Stock screens are tools that help investors narrow a list of potential investment candidates to a manageable number for further research.
Most stock screeners are Web-based, meaning they are offered as a service through a Web site.
Many are free, while others offer some basic selections for free, but require a subscription for more robust capabilities.
If you are serious about investing, you should be using a stock screener.
You can find more detailed information about stock screens at this content hub.
However, stock screens can’t tell you everything you need to know about a stock or the company behind it.
Although there are some quantitative measures that show management efficiency, there is no screening factor that adequately assesses the influence of top management.
For example, what is Steve Jobs worth to Apple stockholders? He is widely credited (correctly or incorrectly) as the guiding creative genius.
Screens also can’t predict or measure the impact of social, economic or regulatory changes.
Lawsuits, scandals and other unexpected events may have a serious affect on the stock’s price, but screens won’t tell you in advance.
The lesson is that stock screens are very good at picking out potential investment candidates, but don’t use them to the exclusion of other avenues of investigation or common sense.
