How to Screen Stock Screening Defined Stock screening is the process of applying numerical criteria to a broad universe of companies. Screening allows you to narrow the universe down to a list of a few stocks with high potential. The Purpose of Screening Screening for stocks is one of many ways to discover new investment ideas. Stock screening is a tool that is highly utilized by investment professionals.
Most people only have the time to research a few companies a week.
With thousands of companies mentioned in newspapers, magazines, and television shows every day, it can be difficult to filter the information and decide which companies to research. Stock screening saves you research time by allowing you to eliminate companies that clearly do not meet your objectives. While it is a highly useful tool, there are no magical screens. It is important to understand that while screening is a great place to start looking for stocks picks, further research should be done before making a buy or sell decision. The Process Stock screening is a multistage process, and it is important to spend time carefully analyzing each stage of the process.