How To Create Custom Stock Filters

Creating a custom stock screener on Investing.com is a straightforward process that allows investors to filter stocks based on specific criteria. Here’s a step-by-step guide to get you started.

To start using the Investing.com Stock Screener, click on the dropdown menu available for any metric – let’s use Market Cap as an example – and you’ll see a range of easy preset options:

And for virtually every filter (except where this isn’t applicable), you can also set a custom filter. Here’s what’s available for Market Cap: 

After you’ve applied one or more filters, you’ll see how many stocks fulfill those criteria, as well as how many filters you are currently applying in the screener (and under which tabs):

To reset the screener, click “Reset All,” as seen in the top right corner in the above screenshot. And if you wish to remove only some of your filters, click on “Applied Filters,” then hover over the filter you want to remove and click on the trash can:

Finally, if you wish to save a particular set of applied filters, simply click “Save” in the top right corner – and “My Screeners” to view your saved screens.

You can also use Investing.com’s easy pre-defined screeners as a jumping-off point, then customize the screen to your liking. These are available on the right side of the Stock Screener page.

To view the results of the filters you’ve applied, either scroll down or click on the “[number] Stocks Found] link at the top of the screener:

Here, too, you’ll see a number of tabs. The default is Overview, with a great deal of basic information on the company: sector, market cap, exchange, P/E, and so on.

You can pull up a lot more information on the filtered stocks by clicking on any of the other tabs available, as seen above: Insights, Valuation, Returns, Technical, Financials, Growth, or Risk. Or you can design your own tab displaying the data of your choosing by clicking into the Custom tab.

And there are quick filters at the top of the results table: sector, industry, equity type, country, and currency.

Within the results table, as well, you can reorder the stocks by clicking on the column headers. For instance, if you’d like to put the lowest P/E stocks at the top, simply click on the “P/E Ratio” column header twice:

Finally, you can download the table if you wish, via the “Download” link above the table and to the right. Above that is the option to view more or fewer rows of results at once.

While creating a custom stock screener is relatively simple, following best practices can help you maximize the effectiveness of your screener and avoid common pitfalls.

Before you begin customizing your screener, define your investment goals. Are you looking for growth stocks, value stocks, or dividend-paying stocks? Are you investing for a short-term goal or for retirement? Can you stomach volatile stocks or would you rather build a portfolio of slow-but-steady gainers? Your objectives will dictate the filters you choose and how you configure them.

It’s tempting to use multiple filters to refine your search, but too many filters can limit your results or make the screener overly complex. Start with the most critical metrics that align with your investment strategy and add additional filters gradually if needed.

Markets are dynamic, and what works today may not work tomorrow. Regularly review and update your screener to reflect changes in market conditions or shifts in your investment strategy or goals. This ensures that your screener remains relevant and effective.

Once you’ve created a custom screener, test it by running it through historical data or by using it in a simulated portfolio. This will give you insights into how well your screener performs and highlight areas where adjustments may be needed.

Keep yourself informed about new financial metrics, emerging market trends, and changes in the economic environment. Incorporating this knowledge into your screener can enhance its effectiveness and help you stay ahead of the curve.

When creating a custom stock screener, selecting the right financial metrics is crucial. Here are some key metrics to consider:

Market capitalization, or market cap, is the total value of a company’s outstanding shares. You can use market cap to align your investments with your risk tolerance and investment horizon: For instance, large-cap stocks tend to be more stable and less risky, but potentially with less growth opportunity. For small-caps, it’s generally the opposite: higher risk, but also higher potential reward. And mid-caps may offer a balance of both stability and upside potential.

EPS growth measures the growth rate of a company’s earnings per share. This metric is an important one nearly across the board, showcasing a company’s ability to ramp up profitability over time. Consistent EPS growth is often a sign of a stalwart business with potential for future gains.

The P/E ratio is a fundamental metric that compares a company’s stock price to its earnings per share (EPS). P/E can help you determine whether a stock is overvalued relative to earnings – which could point to a growth stock but could also mean the shares are legitimately overpriced – or if it’s potentially an undervalued value stock.

The P/B ratio compares a company’s share price with its book value. It is a useful metric for identifying undervalued stocks, and is particularly popular among deep-value investors. A P/B ratio below 1 may indicate that a stock is trading for less than the value of its assets.

Dividend yield measures the annual dividend payment relative to the stock price. This is key for income-focused investors looking for stocks that provide regular dividend income. A higher dividend yield can be attractive, but it’s crucial to assess the sustainability of the dividend payout as well.

ROE measures a company’s profitability by comparing net income to shareholders’ equity. It is a key indicator of how effectively a company is using shareholder-invested funds to generate profits. High ROE values are often seen in companies with strong management and competitive advantages.

The D/E ratio compares a company’s total debt to its shareholders’ equity, providing insights into a company’s financial leverage and risk. A high D/E ratio may indicate that a company is heavily financed by debt, which generally makes it a riskier investment – especially in economic downturns.

The current ratio measures a company’s ability to pay its short-term debt with its short-term assets. A current ratio below 1.0 may indicate liquidity issues, while a ratio above that level could suggest strong financial stability.

To demonstrate the practical application of these metrics, let’s explore a few examples of effective custom filters that investors might use in different scenarios.

Objective: Identify undervalued stocks with strong fundamentals.

Filters:

• P/E Ratio: Less than 15
• P/B Ratio: Less than 1.5
• Dividend Yield: Greater than 3%
• D/E Ratio: Less than 0.5

This screener is designed to identify value stocks trading at a discount relative to their earnings and book value. The focus on a low D/E ratio helps filter out companies with excessive debt, while the dividend yield ensures that the stocks selected provide income potential.

Objective: Identify companies with strong growth potential.

Filters:

• EPS Growth (5-Year Average): Greater than 10%
• ROE: Greater than 15%
• Market Cap: Greater than $2 billion

This screener targets growth stocks with strong earnings growth and efficient use of equity. The market cap filter focuses the results on larger companies with established track records.

Objective: Identify high-yield dividend stocks with sustainable payouts.

Filters:

• Dividend Yield: Greater than 4%
• Current Ratio: Greater than 1.5
• Market Cap: Greater than $10 billion

This screener aims to find companies that offer attractive dividend yields while maintaining a sustainable payout ratio. The current ratio filter ensures that the companies selected have strong current liquidity, reducing the risk of dividend cuts in the near future. Finally, a focus on large-cap stocks adds an element of stability.

Objective: Identify companies with minimal debt exposure.

Filters:

• D/E Ratio: Less than 0.3
• ROE: Greater than 10%
• EPS Growth (5-Year Average): Positive
• Market Cap: Greater than $5 billion

This screener is designed for conservative investors who prioritize financial stability and low debt levels. The combination of low D/E ratio, positive EPS growth and high ROE highlights companies with strong balance sheets and the ability to grow earnings without relying heavily on debt.

Objective: Identify stocks with high growth potential but also higher risk.

Filters:

• EPS Growth (5-Year Average): Greater than 20%
• EPS Growth (1-Year Forecast): Greater than 50%
• Market Cap: Small-Cap ($300 million to $2 billion)
• Beta (Volatility): Greater than 1.5

This screener focuses on small-cap stocks that have substantial EPS growth potential but also high volatility, meaning large price swings in both directions. This approach is suitable for investors who are comfortable with the potential for significant gains or losses and who have a higher risk tolerance in pursuit of outsize returns.

Investing.com’s Stock Screener is a versatile tool that allows you to easily tailor your stock-picking process to your specific financial goals and strategies. By creating custom filters for key metrics, you can substantially narrow down potential stock choices, enhancing your ability to build a powerhouse investment portfolio regardless of your investment style or experience level.