How to Screen For Stocks on FinChat.io
Whether you're an experienced investor or a novice, screening for stocks is a great way to discover potential new investments.
However, a screener's outputs are only as good as its inputs, and that's what this article is about.
Here are 4 easy ways to narrow down a search when screening for stocks:
1.) Include/Exclude Countries
One of the easiest ways to narrow down your search is to select the markets you would feel comfortable investing in.
With FinChat, you can type the country in by name or browse and select the countries you would like to include.
Conversely, you can avoid searching certain markets by selecting specific countries and switching the "exclude toggle" (circled in red below).
2.) Sort by industry
Whether it's oil companies, airlines, or tech stocks, there's always one industry or another that doesn't fit within an investor's circle of competence.
With FinChat, it's easy to narrow down your search for specific industries.
In the "industries" search bar (shown with the red arrow), simply type or browse and select the industry you're looking to include/exclude.
3.) Select your criteria & set your parameters
This is the most important element of screening for stocks. There are hundreds of metrics to choose from and the range of combinations is virtually endless.
On FinChat, you can use the "Screener Criteria" search bar (red arrow below) to pick the metrics you're looking for. For each metric you choose, you'll then want to set the range by filling in the minimums and maximums (black arrow below).
For example, if you want to find companies that have grown revenue by more than 15% annually for the last 10 years and generate returns on invested capital (ROIC) of more than 20%, you'll set those as the minimums for each metric (see the example below).
4.) Sorting Screener Results
Once you've set the criteria you're looking for and run your screener, there can be lots of companies to look through... oftentimes too many.
That's why FinChat allows users to sort the results based on the criteria that matters most to them.
FinChat's default for all searches is to sort by largest to smallest, but by clicking on the preferred metric in the screener results (show with the red arrow), you can change how the companies are sorted.
Try these screeners:
Not sure where to start? Here are 5 simple FinChat screeners you can use to discover potential new investments.
1.) US High Quality:
{Country: Include only US}
10-year Revenue CAGR: 15%+
10-year EPS CAGR: 15%+
ROIC 10-year Avg: 25%+
2.) Global Small-Cap Growth:
Market cap: $20M-$1 billion
3 Year EPS CAGR: 15%+
3 Year EBIT CAGR: 15%+
3 Year Revenue CAGR: 15%+
Forward 1YR Revenue Growth: 7%+
3.) Global Large-Cap Growth:
Market cap: $5 billion - infinity
3 Year EPS CAGR: 15%+
3 Year EBIT CAGR: 15%+
3 Year Revenue CAGR: 15%+
Forward 1YR Revenue Growth: 7%+
4.) Global Small-Cap Value
Market Cap: $20M-$1B
EV/EBITDA: 0-5
Forward EV/EBITDA: 0-5
EV/EBIT: 0-6
Forward EV/EBIT: 0-6
Net Debt/EBITDA: -infinity to 2
5.) Global Large-Cap Value
Market Cap: $5B - infinity
EV/EBITDA: 0-5
Forward EV/EBITDA: 0-5
EV/EBIT: 0-6
Forward EV/EBIT: 0-6
Net Debt/EBITDA: -infinity to 2
6.) Share Cannibals
Market cap: $50M - infinity
5YR Shares Outstanding Growth: -20 to -5%
10YR Shares Outstanding Growth: -20 to -5%
{Sort by 10YR Shares Outstanding Growth}
7.) US Durable Dividend Leaders
{Country: Include US only}
Market Cap: $50M - infinity
Dividend per Share 10YR CAGR: 7% - infinity
Dividend Yield: 4% - infinity
Diluted EPS 10YR CAGR: 3% - infinity
Payout Ratio: 0% - 100%
{Sort by Dividend Yield}