Stock Screener

Stock screening is the process of reducing a large investment universe to a manageable candidate list using quantitative filters applied systematically. The purpose is not to replace judgment -- it is to prevent judgment from being exercised on hundreds of irrelevant securities while reserving careful analysis for the subset that passes pre-defined quality, value, and momentum thresholds. A screen that narrows a broad universe to 15 candidates has not made a decision; it has done the first pass of work that would otherwise consume weeks of manual searching. The actual investment decision still requires review of the candidates, an understanding of why each passed, and a judgment about whether the filter criteria captured the right things for the current market environment.

The most common screening mistake is using too many filters simultaneously. Each additional filter restricts the universe and increases the risk that the surviving set is small, idiosyncratic, and sensitive to small changes in filter thresholds -- a phenomenon called overfitting. A screen with fifteen specific criteria will produce a very different output on Monday than on Friday and is more likely capturing noise than signal. The research literature on factor investing is consistently in favor of fewer, better-understood factors applied consistently over time rather than complex multi-criteria rules tuned to recent history. Start with two or three criteria that reflect a coherent investment thesis, understand what those criteria are selecting for, and only add additional filters when there is a clear reason.

Factor-based screens -- filtering by valuation, quality, and momentum simultaneously -- have the strongest evidence base in systematic investing. The combination of durable business evidence, reasonable valuation, and positive momentum captures what practitioners call 'quality at a reasonable price with a catalyst.' Each factor in isolation has periods of poor performance -- Value has extended droughts, Momentum has sharp reversals, Quality can be expensive for long periods -- but the combination tends to be more consistent than any single factor alone.

Sector-level screening adds a useful second dimension. Stocks do not trade in isolation from their sector environment: the best-positioned individual company in a sector with macro headwinds (rising rates for high-duration growth stocks, falling commodity prices for energy producers, regulatory pressure for financials) faces a structural wind that the stock-level screen will not capture. Use sector-level context as a pre-filter or as a qualitative overlay: favor high-scoring stocks in sectors with constructive macro backdrops, and be more selective (require higher individual scores) in sectors facing headwinds.

Helpful context tools: check the Daily Market Regime before running momentum-heavy screens, scan AIQ Momentum Leaders for the daily momentum shortlist, and open AIQ Analysis for factor breakdowns on any individual ticker. If you want a daily summary page, see Top Momentum Stocks Today.

How the AIQ Screener Works

Traditional screeners are filter engines: set a P/E threshold, a market cap floor, a revenue growth minimum, and see what survives. The problem is that passing a filter tells you nothing about how strong a candidate is within the passing set — a stock with P/E 14 and one with P/E 18 both pass a "P/E below 20" screen, but that screen can't tell you which is better positioned for the next six months.

The AIQ Screener adds strategy-based ranking before you narrow the list. Every covered stock has an AIQ Score across the four composite factors — Momentum, Value, Quality, and Risk Resilience — with SentimentPulse reported separately. When you select a strategy preset, the screener evaluates how well each stock fits that approach, then lets you apply additional filters to focus the results.

For individual stock deep-dives, open AIQ Analysis to see score history, factor breakdown, and active signals.