The Ultimate Guide On Stock Screeners

There are more than 5,500 stocks recorded on both chief exchanges at the U.S. and thousands more in the over-the-counter markets. To sort through them and locate the perfect stock for you, you will need a strong tool — the stock screener.


By an option screener to you personally for the primary exchanges, this guide will describe how to use these useful pieces of applications and explain just how you can locate the very best screeners online now.

What is a Stock Screener?
If you’re an investor searching for the perfect investment chance, then you may be slightly put off by the sheer quantity of shares available on the market nowadays. NYSE, the world’s biggest market, has approximately 2,800 businesses; NASDAQ has only over 2,700. The over-the-counter(OTC) markets — or markets involving two parties, with no usage of a formal market — comprise tens of thousands more.

The sheer quantity of shares available for investing, in addition to the huge amount of fiscal data you would need to sort through only to begin to narrow down the listing, requires some aid. You may get this type of assistance using a stock screener, a piece of software intended to assist you narrow down stocks based on the criteria you need to use.

Have you ever used an internet tool to locate used cars? It functions exactly the identical manner. If you would like, say, a four-door sedan from either Ford or GM, using less than 75,000 miles on it, priced for under $9,000, you can enter that standards to the tool. With the click of a single button, you will have effectively chucked out each used car from the market except for cars which fit that criteria.

How Can You Use a Stock Screener?
A option screener works exactly the exact same manner as the car finder tool. Let us say you would like to search for stocks with a market cap of at least $250 million, using a price-to-earnings ratio of 15-20. Rather than hunting down each business that matches this description and sorting through their own fiscal data — a process which could takehours, or even days — it is possible to have a stock screener and set in that data.

After you hit the search button, presto — you’ve basically eliminated the huge majority of stocks out there in favor of those that you would like.