How To Create Custom Stock Screens On Finviz

Finviz.com is a powerful, free (with a premium option) tool for stock market research. One of its most valuable features is its stock screener, which allows you to filter stocks based on a vast array of criteria. While the pre-built screens are useful, the real power lies in creating custom stock screens tailored to your specific investment strategy. This guide will walk you through the process of building your own custom stock screens on Finviz, enabling you to find the stocks that perfectly match your criteria.

Whether you're a value investor looking for undervalued companies or a growth investor seeking high-momentum stocks, mastering the Finviz screener will significantly improve your stock selection process. We'll cover everything from accessing the screener to understanding the different filters and saving your custom screens for future use. Let's dive in!

1. Accessing the Finviz Stock Screener

First things first, you need to access the stock screener. Here's how:

  • Go to Finviz.com: Open your web browser and navigate to the Finviz website.
  • Click on "Screener": You'll find a "Screener" tab at the top of the page. Click on it.

You'll now be on the main stock screener page, ready to start building your custom screen.

2. Understanding the Finviz Screener Interface

The Finviz screener interface is divided into several tabs, each containing different categories of filters:

  • Descriptive: This tab includes basic information about the company, such as market capitalization, sector, industry, and country.
  • Fundamental: This tab focuses on fundamental financial data, including price-to-earnings ratio (P/E), earnings per share (EPS), revenue growth, and debt-to-equity ratio.
  • Technical: This tab contains technical indicators, such as moving averages, relative strength index (RSI), and trading volume.
  • All: This tab combines all the filters from the previous tabs into one comprehensive list.

Getting familiar with these tabs is crucial for efficiently navigating the screener and finding the filters you need.

3. Choosing Your Filters: A Step-by-Step Guide

Now, let's create a custom stock screen. For this example, let's say we're looking for growth stocks with strong earnings and reasonable valuations. Here's a step-by-step guide:

  • Define Your Criteria: Before you start, clearly define what you're looking for. For our example, we want:
    • Market Cap: Mid or Large Cap (to avoid smaller, riskier companies)
    • EPS Growth Next 5 Years: Above 15% (indicating strong growth potential)
    • P/E Ratio: Below 25 (a reasonable valuation)
    • Price: Above $10 (avoiding penny stocks)
  • Navigate to the Appropriate Tabs:
    • Descriptive: Select "Market Cap" and choose "Mid ($2-10bln)" and "Large (Over $10bln)".
    • Fundamental: Select "EPS Growth Next 5 Years" and choose "Over 15%". Then, select "P/E Ratio" and choose "Under 25".
    • Descriptive: Select "Price" and choose "Over $10".
  • Apply the Filters: For each criterion, select the appropriate filter from the dropdown menu. The screener will automatically update the results based on your selections.
  • Refine Your Results: As you add filters, the number of stocks that meet your criteria will decrease. If you have too few or too many results, adjust your filters accordingly. For example, you might loosen the EPS growth requirement or tighten the P/E ratio requirement.

Example: Building a Value Stock Screen

Let's build another example, this time focusing on value stocks:

  • Define Your Criteria:

    • Market Cap: Mid or Large Cap
    • P/E Ratio: Under 15
    • Price to Book Ratio: Under 2
    • Dividend Yield: Over 2%

  • Navigate to the Appropriate Tabs:

    • Descriptive: Select "Market Cap" and choose "Mid ($2-10bln)" and "Large (Over $10bln)".
    • Fundamental: Select "P/E Ratio" and choose "Under 15". Select "Price/Book" and choose "Under 2". Select "Dividend Yield" and choose "Over 2%".

  • Apply the Filters: Apply the filters as described above.

  • Analyze the Results: Review the list of stocks that meet your criteria. Research each company further to determine if it's a suitable investment for your portfolio.

4. Understanding Key Filters and Their Implications

Here's a breakdown of some commonly used filters and what they indicate:

  • Market Capitalization: Indicates the size of the company. Larger companies tend to be more stable, while smaller companies offer more growth potential but also carry higher risk.
  • P/E Ratio: Measures the price of a stock relative to its earnings per share. A lower P/E ratio may indicate that a stock is undervalued.
  • EPS Growth Next 5 Years: Estimates the expected growth rate of a company's earnings per share over the next five years. Higher growth rates suggest strong future performance.
  • Debt/Equity Ratio: Measures the amount of debt a company has relative to its equity. A lower ratio indicates a more financially stable company.
  • Dividend Yield: Measures the annual dividend payment as a percentage of the stock price. Higher dividend yields can provide a steady stream of income.
  • Relative Strength Index (RSI): A momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset.

Understanding these filters and their implications is crucial for building effective stock screens that align with your investment goals.

5. Saving and Loading Your Custom Screens

Once you've created a custom screen, you can save it for future use. This saves you time and effort by allowing you to quickly access your favorite screens without having to re-enter the filters each time.

  • Click "Save Screen": At the top of the screener page, you'll find a "Save Screen" button.
  • Name Your Screen: Enter a descriptive name for your screen and click "Save".

To load a saved screen:

  • Click "Load Screen": Next to the "Save Screen" button, you'll find a "Load Screen" button.
  • Select Your Screen: Choose the screen you want to load from the dropdown menu.

6. Advanced Finviz Screener Techniques

  • Using Multiple Filters Within a Category: You can select multiple options within a single filter category. For example, you can select both "Over 15%" and "Over 20%" for EPS Growth Next 5 Years to broaden your search.
  • Combining Fundamental and Technical Filters: Combine fundamental filters (like P/E ratio) with technical filters (like RSI) to find stocks that meet both fundamental and technical criteria.
  • Using Signals: The "Signal" filter offers pre-defined technical analysis signals like "Top Gainers," "New Highs," and "Unusual Volume." These can quickly identify stocks exhibiting specific trading patterns.
  • Exporting Data: Finviz allows you to export the screener results to a CSV file for further analysis in spreadsheet software like Excel. This is a premium feature.

7. Common Mistakes to Avoid

  • Over-Filtering: Adding too many filters can result in a very small list of stocks, potentially missing out on good investment opportunities.
  • Ignoring Qualitative Factors: The screener only provides quantitative data. Remember to research the company's management, competitive landscape, and industry trends before making any investment decisions.
  • Relying Solely on Screeners: A stock screener is just a starting point. Always conduct thorough due diligence before investing in any stock.
  • Not Regularly Reviewing Screens: Market conditions change. Regularly review and adjust your screens to ensure they continue to align with your investment strategy.

Conclusion

Creating custom stock screens on Finviz is a powerful way to identify stocks that meet your specific investment criteria. By understanding the different filters, saving your screens, and avoiding common mistakes, you can significantly improve your stock selection process and increase your chances of finding profitable investments. Remember to combine the quantitative data from the screener with qualitative research to make informed investment decisions. Happy screening!