How To Compare Stocks Fast Using Finviz Screener
Picking stocks can feel like navigating a minefield. With thousands of publicly traded companies, how do you even begin to narrow down your choices and find potential winners? Fortunately, powerful stock screeners exist to help you filter the noise and focus on companies that meet your specific investment criteria. One of the most popular and user-friendly options is the Finviz stock screener.
Finviz offers a wealth of data, charting tools, and news, all accessible for free (with a premium subscription unlocking even more features). This post will guide you through using the Finviz screener to quickly compare stocks and identify promising investment opportunities. Whether you're a seasoned investor or just starting out, understanding how to leverage Finviz will significantly improve your stock selection process.
Let's dive into how to compare stocks fast using the Finviz screener.
1. Accessing the Finviz Screener
First things first, head over to the Finviz website: https://finviz.com/screener.ashx. You'll immediately see a table with a list of stocks and a navigation bar above it. This is your gateway to the powerful filtering capabilities of the Finviz screener.
2. Understanding the Screener Tabs
The navigation bar at the top of the screener is divided into three main tabs:
- Descriptive: This tab focuses on basic company information like sector, industry, country, market cap, and earnings date.
- Fundamental: This is where you'll find key financial ratios and metrics, such as price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, earnings per share (EPS), and dividend yield.
- Technical: This tab allows you to filter stocks based on technical indicators like moving averages, relative strength index (RSI), and trading volume.
Understanding these tabs is crucial for effectively comparing stocks based on your investment strategy.
3. Defining Your Investment Criteria
Before you start clicking around, take a moment to define what you're looking for in a stock. Are you interested in value investing, growth investing, or dividend investing? Are you looking for small-cap stocks, large-cap stocks, or something in between? Do you have specific sector preferences?
Having a clear idea of your investment criteria will make the screening process much more efficient. For example, if you're looking for value stocks, you might focus on companies with low P/E ratios and price-to-book (P/B) ratios. If you're looking for growth stocks, you might focus on companies with high revenue growth and earnings growth.
4. Using the Descriptive Tab for Initial Filtering
Let's say you're interested in technology companies in the United States with a market capitalization of at least $10 billion. Here's how you would use the "Descriptive" tab:
- Sector: Select "Technology".
- Country: Select "USA".
- Market Cap: Select "Mid ($2B to $10B)" or "Large (Over $10B)" or "Mega (Over $200B)" depending on your preference.
After applying these filters, the screener will only display technology companies in the US that meet your market cap requirement. This significantly narrows down your list of potential stocks.
5. Leveraging the Fundamental Tab for Deeper Analysis
Now that you've narrowed down your list using the "Descriptive" tab, you can use the "Fundamental" tab to further refine your search based on financial metrics.
Let's say you want to find technology companies with a P/E ratio below 20 and a dividend yield above 2%. Here's how you would do it:
- P/E: Select "Under 20".
- Dividend Yield: Select "Over 2%".
The screener will now display only technology companies in the US with a market cap of at least $10 billion, a P/E ratio below 20, and a dividend yield above 2%. This is a much more targeted list of stocks that align with your specific investment criteria.
6. Employing the Technical Tab for Timing Your Entry
The "Technical" tab can be used to identify stocks that are showing signs of strength or weakness based on technical indicators. While fundamental analysis helps you identify good companies, technical analysis can help you time your entry into the market.
For example, you might want to find stocks that are trading above their 200-day moving average, indicating a positive long-term trend. Here's how you would do it:
- SMA200: Select "Price Above SMA200".
This will filter the list to show only stocks that are trading above their 200-day moving average.
7. Customizing Your View with Columns
The default view of the Finviz screener displays a limited number of columns. You can customize the view by adding or removing columns to display the data that is most important to you.
To customize your view, click on the "Customize" button above the table. This will open a popup window where you can select the columns you want to display. For example, you might want to add columns for "Revenue Growth," "EPS Growth," and "Debt/Equity Ratio."
8. Saving Your Screens for Future Use
Once you've created a screen that you like, you can save it for future use. This will allow you to quickly access your favorite screens without having to re-enter your criteria each time.
To save a screen, click on the "Save Screen" button above the table. You'll need to create a free Finviz account to save your screens.
9. Comparing Stocks Side-by-Side
One of the most powerful features of Finviz is its ability to compare stocks side-by-side. To compare stocks, simply select the checkboxes next to the stocks you want to compare and then click on the "Compare" button above the table.
This will open a new page that displays a side-by-side comparison of the selected stocks, including key financial metrics, charts, and news. This allows you to quickly and easily compare the strengths and weaknesses of different companies.
10. Using Finviz Maps for Visualizing Market Trends
Finviz also offers interactive heatmaps that visualize market performance across different sectors and industries. These maps can help you identify areas of strength and weakness in the market and spot potential investment opportunities.
To access the Finviz maps, click on the "Maps" tab at the top of the Finviz website.
Example Scenario: Finding Undervalued Tech Stocks
Let's walk through a complete example. Suppose you want to find undervalued tech stocks in the US with solid profitability. Here's how you might use Finviz:
- Descriptive Tab: Sector: Technology, Country: USA
- Fundamental Tab: P/E Ratio: Under 15, Price/Book: Under 2, ROE (Return on Equity): Over 15%
- Technical Tab: (Optional) Price above 50-day moving average (for momentum).
This screen will give you a list of potentially undervalued tech stocks that are also profitable. Remember to do further due diligence on any stock that appears on your screen.
Important Considerations
- Data Accuracy: While Finviz is a valuable tool, it's important to remember that the data is only as good as the source. Always verify the data with other sources before making any investment decisions.
- Due Diligence is Key: The Finviz screener is a great starting point, but it's not a substitute for thorough research. Always read company reports, analyze financial statements, and consider the competitive landscape before investing in any stock.
- Don't Rely Solely on Screeners: Screeners are tools to narrow down your choices, not to make them for you. Use your own judgment and understanding of the market to make informed investment decisions.
Conclusion
The Finviz stock screener is a powerful tool that can help you quickly compare stocks and identify promising investment opportunities. By understanding how to use the different tabs and filters, you can create custom screens that align with your specific investment criteria. Remember to always do your own research and due diligence before investing in any stock. Happy investing!