How To Use Finviz.com To Find Winning Stocks Fast

Finding winning stocks can feel like searching for a needle in a haystack. Sifting through endless financial data and news can be overwhelming, especially for new investors. But what if there was a free, powerful tool that could significantly streamline your stock screening process? Enter Finviz.com.

Finviz is a comprehensive financial visualization platform that offers a wealth of information and tools for stock research. Its intuitive interface and robust screening capabilities make it a favorite among both novice and experienced investors. This guide will walk you through how to leverage Finviz to quickly identify potential winning stocks based on your specific investment criteria.

Let's dive in and unlock the power of Finviz!

1. Understanding the Finviz Homepage

The Finviz homepage provides a snapshot of the market, including key indices, top news stories, and a heat map visualizing sector performance. While this is useful for getting a general sense of market conditions, the real magic happens in the screener.

Take a few minutes to familiarize yourself with the layout. Notice the various tabs at the top: News, Screener, Maps, Groups, Portfolio, Elite. We'll primarily focus on the "Screener" tab for this guide.

2. Navigating to the Finviz Stock Screener

Click on the "Screener" tab. This will take you to the heart of Finviz's stock-picking capabilities. You'll see a table displaying a list of stocks, along with various filters above it. These filters are your key to finding stocks that meet your specific criteria.

3. Mastering the Finviz Filters: Descriptive, Fundamental, and Technical

The Finviz screener offers three main types of filters: Descriptive, Fundamental, and Technical. Understanding these filters is crucial for effectively narrowing down your stock universe.

  • Descriptive: These filters focus on basic company information such as market capitalization (Market Cap), sector, industry, country, and exchange. They're useful for targeting companies of a certain size or within a specific industry.

    • Example: If you're interested in small-cap companies, you would use the "Market Cap" filter and select "Small (Under $2 Billion)."

  • Fundamental: These filters delve into a company's financial health and performance. Key metrics include Price/Earnings Ratio (P/E), Earnings per Share (EPS), Return on Equity (ROE), Debt/Equity Ratio, and dividend yield.

    • Example: If you're looking for undervalued companies, you might filter for stocks with a low P/E ratio (e.g., "P/E < 15").

  • Technical: These filters analyze price and volume data to identify potential trading opportunities. Common technical indicators include moving averages, relative strength index (RSI), MACD, and volume patterns.

    • Example: If you're looking for stocks that are trending upwards, you might filter for stocks where the "Price is above 200-Day Simple Moving Average."

4. Setting Your Investment Criteria: A Step-by-Step Guide

Now, let's put these filters into practice. The key is to define your investment criteria before you start screening. What are you looking for in a stock? Growth potential? Value? Dividends? A combination?

Here's a step-by-step example of how to set your criteria:

  1. Determine Your Investment Style: Are you a growth investor, a value investor, or something else? This will guide your filter choices.

  2. Choose Relevant Filters: Based on your style, select the filters that align with your goals. For example, a growth investor might prioritize EPS Growth and Revenue Growth, while a value investor might focus on P/E Ratio and Price/Book Ratio.

  3. Set Specific Values: Define the specific values for each filter. This is where your research and analysis come into play. For example, you might set "EPS Growth (this year)" to "Over 20%" and "P/E Ratio" to "Under 20."

  4. Apply the Filters: Once you've set your values, apply the filters to the Finviz screener.

  5. Analyze the Results: Review the list of stocks that meet your criteria. Don't just blindly invest in the first stock you see. Conduct further research on each company before making a decision.

Example Scenario: Finding Growth Stocks

Let's say you're looking for growth stocks with strong earnings potential. Here's how you might use the Finviz screener:

  • Descriptive:
    • Market Cap: Mid ($2 Billion to $10 Billion) - This focuses on companies with established growth potential.
  • Fundamental:
    • EPS Growth (this year): Over 20% - Indicates strong earnings growth.
    • Revenue Growth (this year): Over 10% - Shows increasing sales.
    • Return on Equity (ROE): Over 15% - Suggests efficient use of shareholder equity.
  • Technical:
    • Price above 50-Day SMA: True - Indicates an upward trend.

After applying these filters, Finviz will display a list of stocks that meet these criteria. You can then further research these companies to determine if they are a good fit for your portfolio.

5. Customizing Your Output: Columns and Charts

Finviz allows you to customize the columns displayed in the screener results. This is helpful for focusing on the metrics that are most important to you.

To customize the columns, click on the "Columns" dropdown menu above the results table. You can add or remove columns based on your preferences.

In addition to the table view, Finviz also offers charts for each stock. These charts provide a visual representation of the stock's price history and technical indicators. You can access the charts by clicking on the ticker symbol of a stock in the screener results.

6. Saving Your Screens: Staying Organized

Once you've created a screen that you like, you can save it for future use. This allows you to easily re-run your screen and stay on top of potential investment opportunities.

To save a screen, click on the "Save Screen" button above the results table. You'll need to create a free Finviz account to save your screens.

7. Using Finviz Maps and Groups for Sector Analysis

Beyond the screener, Finviz offers valuable tools for analyzing market sectors and industries. The "Maps" tab provides a visual representation of sector performance, allowing you to quickly identify which sectors are leading the market.

The "Groups" tab provides detailed information on various industries, including their performance, valuation, and growth rates. This can help you identify promising industries to focus your stock screening efforts on.

8. Potential Pitfalls and How to Avoid Them

While Finviz is a powerful tool, it's important to be aware of its limitations.

  • Data Accuracy: While Finviz strives for accuracy, data errors can occur. Always verify information with other sources.
  • Over-Reliance on Screening: Don't rely solely on the screener to make investment decisions. Conduct thorough fundamental and technical analysis before investing in any stock.
  • Ignoring Qualitative Factors: Finviz focuses primarily on quantitative data. Don't forget to consider qualitative factors such as management quality, competitive landscape, and industry trends.

9. Advanced Finviz Tips and Tricks

  • Using "Signal" Filters: The "Signal" filters offer pre-defined technical patterns like "Top Gainers," "New Highs," and "Unusual Volume." These can quickly identify stocks exhibiting specific trading characteristics.
  • Combining Fundamental and Technical Filters: The most effective screens often combine both fundamental and technical criteria. This allows you to identify stocks with strong financial health and positive price momentum.
  • Backtesting Your Strategies: While Finviz doesn't offer full backtesting capabilities, you can manually backtest your screening criteria by reviewing historical data. This can help you assess the effectiveness of your strategies.

Conclusion: Your Fast Track to Stock Screening Success

Finviz.com is a valuable resource for any investor looking to quickly identify potential winning stocks. By mastering the screener's filters, understanding the different types of data available, and avoiding common pitfalls, you can significantly improve your stock-picking process.

Remember, Finviz is just a tool. It's up to you to use it effectively and conduct thorough research before making any investment decisions. Now, go out there and start screening! The next winning stock might be just a few clicks away.