Stock Screener

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DEFINITION of 'Stock Screener'

A tool that investors and traders can use to filter stocks based on user-defined metrics. Stock screeners are offered on many websites and trading platforms, and they allow users to select trading instruments that fit a certain profile set of criteria. For example, users are able to screen for stocks by data including price, market capitalization, P/E ratio, dividend yield and 52-week price change percentage, average volume and average five-year return on investment (ROI). Some trading platforms and software allow users to screen using technical indicator data. For example, one could filter for stocks that are trading above their 200-day moving average or whose Relative Strength Index (RSI) values are between a specified range.

INVESTOPEDIA EXPLAINS 'Stock Screener'

Investors can find trading instruments that meet a specified set of criteria by using a stock screening tool. Investors use screeners to find stocks that are poised to perform well over time. Active traders may use stock screening tools to find high probability set-ups for short-term positions. Users can enter a varying number of filters; as more filters are applied, fewer stocks will be displayed on the screener. Stock screeners allow investors and traders to analyze hundreds of stocks in a short period of time, making it possible to weed out those stocks that don't meet the user's requirements and focus on the instruments that are within the user-defined metrics.

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RELATED FAQS
  1. What are the main differences between Yahoo! Stocks Screener and Google Stock Screener?

    Google Finance and Yahoo Finance each offer a free stock screener through their respective search-engine interfaces. The ... Read Full Answer >>
  2. What is the average price-to-earnings ratio in the Internet sector?

    The average price to earnings varies significantly within the Internet sector but, as of 2015, the current industry average ... Read Full Answer >>
  3. What is the difference between technical analysis and fundamental analysis?

    Fundamental analysis and technical analysis are distinct methods used to research and evaluate securities. Fundamental analysis ... Read Full Answer >>
  4. Why is the price to sales ratio commonly used for comparing companies in the Internet ...

    The price to sales (P/S) ratio is used for comparing companies in the Internet sector because it is the most meaningful measure ... Read Full Answer >>
  5. How did the stock market operate prior to the Securities and Exchange Commission?

    The first American stock markets were established in Philadelphia in 1790 and New York in 1792. Trading was largely dominated ... Read Full Answer >>
  6. Why would a company issue preference shares instead of common shares?

    Preference shares, or preferred stock, act as a hybrid between common shares and bond issues. As with any produced good or ... Read Full Answer >>
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