Introduction
I’m Howard Reisman the CEO of Stock Rover. In this video we are going to take a brief tour of the fourteen screeners that ship by default in Stock Rover. We will then take a quick look at some of the over 100 additional screeners that are available in the Stock Rover Investor’s Library.
First off, why do screeners matter? Well selecting and running one or more screeners are generally the first steps in any investment research process. Screeners will find a set of candidate investment ideas from a larger investment universe of stocks or ETFs. Screeners screen according to the investment criteria that you care about. They can even rank passing tickers based on the investment factors that matter the most to you.
The fourteen screeners we provide by default cover a variety of investment strategies and approaches.
Here are the screeners that you will see in the Navigation Panel when you first create an account and log into Stock Rover. This set of screeners is by no means fixed. They can be altered or removed, and you can create your own screeners or add them from the Stock Rover Investor’s Library.
There are four general categories that the fourteen screeners can be classified in; Growth, Value, Momentum and Specific Strategies. Let’s dive in and take a look.
Growth Screeners
Five of the fourteen screeners could be classified as growth screeners.
Dividend Growth
The Dividend Growth screener looks for company’s paying a reasonable yield of 1.5% to 3.75% and are growing dividends at least 8% per year over the past 5 years. To ensure the company can afford the dividends it pays, it must also be growing earnings by at least 8% over the last 5 years and sales by 4%. Also it cannot pay out more than 40% of its net income in dividends.
Growth at a Reasonable Price
The Growth at a Reasonable Price screener looks for companies with both EPS and operating income growth north of 15% per year. Ditto for next year’s estimated EPS. Also the 5 year sales growth must exceed 8% per year. The P/E must be under 20 and the trailing and forward PEG’s must be under 1.2.
Large Cap Growth with Momentum
The Large Cap Growth with Momentum screener finds companies with a greater than 5 billion dollar market cap that are exhibiting strong revenue and earnings growth and are still reasonably priced. The companies must also be outperforming its industry and the S&P 500.
Long Term Growth
The Long Term Growth screener works best when the market exhibits the traits of a solid economy, reasonable growth, and low interest rates that may rise slightly in the future. This screener finds mid and large cap companies that are growing, getting more efficient and are not reliant on debt for financing.
Small Cap Growth
The Small Cap Growth screener looks for small companies that are outperforming the S&P 500 and are within 15% of their 52 week high. The companies must be growing both their sales and earnings at a rapid clip. Finally the companies must also have strong Return on Invested Capital performance.
Value Screeners
There are three value screeners; Fair Value, Large Cap Value and Safe Performers.
Fair Value
The Dividend Growth screener looks for company’s paying a reasonable yield of 1.5% to 3.75% and are growing dividends at least 8% per year over the past 5 years. To ensure the company can afford the dividends it pays, it must also be growing earnings by at least 8% over the last 5 years and sales by 4%. Also it cannot pay out more than 40% of its net income in dividends.
Large Cap Value
The Large Cap Value screener finds large companies that are inexpensive by traditional measures such as low price to earnings, price to sales and price to book. These companies should still be growing sales and earnings.
Safe Performers
The Safe Performers screener finds stocks with high institutional ownership, low Beta and good value and quality grades and long term outperformance vs. the S&P 500.
Momentum Screeners
Two of the screeners look for price momentum; They are Relative Strength and Strong Buys.
Relative Strength
The Relative Strength screener find stocks with consistent outperformance vs. the S&P 500 in all periods, ranging from 5 days to 5 years. The longer the period, the more the outperformance must be to pass this screener.
Strong Buys
The Strong Buys screener finds stocks with a high margin of safety that are also in favor with the market as shown by a sentiment score in the top quartile and a recent buy sign from the MACD technical indicator.
Specific Strategy Screeners
There are four screeners that implement a specific strategy; Buffettology Inspired, Capital Efficiency, Piotroski High F-Score and Top Stocks.
Buffettology Inspired
The Buffettology Inspired screener is based on criteria described in the bestselling Buffettology book and mimics Warren Buffett’s investing approach. The screener insists that company should have a 10-year track record of generally increasing Earnings Per Share with no negative earnings years; long-term debt not more than 5 times annual earnings; average Return on Equity over the past ten years at least 15%, average Return on Invested Capital over the last 10 years at least 12%, and earnings yield should be higher than the long term Treasury yield.
Capital Efficiency
The Capital Efficiency screener screens for stocks with strong Return on Invested Capital, Return on Assets and Return on Equity. It also ensures that the company’s Return on Assets and Return on Equity are well above its industry averages. Finally it screens on the famous Novy-Marx quality metric Gross Profits / Total Assets.
Piotroski High F-Score
The Piotroski High F-Score screener uses the 9 criteria that Joseph Piotroski, a professor of accounting at Stanford University developed to decide whether or not a stock had solid financials, and if the financials were getting better. Passing companies must have a perfect score of 9.
Top Stocks
The Top Stocks screener works with mid and large cap companies looking for stocks that pass criteria that one academic study indicated are most effective for future stock outperformance, as determined by back testing multiple strategies. The criteria that mattered are as follows; Enterprise value / EBITDA between 3 and 8. Return on Equity must exceed 18% and Return on Assets must exceed 10%. Finally the stock must exhibit current momentum by ensuring the current price is within 15% of its 52 week high./p>
More Screeners in the Library
There are well over 100 additional screeners in the Stock Rover Investor’s Library that are available to you and can be easily imported into your account. Importing is easy as you can see here. I’ve already switch to the Library and the screener section comes up by default. I will import the ETF low expenses screener, first by searching on ETF and then checking the ETF low expense screener and finally clicking the import button. Now you can see that the ETF low expense screener has been added to my account.
So what does the library contain?
On the ETF side, we have a whole host of ETF screeners that screen for passing ETF candidates across a whole spectrum of criteria, ranging from big cap growth to small cap value. There are international screeners from Asia to emerging markets. You can screen for sustainable ETFs, quality ETFs as well as dividend growth and yield. So see everything available, just put ETF into the library search box.
We have screeners in the library that implement the very popular Investor’s Business Daily CAN SLIM Investment system. We also have screeners that screen on Morningstar Grades.
We have a powerful Stock Rating System within Stock Rover and there are a number of screeners in our library that will allow you to screen based on our ratings. The screeners cover the overall ratings as well as the components ratings such as valuation, efficiency, growth, dividends and momentum.
There are various small, mid and large cap growth and value screeners. There are dividend screeners for growth, yield and safety. There are also a number of momentum screeners. You can also find sector screeners in the library for many of the key sectors such as Tech, Healthcare and Industrials.
Other screeners of interest include Greenblatt’s Magic Formula screeners and O’Shaughnessy’s Cornerstone Growth based on James O’Shaughnessy’s What Works on Wall Street book.
There are many more screeners in the library and they are easy to peruse, just like a regular library, except the Stock Rover library never closes. I encourage you to take a look and see all that Stock Rover offers for this first critical step of finding promising investment candidates.
I hope you found this video useful. I encourage you to explore Stock Rover and see all that is offered as well as check out our other educational videos on our website. Thank you for watching.
