In 2024, using a stock screener to identify winning stocks has become more critical than ever for investors. Stock screeners allow you to filter stocks based on specific metrics, helping you quickly identify opportunities. Here are the most important metrics you should include when using a stock screener in 2024:
Price-to-Earnings (P/E) Ratio
The P/E ratio compares a company’s stock price to its earnings per share (EPS). It is one of the most popular metrics to assess whether a stock is overvalued or undervalued. A low P/E ratio can signal a bargain, while a high P/E ratio could indicate that a stock is overvalued.
Price-to-Book (P/B) Ratio
The P/B ratio compares a company’s market price to its book value. This is essential for finding stocks that are undervalued in relation to their assets. A P/B ratio under 1 often signals that a stock is trading below the value of its assets.
Dividend Yield
For income-focused investors, dividend yield is crucial. It shows the percentage return from dividends relative to the stock price. Stocks with high dividend yields are attractive for generating regular income and can be a sign of strong financial stability.
Debt-to-Equity (D/E) Ratio
The D/E ratio measures a company’s leverage by comparing its total debt to shareholders' equity. A low D/E ratio is often a sign of financial health, indicating that the company isn’t overly reliant on debt.
Earnings Per Share (EPS) Growth
EPS growth shows how a company’s profits are growing over time. This metric is vital for identifying companies with strong growth potential. Positive earnings growth can be a good indicator of future stock price appreciation.
Conclusion
When creating a stock screener in 2024, including the right metrics is essential for success. P/E ratio, P/B ratio, dividend yield, D/E ratio, and EPS growth are the most critical factors to help you filter for strong stocks. By utilizing these metrics, you can make informed investment decisions and uncover hidden opportunities in the market.
