Popular Stock Screener for beginners
A stock screener is a powerful tool that helps investors filter stocks based on specific criteria, such as financial performance, valuation metrics, or technical indicators. By using stock screeners, traders can identify potential investment opportunities that match their strategy. In this blog, we’ll explore some of the most popular stock screens used by investors and how they can help you make better trading decisions.
Are you a beginner in stock market than you should check out yourpaathshaala’s other articles on Stock Market Fundamental and Technical Analysis for better understanding of stock market.
What is a Stock Screener?
A stock screener is an online tool that allows investors to filter stocks based on predefined criteria. These criteria can include financial ratios (e.g., P/E ratio, ROE), technical indicators (e.g., RSI, moving averages), or qualitative factors (e.g., sector, market cap). Stock screeners save time by narrowing down thousands of stocks to a shortlist of potential candidates.
Popular Stock Screens
1. FII Buying
This screen identifies stocks that are being actively bought by Foreign Institutional Investors (FIIs). FII activity often indicates confidence in a stock’s future performance.
2. The Bull Cartel
Focused on companies with strong quarterly growth, this screen helps investors track the latest earnings results. Set up email alerts to stay updated on new additions.
3. Magic Formula
Based on Joel Greenblatt’s Magic Formula, this screen identifies companies with high return on capital (ROC) and low earnings yield. It’s a great tool for value investors.
4. Growth Stocks
This screen finds stocks with high growth potential at reasonable prices. The G Factor (a score out of 10) evaluates recent quarterly growth and earnings quality.
5. Low on 10-Year Average Earnings
Inspired by Benjamin Graham, this screen values stocks based on their 10-year average earnings, providing a long-term perspective on profitability.
6. Highest Dividend Yield Shares
This screen filters stocks with a history of consistent dividend payments, sorted by the highest yield. Ideal for income-focused investors.
7. Companies Creating New Highs
This screen identifies stocks trading near their 52-week highs, indicating strong momentum and potential for further growth.
8. Piotroski Scan
The Piotroski Score evaluates a company’s financial strength based on profitability, leverage, and operating efficiency. A score of 9 indicates a strong financial position.
9. High Growth, High ROE, Low PE
This screen finds undervalued companies with high growth potential, strong return on equity (ROE), and low price-to-earnings (P/E) ratios.
10. Capacity Expansion
This screen identifies companies undergoing major capacity expansion, such as doubling fixed assets over three years or increasing fixed assets by over 50% in one year.
11. Golden Crossover
A Golden Crossover occurs when the 50-day moving average (DMA) crosses above the 200-day DMA, signaling a potential bullish trend.
12. Benjamin Graham and Warren Buffett
This screen applies rigorous filters inspired by Benjamin Graham and Warren Buffett, such as minimum sales of ₹250 crore and strong financial metrics.
13. Loss to Profit Companies
This screen identifies companies that have recently turned profitable after reporting losses, indicating a potential turnaround.
14. Coffee Can Portfolio
Inspired by Saurabh Mukherjee’s book, this screen focuses on long-term compounders with strong fundamentals and growth potential.
15. Debt Reduction
This screen highlights companies that are reducing their debt while expanding operations, indicating improved financial health.
16. Bluest of the Blue Chips
This screen filters large-cap stocks (market cap > ₹3,000 crore) with solid profit growth, high return on equity (ROE), and attractive valuations.
17. Value Stocks
This screen identifies value stocks with high operating profit margin (OPM), high return on capital employed (ROCE), and low debt-to-equity (D/E) ratios.
18. Price Volume Action
This screen finds stocks with a significant increase in weekly trading volume (over 5x) and positive price movement, indicating strong investor interest.
19. Darvas Scan
The Darvas Scan identifies stocks within 10% of their 52-week high, with trading volume over 100,000 and a price above ₹10.
20. Multibagger Stocks
This screen focuses on stocks with the potential to deliver multibagger returns over the long term.
21. Quarterly Growers
This screen identifies companies with consistent quarterly growth (Q0 > Q1 > Q2 > Q3), indicating strong operational performance.
22. Breakout Stocks
This screen finds stocks within 10% of their 52-week high, with high trading volume and a price above ₹10, signaling a potential breakout.
23. Growth Without Dilution
This screen identifies companies with less than 10% dilution over 10 years, indicating efficient capital management.
24. RSI – Oversold Stocks
This screen filters stocks with a Relative Strength Index (RSI) below 30, indicating they may be oversold and due for a rebound.
How to Use Stock Screeners Effectively
- Define Your Strategy: Decide whether you’re looking for growth, value, or income stocks.
- Set Clear Criteria: Use specific filters like P/E ratio, ROE, or dividend yield.
- Backtest: Test your screen’s performance using historical data.
- Monitor Regularly: Update your screens to reflect changing market conditions.