Article by Investopedia.com
Selecting good stocks isn’t easy. The sheer volume of companies makes zeroing in on a good stock difficult and the volumes of data on the internet don’t make things any easier. In fact, it’s hard to sort out the useful information from all the worthless data. Fortunately, a stock screener can help you focus on the stocks that meet your standards and suit your strategy.
Stocks screeners are effective filters when you have a specific idea of the kinds of companies in which you are looking to invest. There are thousands of stocks listed on exchanges in the United States alone; it’s just not feasible to track all of them on your own. A stock screener limits exposure to only those stocks that meet your unique parameters.
- Stock screening is the process of searching for companies that meet certain financial criteria.
- By answering a series of questions and entering your search criteria, screeners give you a list of stocks that meet your requirements.
- Some of the best free screeners on the web include those offered by Yahoo! Finance, StockFetcher, Chart Mill, Zacks, Stock Rover, Google Finance, and FinViz.
- Make sure you take the screener results as a first step and remember to do your own research as well.