A CAGR calculator is an essential tool for investors looking to analyze stock growth over time. Similarly, using the right stock screener strategies can help investors filter stocks effectively. Whether you are a beginner or an experienced investor, having a structured approach to screening stocks can improve your decision-making. A financial advisor in India often recommends stock screeners to help clients identify potential investment opportunities.
Here are some of the best stock screener strategies for the Indian markets:
1. Growth Screening Using CAGR Calculator
Investors looking for long-term wealth creation often focus on growth stocks. The Compound Annual Growth Rate (CAGR) calculator helps determine the average annual growth of a company’s revenue, earnings, or stock price over time.
Key parameters for growth screening:
- Revenue CAGR – Identifies companies with steady revenue growth.
- Earnings CAGR – Highlights companies with consistent profit expansion.
- Stock Price CAGR – Helps investors assess past stock performance.
Companies with strong historical growth rates often continue to perform well in the long run.
2. Fundamental Screening
Fundamental analysis helps investors identify financially strong companies. Using a stock screener, investors can filter stocks based on:
- Price-to-Earnings (P/E) Ratio – Evaluates stock valuation compared to earnings.
- Return on Equity (ROE) – Measures a company’s profitability.
- Debt-to-Equity Ratio – Assesses financial stability.
A financial advisor in India may recommend stocks with solid fundamentals for long-term investment.
3. Momentum Screening
Momentum investing focuses on stocks that have shown strong recent performance. Traders use this strategy to capitalize on upward trends.
Key indicators:
- Relative Strength Index (RSI) – Identifies overbought or oversold stocks.
- Moving Averages (50-day and 200-day EMA) – Helps track trends.
- Trading Volume – Higher volume confirms trend strength.
This method is useful for short-term traders seeking quick gains.
4. Dividend Screening
For investors looking for passive income, dividend screening helps find companies that consistently pay dividends.
Important parameters:
- Dividend Yield – Measures return from dividends.
- Dividend Payout Ratio – Indicates financial health.
- Five-Year Dividend Growth Rate – Assesses consistency in payouts.
Companies with stable dividends provide steady returns and lower risk.
5. Value Screening
Value investing focuses on identifying undervalued stocks with strong potential.
Key metrics:
- Price-to-Book (P/B) Ratio – Helps find undervalued stocks.
- PEG Ratio (Price/Earnings-to-Growth) – Adjusts valuation based on growth.
- Free Cash Flow (FCF) – Indicates a company’s ability to generate cash.
Investors use this strategy to buy stocks at lower prices and benefit from long-term appreciation.
Conclusion
Stock screeners simplify the process of stock selection. Whether you use a CAGR calculator for growth screening or focus on fundamental, momentum, dividend, or value strategies, having a structured approach is crucial. If you’re unsure, seeking guidance from a financial advisor in India can help align your investments with your financial goals.
By using the right stock screener strategies, investors can make informed decisions and build a strong portfolio in the Indian stock market.
