Not all stocks are created equal, and finding the best ones requires effective screening and analysis. Our powerful screener simplifies this task by filtering massive amounts of data to identify stocks that meet your specific needs based on financial data, valuation, analyst estimates, and performance indicators. In this article, you’ll learn how to create a custom screening tool to find the best stocks in any sector.
What you need in a sorter
- Wide range of data: Access to data across global stocks, such as prices, financials, valuation ratios and consensus estimates, helps you compare and select the best stocks based on reliable information.
- Customizable filters and sorting: Filtering and sorting stocks by specific criteria – such as sector, market capitalization, or performance metrics – makes the screening process more focused and effective.
- Tool integration: Seamless integration with watchlists, charts, or portfolio analysis tools helps you quickly move from screening stocks to analyzing them in depth.
- User-friendly design: Even with the advanced features, the screener should be easy to use for both novice and experienced investors.
To set up an effective scan tool, you need a tool like Koyfin that meets all of these criteria. Here’s a step-by-step guide on how to set up your scanning device with Koyfin.
About Quivin
Koyfin is a financial data and analytics platform trusted by over 500,000 investors. It offers a global stock screener with over 500 customizable metrics, covering fundamentals, technicals, performance and analyst estimates. Users can create, save and download scan templates and watchlists for seamless analysis. In addition to screening, Koyfin provides extensive coverage of stocks, financial data, text, files, model portfolios, charts, macro data, and custom dashboards. Register for free.
How to create your own sorter
First, you’ll need to set up a Koyfin account, which you can do here (No credit card needed). Once you’ve registered and logged in, we’ll be ready to get started.
Start your scanner
Click here To start. You’ll see many pre-made templates, but let’s create a custom template from scratch. Press “+Create a new screen’ button.
Step 1: “Define Your Stock Universe”
- Trading area: Select a trading region or multiple regions, such as the United States, Canada, Europe, or other global markets.
- Basic security: Set to “Yes” to focus on the main menus for each stock.
- “Industry” standards: Choose “Textiles, Apparel and Luxury Goods” or any other sector you want to focus on.
- “Description” criteria: Identify any keywords that should be matched in the description, such as “shoes.”
- Additional criteria: Select the country, exchange or sector if necessary.
Step 2: “Filter results by the following criteria” to select Financials
- Market value ($500 million – $50 billion): Target mid-cap to large-cap stocks.
- EBIT > 0: Liquidation of unprofitable companies.
- Net income compound annual growth rate (5 fiscal years) > 0%: This looks at the 5-year compound annual growth rate of net income (CAGR) to identify companies that have achieved consistent earnings growth over the past five years.
- Year-on-Year Revenue Estimates % (FY19) > 10%: Focus on companies whose revenues are expected to grow at least 10% in the next fiscal year (FY1). Use FY2 for the following year.
- Profitability Multiplier (NTM) < 30: It ensures that the stock is not overvalued compared to its earnings expectations.
- Loss/EBITDA (FY1 estimate) less than 15: It targets companies that are potentially undervalued relative to their earnings.
- Current ratio (FQ) > 1.5: Ensuring companies’ ability to cover short-term obligations.
- Quick ratio (FQ) > 1: More liquidity guarantee.
- Analyst ratings (average) > 4: Include stocks with positive analyst ratings on the sell side. 5 is the highest rating.
Create a screen
When you’re finished with your criteria, name it and press “”Create a screen‘.
Customize your sorting device
- Columns: Add columns like Next Earnings Day, Free Cash Flow, EBITDA Margin Ratio, and featured charts or choose what you need from thousands of data points to get a comprehensive view of these companies.
- summary: Add an average summary row because it can be more informative than averages in some cases. Right-click on any summary number to hide individual summaries if necessary.
- type: Apply descending sorting by EBITDA margin ratio to prioritize companies based on operating profitability.
Integration sorting
Save your screening tool as a watchlist for cross-platform tracking and analysis.
Take your scanning device to the next level
Start using Koyfin Screener to explore more than just stocks. With over 6,000 filters, you can find the perfect ETF or mutual funds that match your investment criteria. The Koyfin platform allows you to seamlessly integrate these selections into tools like earnings calendars, charts, market scatter charts, and personalized watchlist news feeds, putting all the data you need at your fingertips. Start your screening journey today and discover the possibilities.
Our view is derived solely from historical information and analyst forecasts, using an unbiased approach. Please note that our articles do not serve as financial guidance.
