Stock Screeners for finding Money Making Ideas

Discover 5 powerful screeners to identify top-performing stocks that deliver strong, consistent growth with attractive valuations and promising outlooks.

These screeners help us identify stocks that align with our investment strategy focusing on growth, quality of growth, valuations, outlook, and consistency in performance.

Here are some notes on using these screeners:

1. Adjust the thresholds: The numeric values in these screeners (e.g., growth rates, ratios) can be adjusted based on your risk tolerance and the current market environment.

2. Combine screeners: You can use these screeners in combination to find stocks that meet multiple criteria simultaneously.

3. Industry-specific adjustments: Some metrics may need to be adjusted for specific industries. For example, P/B ratios for financial companies often differ from those in other sectors.

4. Market cap consideration: You might want to add market capitalization filters to focus on specific company sizes (e.g., large-cap, mid-cap, small-cap).

5. Liquidity filters: Consider adding average daily trading volume filters to ensure sufficient liquidity.

6. Data quality: Ensure you're using reliable and up-to-date financial data sources for these screeners.

7. Regular review: Market conditions and company performances change over time, so it's important to regularly review and adjust your screeners.

1. Growth Screener

• Revenue Growth Rate (5-year CAGR) > 10%

• Earnings Per Share (EPS) Growth Rate (5-year CAGR) > 15%

• Operating Margin (Current Year) > Operating Margin (5-year Average)

• Current Gross Margin > 5-year Average Gross Margin

• Current Operating Margin > 5-year Average Operating Margin

• Current Net Profit Margin > 5-year Average Net Profit Margin

2. Quality of Growth Screener

• Free Cash Flow Growth Rate (3-year CAGR) > 10%

• Return on Equity (ROE) > 15%

• Return on Capital Employed (ROCE) > 12%

• Return on Assets (ROA) > 5%

3. Valuation Screener

• Forward P/E Ratio < Industry Average

• P/B Ratio < 3

• Free Cash Flow Yield > 5%

4. Consistency Screener

• Positive Revenue Growth in 4 out of the last 5 years

• Positive EPS Growth in 4 out of the last 5 years

• Operating Margin has increased in 3 out of the last 5 years

5. Outlook-Adjusted Screener

• Top-line Growth Estimates (Next 5 Years) > 10%

• Bottom-line Growth Estimates (Next 5 Years) > 10%

• Top-line Growth Estimates (Next 5 Years) < Bottom-line Growth Estimates (Next 5 Years)

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