Using Finviz Stock Screener In Canada: A Full Guide

Finviz, short for Financial Visualizations, is a powerful and free (with a premium option) stock screener that's a favorite among traders and investors worldwide. But can Canadians effectively use it to find promising investment opportunities in both Canadian and US markets? The answer is a resounding yes! This guide will walk you through how to leverage Finviz as a Canadian investor to filter, analyze, and discover stocks that align with your investment strategy.

Finviz offers a wealth of data, from fundamental metrics like P/E ratios and dividend yields to technical indicators like moving averages and RSI. The best part? It's all presented in a user-friendly interface. Whether you're a seasoned day trader or a beginner building a long-term portfolio, Finviz can be an invaluable tool in your arsenal. Let's dive into how to make the most of it.

Understanding Finviz's Core Features

Before we get into the specifics of using Finviz in Canada, let's quickly cover its key features:

  • Screener: This is the heart of Finviz. It allows you to filter stocks based on a huge range of criteria.
  • Maps: Visual representations of market performance, sector breakdowns, and more.
  • News: Aggregates news from various sources, keeping you informed about market events.
  • Portfolio: Track your holdings and monitor their performance. (Note: Privacy concerns exist with entering your actual holdings into any free online tool. Use with caution or consider a paper portfolio.)
  • Groups: Provides sector and industry performance analysis.
  • Futures: Tracks futures contracts for various commodities and indices.
  • Forex: Offers real-time foreign exchange rates.
  • Crypto: Tracks prices and information on various cryptocurrencies.

For Canadian investors, the screener is the most crucial feature.

Setting Up Your Finviz Screener for Canadian Stocks

The first step is to navigate to the Finviz stock screener (finviz.com/screener.ashx). The default settings will likely show US-listed stocks. Here's how to adapt it for Canadian stocks:

  1. Country: Under the "Descriptive" tab, you'll find a "Country" dropdown menu. Select "Canada." This will filter the results to only show stocks listed on Canadian exchanges, primarily the Toronto Stock Exchange (TSX) and the TSX Venture Exchange.

  2. Exchange: For more specific filtering, you can use the "Exchange" dropdown. This allows you to choose between the AMEX, NASDAQ, NYSE, or TSX. Select "TSX" to focus solely on stocks listed on the Toronto Stock Exchange.

  3. Market Cap: Consider filtering by market capitalization. The TSX includes companies of all sizes. You might want to focus on large-cap stocks (over $10 billion), mid-cap stocks ($2 billion to $10 billion), or small-cap stocks (under $2 billion), depending on your risk tolerance. This option is also found under the "Descriptive" tab.

  4. Industry: If you have a particular industry in mind (e.g., energy, mining, financials), you can select it from the "Industry" dropdown. This is also located under the "Descriptive" tab.

Screening for US-Listed Stocks from Canada

Many Canadian investors also invest in US markets. Here's how to use Finviz to find US-listed stocks:

  1. Country: Under the "Descriptive" tab, select "USA."

  2. Exchange: Choose your preferred exchange: NYSE, NASDAQ, or AMEX.

  3. Industry/Sector: Refine your search by selecting specific industries or sectors.

  4. Fundamental Filters: This is where Finviz really shines. Use the "Fundamental" tab to filter based on metrics like:

    • P/E Ratio: Price-to-earnings ratio. A lower P/E ratio might indicate an undervalued stock (but consider industry averages and company growth).
    • EPS Growth Next Year: Earnings per share growth estimates for the next year.
    • Dividend Yield: The percentage of a company's share price that it pays out as dividends annually.
    • Debt/Equity Ratio: A measure of a company's financial leverage.

  5. Technical Filters: The "Technical" tab allows you to filter based on technical indicators such as:

    • Moving Averages: Filter for stocks trading above or below their 50-day or 200-day moving averages.
    • RSI (Relative Strength Index): Identify potentially overbought (RSI above 70) or oversold (RSI below 30) stocks.
    • Volatility: Filter for stocks with high or low volatility.

Example Screener Setups for Canadian Investors

Here are a couple of example screener setups to get you started:

  • Canadian Dividend Stock Screener:

    • Country: Canada
    • Exchange: TSX
    • Market Cap: Over $2 Billion
    • Dividend Yield: Over 3%
    • Payout Ratio: Under 70% (to ensure dividend sustainability)

  • US Growth Stock Screener:

    • Country: USA
    • Exchange: NASDAQ
    • Market Cap: Over $5 Billion
    • EPS Growth Next Year: Over 15%
    • Price/Earnings to Growth (PEG) Ratio: Under 1.5 (potentially undervalued growth stock)

Beyond the Screener: Using Finviz Maps and News

Don't just rely on the screener. Finviz's maps provide a visual overview of market performance, allowing you to quickly identify strong or weak sectors. The news aggregator keeps you informed about market-moving events that could impact your investments.

  • Finviz Maps: Use the maps to identify sectors that are outperforming or underperforming the market. This can help you focus your research on promising areas.
  • Finviz News: Stay up-to-date on company-specific and market-wide news. Pay attention to earnings announcements, analyst upgrades/downgrades, and major economic events.

Important Considerations for Canadian Investors

  • Currency Conversion: Remember to factor in currency conversion rates when analyzing US-listed stocks. Your Canadian dollar returns will be affected by fluctuations in the CAD/USD exchange rate.
  • Tax Implications: Understand the tax implications of investing in both Canadian and US stocks. Consult with a tax professional for personalized advice.
  • Due Diligence: Finviz is a powerful screening tool, but it's not a substitute for thorough research. Always conduct your own due diligence before investing in any stock. Read company financial statements, analyze industry trends, and consider your own risk tolerance.
  • Data Accuracy: While Finviz is generally reliable, data errors can occur. Double-check information with other sources, especially when making critical investment decisions.

Conclusion: Empowering Your Investment Decisions

Finviz is a valuable resource for Canadian investors looking to find promising stocks in both Canadian and US markets. By understanding its core features, setting up effective screeners, and conducting thorough due diligence, you can leverage Finviz to make more informed and profitable investment decisions. Remember to consider currency fluctuations, tax implications, and always do your own research before investing. Happy screening!