Stock screeners are essential tools for investors seeking to identify investment opportunities based on specific criteria. Investing.com's platform offers robust screening capabilities that allow users to filter through thousands of stocks using customizable parameters. This article provides an overview of example screeners available on the platform, showcasing how these tools can help users efficiently navigate the markets and discover potential investments that match their specific requirements and strategies.
Asset Class Focus Screeners
Investing.com's screener tool allows to filter stocks based on different investment styles and asset class focuses. These pre-built examples capture the essence of popular investment categories that can be further customized to suit your individual preferences.
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Value Screener: Profitable companies that may be trading below their intrinsic value.
Example
This screening approach helps you discover potentially undervalued stocks that traditional value investors often seek. The screener includes parameters focused on valuation metrics such as price-to-earnings ratios, price-to-book values, and other fundamental indicators that highlight companies trading at potentially attractive valuations relative to their financial performance.
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Core Screener: For investors seeking financially sound businesses, the Core Screener identifies profitable, low-debt companies with positive high free cash flows and strong return on equity (ROE).
Example
This screening approach helps you discover potentially undervalued stocks that traditional value investors often seek. The screener includes parameters focused on valuation metrics such as price-to-earnings ratios, price-to-book values, and other fundamental indicators that highlight companies trading at potentially attractive valuations relative to their financial performance.
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Growth Screener: The Growth Screener targets companies experiencing rapid expansion but that may not yet be profitable or are only marginally profitable.
Example
This screening strategy is potentially valuable for investors interested in businesses with significant revenue growth, expanding market share, or operating in emerging sectors with substantial growth potential.
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Momentum Screener: The Momentum Screener filters for stocks demonstrating positive returns over various time intervals.
Example
This approach helps identify securities with upward price trends, which momentum-focused investors often seek. The screener analyzes performance across different timeframes to highlight stocks showing consistent positive price movement.
Geographic Focus Screeners
Investing.com's platform offers powerful geographic filtering capabilities that allow you to narrow your investment universe based on location-specific criteria.
You can focus on companies operating in specific countries by utilizing the operating region or operating country filters. This feature is potentially useful for investors seeking exposure to specific geographic markets or looking to diversify their portfolios internationally.
Alternatively, for those interested in companies listed on particular exchanges, the platform offers trading region or stock exchange filters. These tools enable users to screen for stocks based on where they're traded rather than where they conduct operations, providing flexibility in constructing geographically diverse portfolios.
Specialized Strategy Screeners
Investing.com offers an extensive collection of specialized screening strategies based on research-backed methodologies. These pre-built screeners enable you to apply sophisticated investment approaches with ease.
Value-Based Strategies
The Low EV/EBITDA screener is inspired by James O'Shaughnessy's research, which found that stocks with a low Enterprise Value to EBITDA ratio historically performed well compared to the broader market.
The High Earnings Yield screener identifies companies with attractive earnings relative to their price, following O'Shaughnessy's research suggesting these companies tend to deliver solid performance.
Quality-Focused Approaches
The Piotroski F-Score screener applies a financial indicator designed by accounting professor Joseph Piotroski to evaluate a business's financial strength based on profitability, leverage, liquidity, funding sources, and operational efficiency. Piotroski's research indicated that using this score to select financially strong companies among those with low P/B ratios increased mean returns significantly.
The Founder-Led Companies screener is based on Bain & Company's research, which found that S&P 500 companies with founders who remained deeply involved demonstrated notably strong performance over the 15-year period from 1999 to 2014.
Earnings Quality Assessment
The James Montier C-Score screener utilizes a financial indicator designed to evaluate the likelihood a company is manipulating its earnings. Montier's 2008 paper demonstrated that stocks with high C-scores historically underperformed the market by approximately 8% annually in the US and 5% annually in Europe (during 1993-2003).
The Sloan Ratio screener applies a financial indicator developed by Richard Sloan to evaluate earnings quality. Sloan's research showed that businesses with high accrual ratios significantly underperformed those with low accrual ratios.
The Beneish M-Score screener employs a statistical model specifically designed to identify companies potentially manipulating their earnings.
Momentum and Trend Strategies
The Momentum screener is based on O'Shaughnessy's research indicating that stocks with the strongest 6-month momentum substantially outperformed the market during the 83-year backtest period between 1926 and 2009.
The Trending Value screener implements a strategy developed by James O'Shaughnessy and published in his book "What Works On Wall Street." This approach combines value and momentum factors.
Additional Strategy Screeners
Other specialized screeners include:
- Rule Of 40: A screener designed to identify suitable for investors looking for quality SaaS (Software as a Service) businesses
- Dogs Of The Dow: Based on the popular investment strategy published by Michael B. O'Higgins in 1991
- High Shareholder Yield: Focuses on companies returning value to shareholders
- High Asset Turnover: Based on O'Shaughnessy's research suggesting companies efficiently utilizing assets often outperform
Getting Started With Screeners
Investing.com's example screeners provide excellent starting points for both new and experienced investors looking to discover investment opportunities matching specific criteria. You can easily access these pre-built templates and further customize them according to your personal investment preferences and objectives.
InvestingPro users have created thousands of interesting screens using the Stock Screener tool. The platform is designed to make learning the screening process intuitive by allowing you to review example screeners that illustrate different approaches to stock selection. These examples serve as educational tools that demonstrate how various screening parameters can be combined to identify stocks matching specific investment theses.
By exploring these example screeners, you can gain insights into different investment methodologies and develop your own custom screening approaches tailored to your unique investment goals. The screener functionality represents just one of the many powerful tools available on the Investing.com platform designed to help investors make more informed decisions when navigating financial markets.
Disclaimer: Past performance is not indicative of future results. The stock screeners and strategies discussed are for informational and educational purposes only and should not be considered investment advice. Investing in the stock market involves risk, including the potential loss of principal. Always conduct your own research or consult with a qualified financial advisor before making investment decisions.
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