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Set your criteria and click Screen Stocks to filter the list of major U.S. companies.
Understanding Stock Screening Criteria
Stock screeners help investors narrow down thousands of stocks to a manageable list based on specific financial criteria. By filtering on fundamental metrics, you can quickly find companies that match your investment strategy and risk preferences.
Key Metrics Explained
| Metric | What It Measures | How to Interpret It |
|---|---|---|
| P/E Ratio | Price relative to earnings per share | Lower P/E may indicate undervaluation; higher P/E suggests growth expectations |
| Market Cap | Total value of all outstanding shares | Large-cap ($10B+) is more stable; mega-cap ($200B+) dominates the market |
| Dividend Yield | Annual dividend as a percentage of stock price | Higher yield provides more income; very high yields may signal risk |
| Sector | Industry classification of the company | Different sectors perform well in different economic conditions |
P/E Ratio Ranges by Category
Value stocks: P/E below 15 - may be undervalued or facing challenges
Fair value: P/E between 15-25 - reasonably priced for moderate growth
Growth stocks: P/E above 25 - market expects significant future earnings growth
High growth: P/E above 50 - very aggressive growth expectations priced in
Sector Overview
| Sector | Characteristics | Typical Dividend Yield | Economic Sensitivity |
|---|---|---|---|
| Technology | High growth, innovation-driven | 0-1% | Moderate |
| Healthcare | Defensive, aging population tailwind | 1-4% | Low |
| Finance | Interest rate sensitive, dividends | 1-3% | High |
| Consumer | Mix of staples and discretionary | 1-3% | Mixed |
| Energy | Commodity-driven, cyclical | 2-5% | High |
| Utilities | Stable, regulated, income-focused | 2-4% | Low |
| Telecom | Infrastructure-heavy, dividends | 3-7% | Low |
How to Use a Stock Screener Effectively
Step 1: Define your strategy - Are you looking for growth, income, or value?
Step 2: Set your criteria - Use P/E, yield, and market cap filters to narrow results
Step 3: Review the results - Compare filtered stocks against each other
Step 4: Do deeper research - A screener is a starting point, not a buy signal
Step 5: Consider diversification - Avoid putting all your capital in one sector or stock
Market Capitalization Categories
| Category | Market Cap Range | Risk Level | Example |
|---|---|---|---|
| Mega-Cap | $200B+ | Lower | Apple, Microsoft, NVIDIA |
| Large-Cap | $10B-$200B | Low-Moderate | Most S&P 500 companies |
| Mid-Cap | $2B-$10B | Moderate | Growing companies |
| Small-Cap | $300M-$2B | Higher | Emerging companies |
Common Screening Strategies
Value Screen
P/E under 15, dividend yield above 2%. Finds potentially undervalued companies that pay income. Examples from our dataset: XOM, JPM, BAC, T.
Growth Screen
P/E above 30, market cap above $1T. Identifies large fast-growing companies. Examples from our dataset: AAPL, MSFT, NVDA, AMZN.
Dividend Income Screen
Dividend yield above 2.5%, any P/E. Finds higher-yield income stocks across sectors. Examples: KO, XOM, JNJ, PFE, T.
Blue Chip Screen
Market cap above $250B, P/E under 40. Identifies established market leaders at reasonable valuations. Examples: AAPL, MSFT, JPM, UNH.
Frequently Asked Questions
A stock screener is a tool that filters stocks from a larger universe based on criteria you define, such as P/E ratio, dividend yield, market capitalization, and sector. It helps you quickly identify stocks that match your investment strategy without manually researching thousands of companies. Think of it as a search engine for stocks where you set the parameters and the screener returns matching results.
There is no single good P/E ratio because it depends on the industry and growth expectations. Generally, a P/E below 15 is considered value territory, 15-25 is average, and above 25 indicates growth expectations. Technology companies often have higher P/E ratios (30-60+) because the market expects rapid earnings growth. Utilities and financial companies typically trade at lower P/E ratios (10-18) because they grow more slowly. Always compare a stock's P/E to its sector average and historical range rather than using an absolute number.
No. While dividend yield is important for income investors, an unusually high yield (above 6-7%) can be a warning sign that the market expects the dividend to be cut. This is known as a yield trap. A company may have a high yield because its stock price has dropped significantly due to fundamental problems. Focus on companies with sustainable payout ratios (below 60-70% of earnings), consistent dividend growth history, and strong balance sheets. A moderate yield of 2-4% from a company that grows its dividend annually is often better than a high yield from an unstable company.
Yes, market capitalization is an important factor. Large-cap and mega-cap companies (above $10 billion) tend to be more stable, have stronger balance sheets, and offer more predictable returns. They are generally safer for conservative investors and beginners. Smaller companies can offer higher growth potential but come with greater volatility and risk. Most financial advisors recommend building a portfolio core with large-cap stocks or funds and adding smaller positions in mid-cap or small-cap stocks for growth potential.
No. A stock screener is a starting point for research, not a substitute for thorough analysis. After screening, you should examine the company's financial statements, competitive position, management quality, growth prospects, and valuation relative to peers. Consider reading earnings reports, reviewing analyst estimates, and understanding the business model. Screeners help you narrow the universe of stocks efficiently, but the final investment decision should be based on comprehensive research and alignment with your financial goals and risk tolerance.
