Stock Screening Methods
Screening for stocks with price-to-sales or price-to-book-value ratio that is low relative to its industry average.
Screen for stocks that sell at low price to earnings ratio. This is one of the most popular methods of stock screening.
Select stocks based on market capitalization (price x shares outstanding). Market capitalization is one of the variables that explain stock performance.
Screen for stocks with high revenue and earnings growth and sequential acceleration.
Selecting stocks with price movement, commonly referred to as "momentum" investing. In its purest form, momentum investing is a technical approach that relies on measures such as relative strength, price breakout, and moving averages.