Step-by-Step Guide To Using Finviz Stock Screener For Free

Finviz.com is a powerful, web-based platform that offers a wealth of information for stock market enthusiasts. From news and charts to insider trading data, it’s a fantastic resource. But its most valuable feature, especially for beginners, is its robust stock screener, and the best part? You can access a significant portion of its functionality completely free. This guide will walk you through how to use the free version of the Finviz stock screener to find potential investment opportunities.

Whether you're looking for value stocks, growth stocks, or something in between, Finviz can help you narrow down the vast universe of publicly traded companies to a manageable list that fits your specific criteria. Let's dive in and unlock the power of this free tool.

1. Accessing the Finviz Stock Screener

First things first, head over to Finviz.com. No need to create an account to use the free screener. Simply navigate to the "Screener" tab located in the top navigation bar. Clicking on it will take you directly to the stock screener interface.

2. Understanding the Screener Interface

The screener interface is divided into three main tabs:

  • Descriptive: This tab allows you to filter stocks based on basic information like sector, industry, country, market capitalization, and average volume.
  • Fundamental: This is where you can screen based on financial metrics like price-to-earnings ratio (P/E), price-to-sales ratio (P/S), earnings per share (EPS) growth, dividend yield, and debt-to-equity ratio.
  • Technical: This tab focuses on technical indicators such as moving averages, relative strength index (RSI), MACD, and chart patterns.

Familiarize yourself with each tab. You'll be using them in combination to refine your stock search.

3. Defining Your Screening Criteria

This is the most crucial step. Before you start clicking around, take some time to define what you're looking for in a stock. What are your investment goals? Are you seeking value, growth, or income? What is your risk tolerance?

For example, let's say you're looking for large-cap companies with strong growth potential and a reasonable valuation. Here’s how you might approach it:

4. Using the Descriptive Tab

  • Market Cap: Select "Large" (typically $10 billion and above). This narrows your search to established companies.
  • Country: Choose "USA" if you want to focus on US-based companies.
  • Average Volume: Set a minimum average volume (e.g., "Over 500K"). This ensures the stock is liquid and easily tradable.

5. Using the Fundamental Tab

  • P/E Ratio: Set a maximum P/E ratio (e.g., "Under 25"). This helps identify companies that are relatively undervalued compared to their earnings.
  • EPS Growth Next 5 Years: Set a minimum EPS growth (e.g., "Over 10%"). This identifies companies with strong projected earnings growth.
  • Debt/Equity Ratio: Set a maximum Debt/Equity Ratio (e.g., "Under 1"). This helps to identify companies with relatively low debt.

6. Using the Technical Tab (Optional)

While not always necessary, the Technical tab can help you further refine your search based on technical indicators. For example:

  • SMA20: You could set this to "Price above SMA20" to find stocks trading above their 20-day simple moving average, suggesting an upward trend.

7. Applying and Refining Your Filters

As you select your criteria, the results table below the tabs will automatically update. Pay attention to the number of stocks that match your criteria. If the list is too long, consider tightening your filters. If the list is too short (or empty), loosen your filters.

8. Analyzing the Results

Once you have a manageable list of stocks, it's time to analyze the results. The table provides a wealth of information, including:

  • Ticker: The stock's ticker symbol.
  • Company: The company's name.
  • Sector: The sector the company belongs to.
  • Industry: The industry the company belongs to.
  • Country: The company's country of origin.
  • Market Cap: The company's market capitalization.
  • P/E: The company's price-to-earnings ratio.
  • EPS (ttm): The company's earnings per share (trailing twelve months).
  • Dividend Yield: The company's dividend yield (if applicable).

Click on a ticker symbol to access a detailed stock quote page with charts, news, financial statements, and more.

9. Saving Your Screens (Workaround for Free Users)

Unfortunately, the free version of Finviz doesn't allow you to save your custom screens. However, you can work around this limitation by:

  • Taking screenshots: Capture screenshots of your filter settings for future reference.
  • Documenting your criteria: Create a document (e.g., a spreadsheet or text file) listing your specific screening criteria. This allows you to easily recreate your screen later.

10. Important Considerations and Limitations

  • Data Delays: The free version of Finviz provides data with a slight delay (typically 15 minutes). This is usually not a major issue for long-term investors, but day traders should be aware of this limitation.
  • Limited Data: While the free version offers a lot, the Finviz Elite subscription unlocks even more data and features, such as real-time data, advanced charting tools, and backtesting capabilities. Consider upgrading if you need these features.
  • Do Your Own Research: The Finviz stock screener is a powerful tool, but it's not a substitute for thorough research. Always conduct your own due diligence before investing in any stock. Read company reports, analyze financial statements, and consider the company's competitive landscape.

Example Scenario: Finding Dividend Stocks

Let's say you're interested in finding dividend-paying stocks. You might use the following criteria:

  • Descriptive: Market Cap: Mid ($2 Billion to $10 Billion) or Large (Over $10 Billion)
  • Fundamental: Dividend Yield: Over 3%
  • Fundamental: Payout Ratio: Under 70% (to ensure dividend sustainability)

This screen will identify companies with a solid market cap, a decent dividend yield, and a sustainable payout ratio.

Conclusion

The Finviz stock screener is an invaluable tool for investors of all levels. By following these steps, you can leverage the power of this free resource to identify potential investment opportunities that align with your specific goals and risk tolerance. Remember to always do your own research and never rely solely on the results of a stock screener. Happy investing!