Stock Screener
Quick Definition
A tool that filters stocks based on user-defined criteria such as market cap, P/E ratio, dividend yield, and other financial metrics to identify investment candidates.
Key Takeaways
- Stock screeners filter stocks by user-defined fundamental and technical criteria.
- They are a starting point for research, not a final investment decision.
- Popular screeners include Finviz, Yahoo Finance, and brokerage-specific tools.
What Is Stock Screener?
A stock screener is an analytical tool that allows investors to filter the universe of publicly traded stocks based on specific criteria and parameters. Common screening criteria include market capitalization, price-to-earnings ratio, dividend yield, revenue growth, profit margins, debt-to-equity ratio, relative strength, sector, and many other fundamental and technical indicators. Stock screeners are available from financial data providers (Finviz, Yahoo Finance, Morningstar), brokerage platforms (Fidelity, Schwab, TD Ameritrade), and specialized services (Stock Rover, Zacks). Screening is a top-down approach that narrows thousands of stocks to a manageable list of candidates for deeper analysis. Famous investors have used screening methodologies extensively — Benjamin Graham's value criteria, William O'Neil's CAN SLIM methodology, and Joel Greenblatt's Magic Formula are all screener-compatible strategies. While screeners are powerful for idea generation, they should be a starting point for research rather than a final investment decision.
Stock Screener Example
- 1A value investor screened for stocks with P/E below 15, dividend yield above 3%, and debt-to-equity below 0.5.
- 2Using a momentum screener, a trader identified stocks hitting 52-week highs with above-average volume.
Related Terms
Price-to-Earnings Ratio (P/E)
A valuation metric comparing a company's stock price to its earnings per share, indicating how much investors pay per dollar of earnings.
Market Capitalization
The total market value of a company's outstanding shares, calculated by multiplying the stock price by the number of shares outstanding.
Dividend Yield
The annual dividend payment divided by stock price, expressed as a percentage, showing the income return on investment.
Relative Strength
A measure comparing a stock's price performance to a benchmark index or peer group over a specified period, identifying outperformers and underperformers.
Analyst Rating
A professional securities analyst's recommendation on whether to buy, hold, or sell a particular stock, typically issued by investment banks and research firms.
Stock
A security representing ownership in a corporation, entitling the holder to a share of profits and voting rights.
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