finviz

How to Select Stocks for Trading: Working with Finviz. Part 1

12 February 2025

How to Select Stocks for Trading: Working with Finviz. Part 1

One of the most important prerequisites for profitable trading is a stock selection algorithm. The result of this selection should be a list of stocks chosen according to specific criteria. These criteria must align with a particular trading strategy and help the trader achieve their ultimate goal—profit from executed trades.

You can select stocks for trading on various platforms. One of the most popular and user-friendly ones is FINVIZ. It is a stock screener (from the English word "screener," meaning to sort or filter) that allows traders to quickly compile a list of stocks for further detailed analysis and trading.

In this series of articles on stock selection using FINVIZ, we will demonstrate how to use the screener, explain the meaning of different parameters, and how to interpret them. We will also highlight what to focus on when selecting stocks for various purposes and trading strategies.

What Parameters Are Available for Stock Selection in FINVIZ?

Once you visit the finviz.com website and navigate to the “Screener” section, you will see three categories of parameters:

  • Descriptive Parameters
  • Fundamental Parameters
  • Technical Parameters

In this article, we will cover all the Descriptive Parameters available in the FINVIZ screener.

Descriptive Parameters

The Descriptive tab is used to select stocks based on specific general criteria:

  • Exchange — You can select one or more exchanges. The screener will filter stocks traded only on these platforms.
  • Index — You can select an index. The screener will filter stocks included in this index.
  • Sector — You can select one or more sectors. The screener will filter stocks of companies that belong to these sectors.
  • Industry — You can select one or more industries. The screener will filter stocks of companies that belong to these industries.
  • Country — You can select one or more countries. The screener will filter stocks of companies based in these countries.
  • Market Cap. (Market Capitalization) — You can choose a specific market capitalization value. The screener will filter stocks of companies whose market capitalization falls within the selected range (e.g., from $2 billion to $10 billion), is above, or below a certain level.
  • Dividend Yield — You can choose a specific value of dividends paid over the year (as a percentage of market capitalization). The screener will filter stocks of companies whose dividend yield falls within the selected range (e.g., from 2% to 6%) or is above or below a certain percentage (e.g., >0% will filter stocks paying any dividends).
  • Float Short — You can select the percentage of shares in circulation borrowed by traders for short selling. The screener will filter stocks of companies with a short float percentage above, below, or within the specified range.
  • Analyst Recom. (Analyst Recommendations) — You can select a specific value of aggregated analyst recommendations (from 1 to 5, where 1 = strong buy and 5 = strong sell). The screener will filter stocks of companies rated by analysts at the selected values.
  • Option/Short — You can select the availability of options trading or short selling for a stock. The screener will filter stocks based on whether they can be traded as options or shorted, according to the selected criteria.
  • Earnings Date — You can select a time frame for the publication of quarterly reports (read more about quarterly reports here). The screener will filter stocks of companies that have published or plan to publish quarterly reports within the selected period.
  • Average Volume — You can select the average daily volume (measured in the number of shares) over the last three months. The screener will filter stocks of companies with an average volume within the selected range or above or below a specific level.
  • Relative Volume — You can select the relative volume value (current volume/average volume). The screener will filter stocks of companies with a relative trading volume within the selected range, above, or below a specific level.
  • Current Volume — You can select the value of the current trading volume. The screener will filter stocks with a current trading volume within the selected range, above, or below a specific level.
  • Price — You can select the current stock price. The screener will filter stocks of companies with a current price within the selected range, above, or below a specific level.
  • Target Price — You can select a specific relative value of the average analyst price forecast compared to the current price (target price = [(average price forecast/current price - 1) * 100%]). The screener will filter stocks rated by analysts as above or below the current price by a specified percentage.
  • IPO Date — You can select the date of the IPO (read more about IPOs here). The screener will filter stocks that conducted their IPO before a specific selected time point.
  • Shares Outstanding — You can select the number of shares owned by all shareholders (shares outstanding = total shares - shares repurchased by the company). The screener will filter stocks of companies with shares outstanding within the selected range or above or below a specific level.
  • Float (Shares Available for Trading) — You can select the number of shares available for trading (float = shares outstanding - insider shares - shares owned by 5% stakeholders - restricted shares under Rule 144). The screener will filter stocks of companies with a float within the selected range, above, or below a specific level.