Stock Screener

Posted on by user

Stock Screeners: What They Are and How to Use Them

Key takeaways
* A stock screener is a tool that filters thousands of securities using user-defined criteria to help identify investment opportunities.
* Combining fundamental and technical filters improves precision — e.g., P/E or dividend yield plus indicators like moving averages or RSI.
* Use Boolean logic, volume, market-cap ranges, analyst ratings, and (when available) ESG filters to tailor searches to your strategy.
* Free screeners meet basic needs; premium versions add advanced filters, real-time data, and automation via APIs.

What is a stock screener?

A stock screener is software (web, desktop, or mobile) that lets investors narrow the universe of stocks by applying filters such as financial ratios, price/volume parameters, analyst ratings, and technical indicators. Screeners speed up research by returning a focused list of candidates that meet your rules.

How stock screeners work

  1. Choose filters: fundamental (EPS, P/E, dividend yield, market cap, cash flow), technical (moving averages, momentum, volatility), or qualitative (sector, exchange, analyst rating, ESG).
  2. Combine criteria: add multiple rules to reduce noise and find matches aligned with your objectives.
  3. Review results: examine charts, financial statements, news, or add alerts for price or indicator thresholds.
  4. Iterate and save: refine filters over time and save screenings for reuse or automation.

Common technical indicators available in screeners

  • Moving averages (SMA, EMA): smooth price data to identify trend direction and crossovers.
  • Relative Strength Index (RSI): momentum oscillator used to spot overbought/oversold conditions.
  • MACD (Moving Average Convergence Divergence): trend-following momentum indicator for shifts and potential reversals.
  • Bollinger Bands: moving average plus standard-deviation bands to gauge volatility and potential breakouts.

Practical strategies for effective screening

  • Start with your investment style: decide whether you’re screening for short-term trades (technical focus) or long-term investments (fundamentals).
  • Use Boolean logic (AND, OR, NOT) to combine filters precisely and avoid overly broad results.
  • Prioritize a few key ratios relevant to your goals (e.g., P/E for value investors, debt-to-equity for safety-focused investors).
  • Include average daily volume to ensure liquidity for smoother trade execution.
  • Use market-cap filters to target small-, mid-, or large-cap stocks depending on risk tolerance.
  • Add dividend yield if income is a priority—but verify payout sustainability, not just yield.
  • Consider analyst ratings for additional perspective, but weigh them against your own thesis.
  • Use ESG filters if sustainability or ethical considerations matter to your portfolio — definitions and coverage vary across platforms.

A simple example workflow

  1. Define objective: conservative, dividend-focused, mid-cap value.
  2. Set filters: market cap $2B–$10B, dividend yield > 3%, P/E < 20, debt/equity < 0.8, average volume > 200k.
  3. Run the screener and review each match’s fundamentals, recent news, and chart.
  4. Set alerts for price changes or indicator triggers (e.g., RSI crossing a threshold).
  5. Save and refine the filter over time as market conditions and your goals evolve.

Choosing a screener

Examples of commonly used tools:
* Finviz — user-friendly interface, visual tools like heat maps and performance charts.
* Yahoo Finance Screener — integrated with news and financial statements; broad fundamental filters.
* StockFetcher — flexible custom filters and scripting for advanced, pattern-based screening.

Mobile, API, and international coverage

  • Many screeners offer mobile apps for on-the-go screening and alerts.
  • APIs enable automated screening, real-time updates, and integration with trading systems or custom dashboards.
  • Most platforms support international exchanges, but coverage and data quality vary by provider.

Free vs. premium screeners

  • Free plans: suitable for casual investors; provide core filters and basic alerts.
  • Premium plans: offer more indicators, faster/real-time data, advanced backtesting, saved screens, and API access. Choose based on the need for speed, depth, and automation.

Conclusion

Stock screeners are valuable for quickly narrowing large universes of stocks to a manageable shortlist that fits your rules. Combine fundamental and technical filters, use precise Boolean logic, and tailor settings to liquidity, market cap, and strategy. Start simple, iterate, and consider premium features or APIs only if you need advanced filters, real-time automation, or extensive historical data.