Stock Screening and Selection

A systematic screening process helps you find quality stocks consistently.

What is Stock Screening?

• Filtering thousands of stocks by criteria
• Systematic approach to finding opportunities
• Removes emotional stock picking
• Based on fundamental or technical criteria

Fundamental Screens

Growth Stock Screen

• Revenue growth > 15% annually
• Earnings growth > 20% annually
• ROE > 15%
• Debt/Equity < 1.0
• Insider ownership > 5%

Value Stock Screen

• P/E below industry average
• P/B below 2.0
• Dividend yield > 2%
• Positive free cash flow
• Low debt levels

Quality Screen

• Profit margin above industry average
• Consistent earnings growth 5+ years
• Strong balance sheet
• High ROIC (Return on Invested Capital)
• Growing dividends

Technical Screens

Momentum Screen

• Price above 50 and 200 day MA
• RSI between 50-70
• New 52-week high
• Increasing volume

Breakout Screen

• Tight consolidation pattern
• Volume contracting
• Near resistance level
• Relative strength improving

Popular Screening Tools

• Finviz (free, powerful)
• TradingView screener
• Yahoo Finance screener
• Seeking Alpha

Building a Watch List

Process

1. Run screens weekly
2. Verify with manual analysis
3. Add to categorized watch list
4. Monitor for entry signals
5. Maximum 20-30 stocks on active list

Key Takeaways

1. Screen systematically, not randomly
2. Combine fundamental and technical
3. Keep criteria consistent
4. Update watch list weekly
5. Quality over quantity in selection