What Is a Stock Screener?

Introduction

There are thousands of stocks you could buy in the United States alone. Researching every one of them would take forever. That is where a stock screener comes in. It is a tool that helps you narrow down your choices in seconds.

What Is a Stock Screener?

A stock screener is an online tool that filters stocks based on criteria you choose. Many free screeners are available on websites like Yahoo Finance, Finviz, and most brokerage apps. You can set filters for things like company size, industry, price, dividend yield, or growth rate.

Popular Filters

Investors looking for value might filter for low price-to-earnings ratios. Income investors might search for companies with dividend yields above 3%. Growth investors may look for companies with fast-rising revenue. You can also combine filters, such as large technology companies with low debt and steady profits.

Using Screeners Wisely

A screener is a starting point, not a final answer. A stock that looks cheap on a screener might be cheap for a good reason, like falling sales or legal trouble. After screening, investors should read about the business, check its financial statements, and understand its risks before investing.

Conclusion

Stock screeners turn an overwhelming market into a manageable list. Learning to use one is a great way to practice research skills and discover companies you might never have found on your own!