Saturday , 18 August 2018

Stock Screener Evaluation: 20 Contenders; 11 Worth Mentioning; 4 Winners; 1 Surprise

Screening for stocks is one of the most important elements in your investing strategy.  Whether you are a day trader or a long-term investor, finding the companies that match your idea of what makes a good investment is critical. We have evaluated the most popular well-known companies and pitted them against some newcomers to save you time and enable you to make the right choice of Stock Screener to meet your needs.  The results will surprise you.

The original article has been edited here for length (…) and clarity ([ ]) by munKNEE.com – A Site For Sore Eyes & Inquisitive Minds – to provide a fast & easy read.

We evaluated 20 contenders and trimmed the list to only 11 worth mentioning.  There are clearly 4 winners based on our evaluation.  The winners were selected based on the number of filterable, customizable criteria available in the Stock Screener, but also including value for money, usability, and innovation.

Below are the results of the 550 Data Point Comparison which resulted in the following 11 stock screener companies & 4 the winners. Make this the webs most detailed review of stock screeners.

The In-Depth Stock Screener Comparison

The Winners – Best Stock Screeners – Detailed Reviews

The Other Contenders

The 6 Step Process to Follow Before You Buy A Stock 

Here is a simple process I use to find winning stocks.

  1. Understanding – Understand what you are looking for. (Fundamentals – EPS% Acceleration).  I cover some of the core of fundamentals in our Stock Market Profits Blueprint and in our Course 102 – Stock Market Investing
  2. Selection – Use your selection criteria to narrow down the 7000+ stocks on the US Stock Markets or over 50,000 stock worldwide. (Stock Screening – covered in detail in the PRO Training)
  3. Fundamentals – From your Screened List, you can then review in detail further detailed fundamentals.
  4. Industry Knowledge (optional) – Learn a little about the industry of the stocks you are interested in.
  5. Technical Analysis – Analyse the Price Patterns, to assess when to BUY “Charting”
  6. Buying Strategy – Work out your Entry and Exit Strategy

Now we know what the process is before we buy, we will now focus on the screener to use and the selection criteria so find good companies.

5 Important Screener Selection Criteria To Find Potential Growth Stocks

This section is explicitly about filtering out the junk to find the Gems.  This screen is highly focused on fast-growing companies.

  1. Close Price >= $4 – This is the Share Price of the Stock at last market close. Use this to filter out Penny Stocks, there is a reason that the share price of a stock can be so small, and it is not usually a good reason, stocks decline in price because the company’s behind the stock are usually run poorly, or have little if any cash flow.
  2. Market Capitalization >= $200 Million – This is the worth of all the outstanding stocks added together. Essentially the worth of the company. You could use a figure of $100 Million, of $50 Million if you wish, this depends on what you personally think constitutes a stable business size. Although the phrase coined recently is “too big to fail”, which sends shivers of paranoia through the private investor.
  3. EPS % Change Last Quarter >= 30% – This is the % increase of the EPS for the last three months. I set this a 30%, to show us stocks performing strongly.
  4. EPS % Growth 1 Year >= 50% – Combined with the previous criteria, this helps us separate the growth stocks. This means over the last year the earnings have increased over 50%. Never a bad thing.
  5. Projected EPS Change Current Quarter >= 30% – This means the companies estimated Earnings for this quarter. In the current climate you could drop this to 20% if you wish, as demand is contracting a lot, so 20% would still be healthy.

Your List of Great Companies To Invest In

  • After you run this screen you will have a list of potential stocks.  This list changes over time so do not expect it to be the same as the list above.
  • What you are left with is companies which are a good size, relatively stable, which strong revenue and profitability.
  • You may not have heard of these companies they may still be relatively small, but they may hold the key to long-term strong price appreciation.

The Results

If you do not have time to read the entire review, click below to jump to our recommendations.

Best for U.S. & International Value Investors who want the best selection of Fundamental Criteria – Screener.co 

Best for International Traders wanting excellent Fundamental & Technical Stock Screeners at a great price point – TradingView

Best for U.S. & Canadian Investors, wanting fantastic Fundamental & Technical Screening at a great price point – TC2000

Best for International Investors & Traders wanting Great All Round Stock Screening Capabilities + the Best Real-Time News – MetaStock

Best Free Stock Screener

Conclusion

Most of the big players in stock screeners, actually offer a service that is garbage and not worth your time.  Stick with these review winners and you will know you have the best.

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Related Article From the munKNEE Vault:

Stock Screeners Can Help You Find Winning Stocks to Invest In – Here’s How

Let’s look at how to screen for stocks that could form your base list of stocks to review in detail. Here is the process I use to find winning stocks.

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