Complete Finviz Stock Screener Tutorial For Beginners

Finviz is a powerful, free tool that can help you quickly identify stocks that meet your specific investment criteria. Whether you're looking for undervalued companies, growth stocks, or dividend payers, Finviz can significantly streamline your stock screening process. However, for beginners, the sheer number of filters and options can be overwhelming. This tutorial breaks down the Finviz stock screener, walking you through its key features and showing you how to use it effectively to find your next investment opportunity.

Think of Finviz as your personal stock-finding assistant. Instead of manually sifting through thousands of stocks, you can use its filters to narrow down the universe to a manageable list that aligns with your investment strategy. This guide will cover the basics, helping you understand the interface and start using Finviz to your advantage.

Ready to dive in? Let's get started.

Navigating the Finviz Interface

First, head over to Finviz.com. The homepage might seem a bit cluttered at first, but don't worry, we'll focus on the important parts. The main area we'll be using is the "Screener" section. You can access it by clicking on the "Screener" tab at the top of the page.

Once you're on the Screener page, you'll see a table displaying a list of stocks and their basic information. Above the table are three tabs:

  • Descriptive: This tab contains filters related to a company's basic information, such as sector, industry, country, and market capitalization.
  • Fundamental: This tab allows you to filter stocks based on fundamental metrics like P/E ratio, EPS growth, dividend yield, and debt-to-equity ratio.
  • Technical: This tab focuses on technical indicators like moving averages, RSI, MACD, and volume.

These three tabs are your primary tools for filtering stocks. Let's explore each one in more detail.

Using the Descriptive Tab

The Descriptive tab is a great starting point for narrowing down your search based on broad categories. Here are some key filters you'll find here:

  • Country: Allows you to filter stocks by the country where the company is based.
  • Exchange: Filters stocks by the exchange they are listed on (e.g., NYSE, NASDAQ, AMEX).
  • Sector: Filters stocks by industry sector (e.g., Technology, Healthcare, Energy).
  • Industry: Allows you to narrow down further within a sector (e.g., within Technology, you might choose Software or Semiconductors).
  • Market Cap: Filters stocks based on their market capitalization (e.g., Small-Cap, Mid-Cap, Large-Cap).
  • Index: Filters stocks that are part of specific indexes like the S&P 500 or Dow Jones.

Example: Let's say you're interested in finding large-cap technology companies listed on the NASDAQ. You would select "USA" for Country, "NASDAQ" for Exchange, "Technology" for Sector, and "Large (Over $10B)" for Market Cap.

Leveraging the Fundamental Tab

The Fundamental tab is where you can apply filters based on a company's financial performance and valuation. This is crucial for finding undervalued or high-growth stocks. Here are some important filters to consider:

  • P/E Ratio: Price-to-Earnings ratio, a common valuation metric.
  • EPS Growth (this year, next year, past 5 years): Earnings Per Share growth rate.
  • Sales Growth (past 5 years): Revenue growth rate.
  • Dividend Yield: The percentage of a stock's price paid out as dividends annually.
  • Debt/Equity Ratio: A measure of a company's financial leverage.
  • Return on Equity (ROE): A measure of profitability relative to shareholder equity.
  • Return on Assets (ROA): A measure of profitability relative to total assets.

Example: Let's say you want to find companies with a low P/E ratio (indicating potential undervaluation) and strong EPS growth. You could set the "P/E Ratio" to "Under 15" and "EPS Growth Next 5 Years" to "Over 15%." This would identify companies that are relatively cheap compared to their earnings and expected to grow significantly.

Tip: Don't rely solely on one or two metrics. Use a combination of fundamental filters to get a more comprehensive view of a company's financial health.

Exploring the Technical Tab

The Technical tab allows you to filter stocks based on technical analysis indicators. This is useful for identifying stocks with specific chart patterns or momentum characteristics. Some key filters include:

  • Price: Current stock price.
  • Change: Percentage change in price.
  • Volume: Trading volume.
  • Average Volume: Average trading volume over a specified period.
  • RSI (14): Relative Strength Index, a momentum indicator.
  • Moving Average (20, 50, 200): Simple Moving Average, a trend-following indicator.
  • MACD Signal: Moving Average Convergence Divergence, another momentum indicator.
  • Pattern: Identifies specific chart patterns like triangles, wedges, and head and shoulders.

Example: Let's say you're looking for stocks that are showing strong upward momentum. You could set the "RSI (14)" to "Overbought" (typically above 70) and the "Price" to "Above 200-Day Moving Average." This would identify stocks that are currently trading with high momentum and are in an uptrend.

Caution: Technical analysis is not foolproof. Use it in conjunction with fundamental analysis for a more balanced approach.

Combining Filters for Targeted Results

The real power of Finviz lies in its ability to combine filters from all three tabs. This allows you to create highly specific screens that match your investment strategy.

Example: Let's say you want to find small-cap companies in the healthcare sector with a low debt-to-equity ratio and strong EPS growth. You would combine the following filters:

  • Descriptive Tab:
    • Sector: Healthcare
    • Market Cap: Small (Under $2B)
  • Fundamental Tab:
    • Debt/Equity Ratio: Under 0.5 (or another value you deem appropriate)
    • EPS Growth Next 5 Years: Over 10% (or another target growth rate)

This combination will narrow down the list of stocks to those that meet all of these criteria, saving you significant time and effort.

Customizing the Output Table

Once you've applied your filters, you can customize the columns displayed in the output table. Click on the "Columns" dropdown menu above the table and select the data points you want to see. This allows you to focus on the information that is most relevant to your analysis.

Saving Your Screens

Finviz allows you to save your custom screens for future use. This is a valuable feature for tracking specific investment strategies over time. To save a screen, you'll need to create a free account. Once logged in, click the "Save Screen" button above the table.

Beyond the Basics: Finviz Elite

While the free version of Finviz is incredibly useful, Finviz Elite offers additional features, such as real-time data, advanced charting tools, and more detailed fundamental data. If you find yourself using Finviz frequently and need access to more advanced features, consider upgrading to Finviz Elite. However, for most beginners, the free version provides more than enough functionality.

Conclusion: Your Journey to Smarter Stock Screening

Finviz is a powerful tool that can significantly enhance your stock screening process. By understanding the different filters and learning how to combine them effectively, you can quickly identify stocks that align with your investment goals. Remember to start with a clear investment strategy, experiment with different filters, and always do your own due diligence before making any investment decisions. Happy screening!