Stock Screener - Parallax API

Master systematic opportunity discovery. This comprehensive guide teaches you how to use Parallax’s advanced stock screener effectively, from basic filtering to sophisticated institutional-grade screening strategies. The screener combines traditional fundamental analysis with proprietary factor scoring, enabling you to discover investment opportunities that align with your specific investment philosophy and risk parameters.

Getting Started with Stock Screening

Understanding the Screener Interface

Panel	Features
Filter Panel (Left)	Basic filters, factor scores, fundamental metrics, technical indicators, custom filters
Results Panel (Center)	Real-time results list, customizable columns, sorting options, action buttons
Detail Panel (Right)	Individual stock analysis, factor breakdown, peer comparison, integration options

Your First Screen: Step-by-Step

Define Your Investment Universe

Start with broad parameters:

Market Cap: All (or specify Large/Mid/Small cap preference)
Geography: US (expand internationally as you get comfortable)
Sectors: All (or focus on sectors you understand)
Minimum Volume: 100,000 shares/day (ensures liquidity)

Apply Basic Factor Criteria

Begin with simple factor requirements:

Overall Parallax Score: > 6 (above average quality)
Quality Factor: > 5 (basic quality threshold)
Value OR Momentum: > 6 (choose based on market conditions)

Review and Refine Results

Review the number of results (aim for 20-100 for detailed analysis)
If too few results: Lower factor thresholds or expand universe
If too many results: Tighten criteria or add additional filters

Analyze Top Candidates

Sort by Overall Parallax Score or your preferred metric
Review top 10-20 results in detail
Click individual stocks for comprehensive analysis

Advanced Screening Strategies

Factor-Based Screening Approaches

High-Quality Growth
Deep Value
Defensive Income

Investment Thesis: Find high-quality companies with strong growth prospects

Criteria	Value
Quality Factor	> 8
Momentum Factor	> 7
ROE	> 15%
Revenue Growth (3Y)	> 12%
Debt/Equity	< 0.5
Market Cap	> $2B

Typical Results: 15-30 stocks | Review Frequency: Monthly | Best For: Growth-friendly environments

Investment Thesis: Undervalued companies with solid fundamentals

Criteria	Value
Value Factor	> 8
Quality Factor	> 5 (avoid value traps)
P/E Ratio	< 15
P/B Ratio	< 2.5
ROE	> 8%
Debt/Equity	< 1.0

Typical Results: 25-50 stocks | Review Frequency: Quarterly | Best For: Market recovery, rising rates

Investment Thesis: Stable companies providing consistent income

Criteria	Value
Defensive Factor	> 7
Quality Factor	> 6
Dividend Yield	2-6%
Dividend Growth (5Y)	> 3%
Payout Ratio	< 70%
Beta	< 1.2

Typical Results: 30-60 stocks | Review Frequency: Semi-annually | Best For: Market uncertainty

Multi-Factor Combinations

Balanced Factor Approach:

Investment Thesis: Well-rounded companies across multiple factors
Screening Criteria:
  Overall Parallax Score: > 7
  No factor score below 4 (avoid major weaknesses)
  At least two factors > 7 (ensure strengths)
  Market Cap: $1B - $50B (mid-to-large cap sweet spot)

Typical Results: 40-80 stocks
Best For: Most market environments (all-weather approach)

Momentum + Quality Screening:

Investment Thesis: High-quality companies riding positive trends
Screening Criteria:
  Quality Factor: > 7
  Momentum Factor: > 7
  6M Price Return: > 10%
  Earnings Revisions: Positive trend
  ROA: > 8%
  Interest Coverage: > 3x

Typical Results: 20-40 stocks
Best For: Bull markets, earnings upgrade cycles

Sector-Specific Screening

Technology Sector

Tech-Specific Criteria:

Sector: Technology
Quality Factor: > 6 (higher bar for tech)
Momentum Factor: > 5
Revenue Growth: > 15%
R&D/Revenue: > 8% (innovation focus)
Cash/Debt Ratio: > 1 (balance sheet strength)

Considerations: Focus on sub-sectors (software, semiconductors), consider growth stage, evaluate competitive moats

Healthcare Sector

Healthcare-Specific Criteria:

Sector: Healthcare
Quality Factor: > 7 (regulatory resilience)
Defensive Factor: > 5 (stability requirements)
Operating Margin: > 15%

Considerations: Distinguish between pharma, biotech, and medical devices; consider patent cliffs; evaluate regulatory timelines

International Markets

International Focus:

Geography: Developed International OR Emerging Markets
Market Cap: > $1B (liquidity requirements)
ADR Availability: Yes (US accessibility)
Quality Factor: > 6 (additional due diligence needed)

Regional Tips: European markets—focus on quality/defensive; Asian markets—emphasize growth/momentum; Emerging markets—higher quality thresholds

Small-Cap Opportunities

Small-Cap Specific:

Market Cap: $300M -$ 2B
Quality Factor: > 6 (higher bar for small companies)
Revenue Growth: > 20% (growth requirement)
Analyst Coverage: > 3 analysts
Institutional Ownership: 20-80%
Trading Volume: > 50,000 shares/day

Risk Note: Higher volatility, lower liquidity, greater economic sensitivity

Practical Screening Workflows

Weekly Screening Routine

Day	Focus
Monday	Run broad momentum screen, review weekend news, update watchlists
Wednesday	Check earnings-driven opportunities, review screening alerts, analyze Monday’s candidates
Friday	Export candidates to portfolio builder, review fit with existing portfolio, plan weekend analysis

Market Cycle Adaptations

Early Bull Market

Emphasis: Value and Small-Cap factors

Value Factor: > 7
Size Factor: > 5 (small-cap tilt)
Beta: 1.2 - 1.8 (cyclical exposure)

Mid-Bull Market

Emphasis: Quality and Growth factors

Quality Factor: > 8
Momentum Factor: > 6
Revenue Growth: > 15%

Late Bull Market

Emphasis: Defensive and Quality factors

Defensive Factor: > 7
Quality Factor: > 8
Volatility: Below market average

Bear Market

Emphasis: Defensive and Value factors

Defensive Factor: > 8
Quality Factor: > 7
Debt/Equity: < 0.3

Integration with Platform Features

From Screener to Portfolio

Workflow Example:

Screen: Find high-quality dividend stocks
Export: Send top 20 results to portfolio builder
Build: Create optimized dividend portfolio
Analyze: Upload to analyzer for comprehensive review
Implement: Execute trades based on analysis

Using Chat for Screening Enhancement

AI-Assisted Screening:

Chat Query: "What screening criteria should I use to find technology
companies that could benefit from the current AI trend?"

AI Response: Suggests specific factors, metrics, and sub-sector focus
Follow-up: Apply suggested criteria in screener
Validation: Discuss results with AI for refinement

Watchlist Integration

Systematic Monitoring:

Create Themed Watchlists: Group screened stocks by strategy
Set Factor Alerts: Monitor when stocks meet/fail screening criteria
Performance Tracking: Track how screened stocks perform over time
Rebalancing Signals: Identify when holdings no longer meet criteria

Screening Best Practices

Avoiding Common Pitfalls

Over-Optimization: Don’t create overly complex screens that produce few results. Focus on 3-5 key criteria rather than 15-20 filters.Neglecting Qualitative Factors: Use screening as a starting point, not the final decision. Consider management quality, competitive position, and industry trends.Ignoring Market Conditions: Adapt screening criteria to current market environment. Understand which factors work in different market cycles.Poor Risk Management: Consider position sizing and portfolio impact. Don’t ignore correlation risk among screened stocks.

Optimization Techniques

Technique	Description
Backtesting	Test historical performance of screening criteria; optimize for risk-adjusted returns
Dynamic Screening	Adjust factor weightings based on market conditions; use economic indicators
Portfolio Context	Consider existing portfolio when screening; screen for stocks that improve factor balance

Advanced Screening Applications

Event-Driven Screening

Pre-Earnings Screen:

Momentum Factor: > 6
Earnings Revisions: Positive
Short Interest: < 5% (avoid squeeze risk)
Options Volume: Above average (anticipation)

M&A Target Screen:

Value Factor: > 7 (attractive valuations)
Quality Factor: > 6 (strategic assets)
Market Cap: $500M - $10B (typical target size)
Institutional Ownership: > 50%
Recent Performance: Lagging sector (opportunity)

Thematic Screening

ESG-Focused Screen:

ESG Score: > 7
Quality Factor: > 6
Revenue from Sustainable Sources: > 50%
Carbon Footprint: Below industry average
Governance Score: > 8

Inflation Protection Screen:

Sectors: Energy, Materials, Real Estate
Pricing Power: Strong
Historical Inflation Correlation: Positive
Dividend Growth: > Inflation rate

Troubleshooting

Issue	Possible Causes	Solutions
Too Few Results	Criteria too restrictive, unfavorable market conditions	Lower factor thresholds, expand geographic/sector universe
Too Many Results	Criteria too broad, bull market conditions	Add quality filters, tighten factor requirements
Poor Performance	Market regime change, over-fitted criteria	Adapt to current conditions, simplify criteria

Next Steps

Developing Screening Expertise

Week 1-2: Master basic screening with single-factor approaches
Week 3-4: Combine multiple factors and understand interactions
Month 2: Develop sector-specific and market condition adaptations
Month 3: Create systematic screening processes and workflows

AI Portfolio Builder: Build portfolios from screening results
Portfolio Analyzer: Analyze screened stock portfolios
Factor Implementation: Master factor-based screening and scoring methodology

​Getting Started with Stock Screening

​Understanding the Screener Interface

​Your First Screen: Step-by-Step

​Advanced Screening Strategies

​Factor-Based Screening Approaches

​Multi-Factor Combinations

​Sector-Specific Screening

​Practical Screening Workflows

​Weekly Screening Routine

​Market Cycle Adaptations

Early Bull Market

Mid-Bull Market

Late Bull Market

Bear Market

​Integration with Platform Features

​From Screener to Portfolio

​Using Chat for Screening Enhancement

​Watchlist Integration

​Screening Best Practices

​Avoiding Common Pitfalls

​Optimization Techniques

​Advanced Screening Applications

​Event-Driven Screening

​Thematic Screening

​Troubleshooting

​Next Steps

​Developing Screening Expertise

​Related Guides