selection criteria require a premium package to be purchased from ZACKS
- No Real Technical Screening Capability -- only fundamentals
[Related Article: Best Brokers For Zero Commissions Trading]
7. Yahoo Stock Screener
Yahoo, as long as they remain in business and do not fire the employees maintaining the Yahoo Finance portal, do have an OK Stock Screener.
Yahoo Stock Screener Positives
- 52 Different Stock Screening Fundamental Filters
- Easy to use interface
- Watchlist integration
- Good basic off the shelf Screens
Yahoo Stock Screener Negatives
No Technical Screening Criteria to mention.
8. CNBC Stock Screener
If you think this global broadcasting corporation would not settle for anything other than excellent, then you would be seriously wrong.
CNBC Stock Screener Positives (not many)
- 98 Fundamental Indicators, including the number of employees in a company.
CNBC Stock Screener Negatives
- Poor Interface -- this is the worst in the list in terms of implementation -- it seems like they have given up
- No Watchlists -- there is no way I can find to use a watchlist and maintain it
- No real-time scanning -- this is a click and copy to excel situation
- Bad usability -- follow the link and see if you can even start a screening session
- Limited Stock Universe -- Focussing only on North America
- No real Technical Screens
9. FINVIZ Stock Screener
FINVIZ Stock Screener Positives
- The opening screen looks impressive allowing you to drill straight into top gainers and losers and most volatile
- The Visual Approach to Screening is very nice
- FINVIZ does have 29 Fundamental Criteria and 17 Technical Criteria to select
FINVIZ Stock Screener Negatives
- Inability to select specific criteria -- for example, if you want to select 2 exchanges, the NASDAQ and the NYSE, you cannot, you can only select one. This goes for most of the selections and is a large negative.
10. Reuters Stock Screener
Reuters are definitely leaving the power screening to MetaStock and Screener.Co, because this online version of their data is not really worth the effort. However, there are some benefits.
Reuters Stock Screener Positives
Nice Pre-configured Screens
- GROWTH AT A REASONABLE PRICE (GAARP)
- LARGE CAP GROWTH
- SMALL CAP VALUE
- SMALL CAP GROWTH
- NEAR PRICE HIGHS
- MID-CAP MOMENTUM
Data does include Europe, Americas, Asia Pacific & Africa & Middle East
Reuters Stock Screener Negatives
- A seriously limited selection of criteria.
- EPS Growth Rate
- Price/Earnings/Growth (PEG)
- Sector & Industry
11. MSN Money Stock Screener
Microsoft has done a reasonable job with this Stock Screener
MSN Money Stock Screener Positives
- 45 Fundamental Screening Selections -- will cover a beginner’s needs
- Nice Clean Simple Interface
- Easy to Use
- Includes MorningStar Ratings
- Global Data Coverage
MSN Money Stock Screener Negatives
- No Easy Way to add multiple selected companies to a watchlist.
- No Technical Screens
12. MarketWatch Stock Screener
For a company whose name infers watching the market, this poor stock screener does not do a good job of it.
MarketWatch Stock Screener Positives
- Includes Zacks Ratings
MarketWatch Stock Screener Negatives
- With a grand total of 4 criteria, this screener is a waste of time
- Extremely poor -- hardly anything worth selecting
Stock Screener Review Summary
Out of all the screeners we reviewed, the clear winners are Stock Rover with the best ratings and scoring engine plus 10 years of historical financials and analyst ratings. TradingView has excellent scanning across the global stock markets. MetaStock has extremely powerful scanning and real-time news.
TC2000 has the most integrated approach to screening & technical analysis but is only available for U.S. investors. Finally, Screener.co has a powerful historical database of fundamental data but will take time to master.
In-Depth Stock Screener Comparison Table
We evaluated 20 contenders, from well-known companies like FINVIZ, AOL Finance, MSN Money, CNN Money, MarketWatch, Reuters & NASDAQ, and some newer lesser-known companies.
We trimmed the list to only 12 worth mentioning. There are clearly 4 winners based on our evaluation. The winners were selected based on the number of filterable, customizable criteria available in the Stock Screener, but also including value for money, usability, and innovation.
|Market Coverage||Stock Rover||TradingView||MetaStock||TC2000||Screener.Co||ZACKS||CNBC||Yahoo||MSN||FINVIZ||MarketWatch||Reuters|
|Sector & Industry Screening||✔||✔||✔||✔||✔||✔||✔||✔||✔|
|Mutual Fund Screener||✔||✔||✔|
|Fundamental Scanning & Screening||Stock Rover||TradingView||MetaStock||TC2000||Screener.Co||ZACKS||CNBC||Yahoo||MSN||FINVIZ||MarketWatch||Reuters|
|Real Time Scanning & Filtering||✔||✔||✔||✔||✔|
|Watch Lists with Fundamentals||✔||✔||✔||✔||✔||✔||✔||✔|
|Fundamental Screening Filters|
|Price/Earnings Ratio P/E||✔||✔||✔||✔||✔||✔||✔||✔||✔||✔||✔||✔|
|EPS Growth Rate||✔||✔||✔||✔||✔||✔||✔||✔||✔||✔|
|Current Ratio / Quick Ratio||✔||✔||✔||✔||✔||✔||✔||✔||✔|
|Profit / Income / Revenue||✔||✔||✔||✔||✔||✔||✔||✔||✔|
|Price to Book / Price to Cashflow||✔||✔||✔||✔||✔||✔|
|Assets / Debt to Equity||✔||✔||✔||✔||✔||✔||✔||✔||✔||✔|
|Return on Equity / investment||✔||✔||✔||✔||✔||✔|
|Special Value Investing Scoring|
|Margin of Safety||✔|
|Greenblatt Earning Yield||✔|
|Price to Graham Number||✔|
|Price to Lynch Fair Value||✔|
|Yachtman Forward RoR||✔|
|Total Fundamental Criteria||500+||52||79||85||500||128||98||52||45||29||2||3|
|Unique Screening Criteria||Stock Rover||TradingView||MetaStock||TC2000||Screener.Co||ZACKS||CNBC||Yahoo||MSN||FINVIZ||MarketWatch||Reuters|
|Extended Economics Fundamentals||✔||✔||✔||✔||✔|
|Number of Employees||✔||✔||✔||✔||✔||✔|
|Enterprise Value EBITDA||✔||✔||✔||✔||✔||✔|
|Revenue Per Employee||✔||✔||✔||✔|
|Guru Stock Screener||✔|
|Analyst Ratings & Changes||✔||✔||✔||✔||✔|
|Morningstar Profitability & Growth||✔||✔|
|Technical Screens||Stock Rover||TradingView||MetaStock||TC2000||Screener.Co||ZACKS||CNBC||Yahoo||MSN||FINVIZ||MarketWatch||Reuters|
|New Highs - Lows & % Change||✔||✔||✔||✔||✔||✔||✔||✔||✔||✔|
|Commodity Channel Index CCI||✔||✔||✔|
|Technical Screens Score||154||80||100||87||56||2||1||3||5||17||2||0|
6 Steps to Follow Before You Buy Stock
Here is a simple process I use to find growth stocks.
Step 1: Understanding
Step 2: Selection
Use your selection criteria to narrow down the 7000+ stocks on the US Stock Markets or over 50,000 stock worldwide. (Stock Screening -- covered in detail in the PRO Training)
Step 3: Fundamentals
From your Screened List, you can then review in detail further detailed fundamentals.
Step 4: Industry Knowledge (optional)
Learn a little about the industry of the stocks you are interested in.
Step 5: Technical Analysis
Analyze the Price Patterns, to assess when to BUY “Charting”
Step 6: Buying Strategy
Work out your Entry and Exit Strategy
Now we know what the process is before we buy, we will now focus on the screener to use and the selection criteria so find good companies.
5 Stock Screener Criteria For Growth Stocks
So, this section is explicitly about filtering out the junk to find the Gems. This screen is highly focused on fast-growing companies.
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 that the share price of a stock can be so small, and it is not usually a good reason, stocks decline in price because the company’s behind the stock are usually run poorly, or have little if any cash flow.
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 growth stocks. This means over the last year the earnings have increased 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.
After you run this screen you will have a list of potential stocks. This list changes over time so do not expect it to be the same as the list above.
What you are left with is companies that are a good size, relatively stable, which strong revenue and profitability.
You may not have heard of these companies they may still be relatively small, but they may hold the key to strong long-term price appreciation.
- Related Article: What is ESG Investing?
Legend of the Stock Screener Comparison Factors
- Free -- is the service offered for free
- Premium -- is the service a paid for service
- U.S. Stocks -- Complete U.S. Stocks Coverage
- International Stocks -- Are markets in Europe & Asia also covered -- e.g. suitable for investors outside the U.S.
Stock Screening -- What Trading Vehicle are Covered
- Sector & Industry Screening -- Can you drill down and screen on specific Sectors & industries
- ETF Screener -- Does the Screener scan Exchange Traded Funds
- Depository Receipts -- Are ADR’s included as a criterion to scan
- Mutual Fund Screener -- Are mutual funds included
- Options Screener -- Does the Screener enable scanning for Stock Options & Setups
- Forex Screener -- Does the vendor provide Screening for Foreign Exchange
- Crypto Screener -- Can you screen Crypto Currencies such as Bitcoin
Fundamental Scanning & Screening
- Real-Time Scanning & Filtering -- Can you can in real-time and have the software auto-update -- good for day traders
- Watch Lists with Fundamentals -- can you build watchlists with Fundamental Column for easy comparison
- Pre-configured Scans -- does the company provide off the shelf scans to get you up and running quickly
- Customizable Scans -- can you fully customize and even develop your own scans
Fundamental Screening Filters -- Important Fundamentals all Stock Screeners Should Have
- Price/Earnings Ratio P/E
- EPS Growth Rate
- Price/Earnings/Growth (PEG)
- Current Ratio / Quick Ratio
- Dividend Yield
- Dividend Expected
- Profit / Income / Revenue
- Price to Book / Price to Cashflow
- Assets / Debt to Equity
- Return on Equity / investment
- Market Capitalization
- Profit Margin
Total Fundamental Criteria -- A Total of all the Fundamental Criteria in the Stock Screener (not just what is listed above)
Unique Screening Criteria -- What are the unique Screening Criteria this company offers
- Extended Economics Fundamentals
- Number of Employees
- Enterprise Value EBITDA
- Revenue Per Employee
- Guru Stock Screener
- Zacks Rating
- Analyst Ratings & Changes
- Morningstar Profitability & Growth
Technical Screens -- Screening on Charts, Indicators & Patterns
- New Highs-Lows & % Change
- Chaikin Money Flow
- Commodity Channel Index CCI
- Moving Averages
- Money Flow
- Ichimoku Cloud
- RSI Screen
Total Criteria -- A count of all technical criteria available in the Stock Screener App
Total Score -- The Sum of Total Fundamental Criteria + Total Technical Screener Score
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