This tag collects all articles that cover stock screening — the art of finding the stocks you want using quantitative criteria.

November 9, 2017

Run Backtests in the Background with Recent Backtests

Highlighting Recent Backtests

Even with advanced caching methods and multiple speed upgrades, highly complex screeners still take some time to run over the past 20 years. To combat the wait time – and allow you more freedom to analyze strategies and their underlying companies – we built the “Recent Backtest” section. This section will enable you to take screeners that may have a long runtime and send them to the background, thus, allowing you to move freely throughout the platform while you wait.

To send a screen to the recent backtest tab, you first need to run the test. While it is running, select “run in background”; once clicked, the above prompt will pop up.…

November 2, 2017

Ranking the Growth of Free Cash Flow and Finding the Leaders

Intuitively, most investors would assume that consistent growth in free cash flow within a company, would result in a high performing stock. Well today we’re going to test out that theory with the “Free Cash Flow Growth Leaders Stock Screener”. With this screener, we’re looking for:

· Large and stable companies; companies that have a market cap over a billion dollars sectioned off into their respective sectors.

· Companies that rank in the top 15% of their sectors for free cash flow growth over the last trading year as long as their FCF is greater than 0.

We plotted two extra variables, capital expenditures and sales growth.…

October 26, 2017

Investment Green Flags – Decreasing Shares Outstanding

Share Buyback Programs

A company purchasing back its shares tends to increase the stock price for a couple of reasons. First, it shows that the firm and its employees are confident in the direction the company is heading, and second, it cuts down on the shares available for investors to purchase purchasing the price up through basic supply and demand.

Below, we’ve outlined one of our green flag indicators “Decreasing Shares Outstanding” which can be found within our Green Flags Score.

Like all green flags, we want to keep this to be as simple as possible. We are building a piece of a larger score, not an entire screener.…

October 19, 2017

What is your definition of “high dividend?”

How high are “high” dividend stocks?

As the markets continue to lack volatility, a number of investors are attempting to find opportunities outside of the traditional growth stocks. This leads many of them to alternatives such as forex, options, etc. However, some investors are still attempting to find gains in the equity markets, and a number of them are doing so through looking for companies with exceptionally high dividend yields. I have a little experience in dividend investing, but not enough to give my thoughts on the matter without running a few tests.

Above we have created a simple stock screener that ranks all companies in the market based on their dividend yield and returns the top 25% of them.…

September 28, 2017

Investment Red Flags – Close < 2

Sharing a lot of characteristics with the “Ultra Low Market Cap” red flag, looking for companies with a close of less than 2 gives you a number of companies whose market cap ranges from Micro to Small. These companies tend to have extremely poor fundamentals and also have a high probability of causing negative returns in your portfolio.

For this flag, we collect all companies who have a close of less than two at the time of screening. Now, a lot of marketers sell you the idea that you can make your fortune on these low priced stocks and in some cases that are true.…

September 14, 2017

Investment Green Flags – Increasing Sales and High Asset Turnover

Revenue Growth and High Asset Turnover

 

When it comes to finding green flags, sometimes the simplest idea is the best. In the case of our flag – Revenue Growth and High Asset Turnover – we look for just that. It’s pretty self-explanatory that if a company is bringing in more money and is selling products faster than anyone else, it will likely increase in price long-term.

In this flag, we’ve kept it fairly simple by looking for the following –

  • Within the past trading year, the total revenues must be larger than they were a year ago. This must be true for all points throughout the year.
September 7, 2017

Investment Red Flags – Bad Beneish Score

How negatively does a bad Beneish score affect your portfolio?

 

With all of the recent articles regarding red and green flags, I realized I should begin writing articles on the flags within the score. One such flag, the bad Beneish score, is a key component of the red flags score.

The line item, “Bad Beneish Score” within the red flags score is calculated by using the above editor.

  • The Beneish M Score over the trailing 12 months (The most recent calculation) must be greater than 0.
  • The Beneish M Score over this past year (Two quarters behind the T12M calculation) must also be greater than 0.
August 15, 2017

Learning about Green Flags and their score

Green Flags

Now that we’ve gone over red flags, it’s time to look at the other side of the equation and learn about green flags.

In our previous article, we discussed that red flags don’t necessarily mean that an investment is going to lose money. Green Flags are the polar opposite from a red flag, but it still doesn’t guarantee anything. A company could have every green flag raised and still lose money over the time you hold it. However, green flags do indicate that a company is less likely to be a dud and increase your chances of long term success.…

August 10, 2017

Guys, you’re being too selective with your screener

It isn’t uncommon for one of our users to call us up and ask for help. To be honest, there have even been times when I will help a client at their site to get them up and running. In the past two years of working in this industry, I have noticed one major theme among every person(myself included) when it comes to screening for potential investments – we are all far too selective.

What do I mean by that?

Well, when we go in to start building a screen we all have the idea of the “perfect” company. This shrunken world view is just our individual preferences, but it can minimize our potential to make good investments.…

August 5, 2017

Can’t Compare Split Adjusted Prices

If you have been using the Equities Lab system in recent weeks, you may have seen a new error that hadn’t appeared before.

———————————

Stock Server Error:Server Error:Cannot compare split ajusted quantities to constants: greater(Close, 444)

Don’t worry! This error message doesn’t mean that the system is down; it simply tells you that there is a split adjusted value in a place it shouldn’t be.

Have you ever input the following line into a screener?

If you have, you’ll need to change that to the following –

What’s the difference?

  • Close
    • This is the split-adjusted value. When a company undergoes a stock split the value of stock changes, typically by half, and the number of available shares doubles.