- 1Stock screeners filter the market by quantitative criteria
- 2Start with broad filters (market cap, sector) then narrow with fundamentals
- 3Pre-built screens (value, growth, income) are great starting points
- 4Screening finds candidates — always do deeper analysis before buying
- 5Factor-based screening is more effective than single-metric filters
#What Is a Stock Screener?
A stock screener is a tool that filters the universe of publicly traded stocks based on specific criteria you define. Instead of researching 3,000+ stocks one by one, you set parameters and let the screener surface only the stocks that match.
Think of it as a search engine for stocks.
#Types of Screening Criteria
Fundamental Criteria
Based on financial statements and company characteristics:
| Criteria | What It Filters |
|---|---|
| P/E Ratio | Valuation relative to earnings |
| Revenue Growth | Top-line expansion rate |
| Profit Margin | Profitability |
| ROE | Return on shareholder equity |
| Debt/Equity | Financial leverage |
| Dividend Yield | Cash income |
| Market Cap | Company size |
| Sector/Industry | Business classification |
Technical Criteria
Based on price and volume patterns:
| Criteria | What It Filters |
|---|---|
| 52-week high/low | Price relative to range |
| Moving averages | Trend direction |
| RSI | Overbought/oversold |
| Volume | Trading activity |
| Beta | Volatility vs. market |
Factor Criteria
Based on multi-factor composite scores (like ours):
| Criteria | What It Captures |
|---|---|
| Value score | Cheapness across multiple metrics |
| Momentum score | Price trend strength |
| Profitability score | Quality of earnings |
| Stability score | Risk level |
| Composite score | Overall factor ranking |
#Sample Screening Strategies
The Value Screen
Find cheap stocks with decent fundamentals: - P/E < 15 - Debt/Equity < 1.0 - ROE > 10% - Market Cap > $1B - Revenue Growth > 0%
The Growth Screen
Find fast-growing companies: - Revenue Growth > 20% - Gross Margin > 40% - Market Cap > $500M - Positive earnings (or approaching profitability)
The Dividend Income Screen
Find reliable income stocks: - Dividend Yield > 2.5% - Payout Ratio < 60% - Dividend Growth (5-year) > 5% - Market Cap > $5B
The Quality Compounder Screen
Find high-quality businesses: - ROE > 15% - Gross Margin > 50% - Revenue Growth > 8% - Debt/Equity < 0.5
#From Screen to Investment Decision
Screening is step one, not the final step. After a screen produces candidates:
Step 1: Review Each Company
Read the business description. Understand what they do and how they make money.
Step 2: Check Factor Scores
Our composite score combines six factors into one signal. A stock that passes your screen AND ranks in the top 30% by composite score is a strong candidate.
Step 3: Analyze Recent Trends
Are revenues accelerating or decelerating? Are margins expanding or contracting? Is the stock in an uptrend or downtrend?
Step 4: Consider the Portfolio
Does this stock add diversification or increase concentration? How does it fit with your existing holdings?
Step 5: Determine Position Size
Based on conviction and portfolio rules, decide how much to allocate.
#Common Screening Mistakes
1. Too Many Filters
Adding 15 criteria often returns zero stocks. Start with 3–5 key filters.
2. Optimizing for the Past
Don't backtest screens until they look perfect historically — that's data mining, not analysis.
3. Ignoring Qualitative Factors
Screens can't capture management quality, competitive dynamics, or regulatory risks.
4. Not Updating Screens
Market conditions change. A screen that worked in 2024 may need different parameters in 2026.
5. Treating Screen Results as Buy Signals
A screen is a starting point for research, not a final answer.
#Our Factor-Based Screening Approach
Our rankings page is essentially a multi-factor stock screener. Every stock gets scored across six dimensions:
- 1Value — Are you getting a good price?
- 2Momentum — Is the trend favorable?
- 3Profitability — Is the business high-quality?
- 4Growth — Is the company expanding?
- 5Stability — Is the risk manageable?
- 6Short Interest — What are sophisticated investors doing?
Last updated: February 6, 2026