Finviz Stock Screener: Setting Your Stock Price Targets

Setting realistic stock price targets is crucial for successful investing. It helps you define your investment goals, manage risk, and make informed decisions about when to buy or sell. But where do you even begin? The vastness of the stock market can be overwhelming. That's where the Finviz stock screener comes in.

Finviz is a powerful, free (with a premium option) tool that allows you to filter stocks based on a multitude of criteria. While many investors use Finviz to find potential investments, it's equally valuable for determining reasonable price targets for stocks already in your portfolio, or those you are considering adding. This guide will walk you through using Finviz to analyze stocks and set those all-important price targets.

Why Use Finviz for Price Target Analysis?

Finviz offers a comprehensive overview of a stock's financials, technical indicators, and analyst ratings, all in one place. This eliminates the need to jump between multiple websites and sources. Here’s why it’s a great tool for target price analysis:

  • Comprehensive Data: Access key financial ratios, earnings data, and price charts.
  • Analyst Ratings: See what professional analysts think about a stock's potential.
  • News & Headlines: Stay updated on the latest news that could impact a stock's price.
  • Customizable Screening: Filter stocks based on specific criteria relevant to your investment strategy.

Step-by-Step Guide: Using Finviz to Set Stock Price Targets

Here’s how to use Finviz to gather the information you need to set realistic stock price targets:

1. Access the Finviz Website:

Go to Finviz.com. The free version offers plenty of functionality for basic analysis.

2. Search for Your Stock:

In the top search bar, enter the ticker symbol of the stock you want to analyze. For this example, let's use Apple (AAPL).

3. Analyze the "Overview" Tab:

The "Overview" tab is your starting point. Here’s what to look for:

  • Price & Performance: Check the current price, 52-week high and low, and year-to-date performance. This gives you a sense of the stock's recent trading range.
  • Market Cap: Understand the size of the company. Large-cap stocks tend to be more stable than small-cap stocks.
  • P/E Ratio (Price-to-Earnings): This ratio compares the stock price to the company's earnings per share. Compare it to the industry average to see if the stock is overvalued or undervalued.
  • EPS (Earnings Per Share): Look at the current EPS and the EPS growth rate. Is the company consistently profitable?
  • Dividend Yield: If you're looking for income, check the dividend yield.
  • Analyst Recommendations: Pay attention to the "Analyst Recom" section. This shows the consensus rating from analysts covering the stock (e.g., Buy, Hold, Sell). Note that analyst ratings are not always accurate, but they can provide a general sentiment.
  • News: Scan the latest news headlines to identify any potential catalysts (positive or negative) that could affect the stock price.

4. Dive into the "Financials" Tab:

The "Financials" tab provides a deeper look into the company's financial health. Key metrics to consider include:

  • Revenue Growth: Is the company's revenue growing consistently?
  • Profit Margin: How profitable is the company? A higher profit margin is generally better.
  • Debt/Equity Ratio: This ratio measures the company's debt relative to its equity. A high ratio can indicate financial risk.
  • Cash Flow: Is the company generating positive cash flow? This is essential for long-term sustainability.

5. Examine the "Technical" Tab:

The "Technical" tab displays various technical indicators. These can help you identify potential support and resistance levels, which can be used to set price targets.

  • Moving Averages: Look at the stock's position relative to its moving averages (e.g., 50-day, 200-day). A stock trading above its moving averages is generally considered to be in an uptrend.
  • RSI (Relative Strength Index): This indicator measures the magnitude of recent price changes to evaluate overbought or oversold conditions. An RSI above 70 typically indicates an overbought condition, while an RSI below 30 suggests an oversold condition.
  • MACD (Moving Average Convergence Divergence): This indicator shows the relationship between two moving averages of a stock's price. Crossovers can signal potential buy or sell opportunities.

6. Consider Analyst Price Targets (But Don't Rely Solely on Them):

While Finviz doesn't directly display all analyst price targets, you can often find them by searching online for "[Stock Ticker] analyst price target." Remember that analyst price targets are just one piece of the puzzle. They are based on analysts' estimates and assumptions, which may not always be accurate. Use them as a starting point, but do your own research and form your own opinion.

7. Factor in Your Investment Goals and Risk Tolerance:

Your price target should align with your investment goals and risk tolerance. Are you looking for short-term gains or long-term growth? Are you comfortable with high volatility or do you prefer a more conservative approach?

  • Growth Investors: May set higher price targets based on optimistic growth projections.
  • Value Investors: May look for undervalued stocks with the potential for price appreciation.
  • Income Investors: May focus on stocks with high dividend yields.

8. Setting Your Price Target:

Based on your analysis of the factors above, you can now set your price target. Here are a few approaches:

  • Based on Analyst Targets: If the consensus analyst price target is $200, you might set your target at $190 if you want to be more conservative, or $210 if you're more optimistic.
  • Based on Technical Analysis: Identify key resistance levels on the price chart. These levels often act as price targets.
  • Based on Fundamental Analysis: Project the company's future earnings and use a valuation model (e.g., discounted cash flow) to estimate the stock's fair value.

Example: Setting a Price Target for Apple (AAPL)

Let's say you're analyzing Apple (AAPL) using Finviz.

  • Overview: You see that the stock is trading near its 52-week high, has a solid P/E ratio compared to the industry, and has positive analyst recommendations.
  • Financials: You observe consistent revenue growth, strong profit margins, and healthy cash flow.
  • Technical: The stock is trading above its 200-day moving average, suggesting an uptrend.
  • Analyst Targets: You find that the average analyst price target is $200.

Based on this analysis, you might set a price target of $210, reflecting your confidence in Apple's continued growth. However, you might also set a stop-loss order at $170 to protect your investment in case the stock price declines.

Important Considerations

  • Diversification: Don't put all your eggs in one basket. Diversify your portfolio across different stocks and sectors.
  • Market Conditions: Be aware of overall market trends and economic conditions. These can significantly impact stock prices.
  • Company-Specific News: Stay updated on company-specific news and events. Earnings releases, product announcements, and management changes can all affect the stock price.
  • Regularly Review and Adjust: Your price targets are not set in stone. Review them regularly and adjust them as needed based on new information.

Conclusion

The Finviz stock screener is a valuable tool for setting realistic stock price targets. By using it to analyze a stock's financials, technical indicators, and analyst ratings, you can make more informed investment decisions. Remember to consider your own investment goals and risk tolerance, and don't rely solely on analyst recommendations. Setting price targets is an ongoing process, so be sure to regularly review and adjust your targets as needed. By combining the power of Finviz with your own research and analysis, you can increase your chances of investment success.