Stock Screening Education
Why Should I Use a Stock Screener?
Q: Why Should You Screen for Stocks?
A: The short answer is because there are over 10,000 stocks out there and you need a way to find the good ones.
The longer answer is, other than buying the stocks that are talked about on TV or written about in the paper (not to mention tips from a friend), how else are you going to find stocks that meet certain fundamental or technical characteristics?
Even if you dont use a screener now, most people still do their own screening one way or another. They may hear that a stock has a certain Growth Rate, or P/E Ratio or Earnings Surprise, or whatever. They then find themselves listening for or reading about stocks that meet this criteria.
Well if you want to find stocks that meet certain criteria, then you can find them quickly and easily with a stock screener. You can start with the free screener on Zacks.com or explore a more advanced screener such as the Research Wizard.
Screening isnt hard but it does take some thought to set it up the first time around. In other words, think about what kind of characteristics youd want your stocks to have and then search for stocks which meet those specific criteria. If you want your stocks to have above average earnings growth, then screen for it. What about a positive earnings surprise or broker rating upgrades? Whatever characteristics youd want your stocks to have, you can find them quickly and easily with a stock screener.
Good Screens vs. Bad Screens
Just because you narrow down 10,000 stocks to only a handful, doesnt necessarily mean that youve picked the best stocks on the planet. Depending on what criteria youve used, you might have picked the worst ones.
The key to successful screening is to backtest your strategy. What is Backtesting? Read on to learn more. (last line = link to Backtesting article).
Free Screener on Zacks.com: Select from 96 different criteria to start finding stocks that meet your needs.
Profit Tracks: These nine unique screens were hand picked to offer investors great strategies to potentially outperform the market in the years ahead. Discover the strategies, performance history and current stocks.
Research Wizard: There is simply no better tool to create and backtest winning screens than with Research Wizard. Youll have more than 650 different items to choose from along with access to some of our best proven, profitable strategies.