Finviz Stock Screener Features And How They Benefit You
Finviz.com is a powerful, free (with a paid Elite option) stock screener that provides investors with a wealth of information to identify potential investment opportunities. In a market saturated with data, Finviz cuts through the noise, allowing you to filter stocks based on a wide range of criteria, from fundamental metrics to technical indicators. This blog post will explore some of the key features of the Finviz stock screener and explain how they can benefit your investment strategy, whether you're a seasoned trader or just starting out. We'll focus on the free version, highlighting the core functionalities that make Finviz an indispensable tool for stock analysis.
This isn't just a list of features; it's a guide on how to leverage those features to improve your stock picking process and ultimately, your portfolio performance. Get ready to discover how Finviz can help you find your next winning investment.
1. Understanding the Finviz Screener Interface
The Finviz screener is organized into several tabs: Descriptive, Fundamental, Technical, All, and Custom. Each tab groups related screening criteria, making it easier to navigate the vast array of options. Let's break down what each tab offers:
Descriptive: This tab allows you to filter stocks based on basic information like market capitalization (Market Cap), sector, industry, country, and exchange. It's a great starting point for narrowing down your search to specific areas of the market. For example, if you're interested in small-cap companies in the technology sector, you can easily set those filters here.
Fundamental: This is where you dive into the financial health of a company. You can filter based on metrics like Price/Earnings (P/E) ratio, Price/Sales (P/S) ratio, Earnings Per Share (EPS), Return on Equity (ROE), and debt-to-equity ratio. This tab is crucial for value investors looking for undervalued companies with solid financials.
Technical: This tab focuses on technical analysis indicators. You can filter based on moving averages, relative strength index (RSI), MACD, volume, and chart patterns. Technical traders will find this tab invaluable for identifying stocks with specific technical setups.
All: This tab combines all the criteria from the Descriptive, Fundamental, and Technical tabs into one comprehensive view. It provides the most flexibility but can also be overwhelming if you're not sure what you're looking for.
Custom: This tab allows Elite subscribers to save their own custom filters. This feature provides a personalized experience for power users who frequently use the same screening criteria.
Benefit: The organized interface allows you to quickly and efficiently narrow down the stock universe based on your specific investment criteria.
2. Screening by Fundamental Metrics
Fundamental analysis is a cornerstone of value investing. Finviz makes it easy to screen for stocks based on key fundamental metrics. Here are a few examples:
P/E Ratio: Filter for stocks with a low P/E ratio compared to their industry peers, potentially indicating undervaluation. For example, you might look for companies with a P/E ratio below 15 in the consumer staples sector.
EPS Growth: Screen for companies with strong earnings per share (EPS) growth, suggesting future profitability. Look for companies with consistent EPS growth over the past few years.
Debt-to-Equity Ratio: Filter for companies with a low debt-to-equity ratio, indicating a strong financial position and less risk. A debt-to-equity ratio below 1 is generally considered healthy.
Dividend Yield: If you're an income investor, screen for stocks with a high dividend yield. Be cautious, however, and investigate whether the dividend is sustainable.
Benefit: Identifying fundamentally sound companies that meet your specific criteria, increasing the likelihood of long-term investment success.
3. Utilizing Technical Indicators for Trade Setups
Technical analysis focuses on price and volume data to identify potential trading opportunities. Finviz offers a wide range of technical indicators for screening:
Moving Averages: Screen for stocks trading above their 200-day moving average, indicating a long-term uptrend.
RSI (Relative Strength Index): Filter for stocks with an RSI below 30, suggesting they are oversold and potentially due for a bounce. Conversely, an RSI above 70 might indicate an overbought condition.
MACD (Moving Average Convergence Divergence): Screen for stocks with a bullish MACD crossover, signaling a potential buy signal.
Volume: Filter for stocks with unusually high volume, which can indicate increased investor interest and potential price movement.
Benefit: Identifying stocks with favorable technical setups, allowing you to time your entries and exits more effectively.
4. Combining Fundamental and Technical Analysis
The real power of Finviz lies in its ability to combine fundamental and technical criteria. This allows you to find stocks that are both fundamentally sound and technically attractive. For example, you could screen for:
- Companies with a low P/E ratio and trading above their 200-day moving average.
- Companies with strong EPS growth and a bullish MACD crossover.
- Companies with a high dividend yield and an RSI below 30.
By combining these analyses, you increase the probability of finding high-quality investment opportunities.
Benefit: Finding stocks that meet both fundamental and technical criteria, increasing the confidence in your investment decisions.
5. The Finviz Maps Feature
While technically not part of the screener, the Finviz "Maps" feature is a valuable tool for visualizing market performance. It provides a heat map of the stock market, color-coded by sector and industry, allowing you to quickly identify areas of strength and weakness. You can customize the map to show performance based on various timeframes, such as daily, weekly, monthly, or yearly changes.
Benefit: Gaining a quick overview of market trends and identifying sectors or industries that are outperforming or underperforming the overall market.
6. News and Headlines Integration
Finviz integrates news headlines directly into the screener results. This allows you to quickly assess the latest news and events affecting the companies you're screening. You can see headlines from various news sources, helping you stay informed about potential catalysts or risks.
Benefit: Staying informed about the latest news and events affecting the companies you're screening, allowing you to make more informed investment decisions.
7. Portfolio Tracking and Alerts (Elite Feature)
While this is a paid feature, the Elite version of Finviz offers portfolio tracking and email alerts. This allows you to monitor your portfolio performance and receive alerts when stocks in your portfolio meet specific criteria. This can be useful for tracking your investments and staying on top of market developments.
Benefit: Monitoring your portfolio performance and receiving timely alerts, allowing you to react quickly to market changes.
8. The "Groups" Tab: Sector and Industry Analysis
The "Groups" tab on Finviz provides a snapshot of sector and industry performance. It ranks sectors and industries based on various performance metrics, such as daily, weekly, monthly, and yearly changes. This allows you to identify which sectors and industries are leading the market and which are lagging.
Benefit: Identifying strong and weak sectors and industries, helping you focus your stock screening efforts on the most promising areas of the market.
Conclusion: Empowering Your Investment Decisions with Finviz
The Finviz stock screener is a powerful and versatile tool that can significantly enhance your investment process. By leveraging its various features, you can efficiently filter the stock market, identify potential investment opportunities, and make more informed decisions. Whether you're a value investor, a technical trader, or a combination of both, Finviz provides the data and tools you need to succeed. While the Elite version offers additional features, the free version is more than sufficient for most investors. So, start exploring Finviz today and discover how it can help you achieve your financial goals. Remember to always conduct thorough research and due diligence before making any investment decisions. Happy screening!