what is the screener in stock market?

Updated: 07-Feb-2023

A stock screener is a tool that allows traders and investors to filter and search for stocks based on specific criteria. The criteria can include financial metrics such as price-to-earnings ratio, market capitalization, and dividend yield, as well as technical indicators such as moving averages and relative strength index.

Screener can be used to find stocks that meet specific investment criteria, such as stocks that are undervalued or have strong growth potential. For example, an investor looking for undervalued stocks with strong growth potential could use a screener to filter for stocks with a low price-to-earnings ratio and high revenue growth.

Stock screeners can be found on various websites, such as financial news websites, brokerage websites, and independent financial research websites. They can also be found as a built-in feature of trading platforms and trading software.

Screener can also be used to filter stocks based on fundamental factors such as financial statements, revenue growth, and EPS growth. This can be helpful for value investors who are looking for stocks that are undervalued based on their fundamentals.

In summary, a stock screener is a tool that allows traders and investors to filter and search for stocks based on specific criteria such as financial metrics and technical indicators. It can be a powerful tool for finding stocks that meet specific investment criteria and can be found on various websites and trading platforms.

A stock screener is a powerful tool that allows traders and investors to filter and search for stocks based on a variety of criteria. These criteria can include financial metrics, such as price-to-earnings ratio, market capitalization, and dividend yield, as well as technical indicators, such as moving averages and relative strength index (RSI).

The financial metrics that can be used in a stock screener can include:

  • Price-to-earnings ratio (P/E ratio): This metric compares a stock's price to its earnings per share (EPS) and is used to determine if a stock is overvalued or undervalued.
  • Market capitalization: This metric represents the total value of a company's outstanding shares and can be used to filter stocks based on their size.
  • Dividend yield: This metric represents the annual dividend a stock pays as a percentage of its price and can be used to find stocks that pay a high dividend.
  • Revenue growth: This metric measures the increase in a company's revenue over a period of time, it can be helpful for finding companies that are growing at a faster rate.
  • EPS growth: This metric measures the increase in a company's EPS over a period of time, it can be used to identify companies that have a positive trend in profitability.

The technical indicators that can be used in a stock screener include:

  • Moving averages: These indicators show the average price of a stock over a certain period of time and can be used to identify trends in the market.
  • Relative strength index (RSI): This indicator compares a stock's recent gains to its recent losses and can be used to identify if a stock is overbought or oversold.

Screener can also be used to filter stocks based on sectors, industries, or geographical regions. This can be helpful for traders and investors who are looking to focus on specific areas of the market.

Once the criteria have been set, the screener will then generate a list of stocks that meet those criteria. Traders and investors can then use this list to further research and analyze the stocks that have been identified. They can also use the list to create a watchlist of stocks that they are interested in following or potentially trading.

Stock screeners can be found on various websites, such as financial news websites, brokerage websites, and independent financial research websites. They can also be found as a built-in feature of trading platforms and trading software. Some popular stock screeners include Finviz, Yahoo Finance, and Zacks.

It's important to note that a stock screener is not a guarantee of a profit, and it's not a strategy that should be used alone. Traders and investors should always combine the use of a stock screener with other forms of analysis, such as fundamental analysis and technical analysis, as well as a proper risk management strategy.

In summary, a stock screener is a powerful tool that allows traders and investors to filter and search for stocks based on a variety of criteria such as financial metrics, technical indicators, sectors, industries, and geographical regions. It can be used to identify stocks that meet specific investment criteria, create a watch list of stocks to follow, and as a starting point for further research and analysis. However, it's important to remember that it's not a guarantee of a profit and it should be used in conjunction with other forms of analysis and a proper risk management strategy.