> ## Documentation Index
> Fetch the complete documentation index at: https://docs.chicago.global/llms.txt
> Use this file to discover all available pages before exploring further.

# Stock Screener

> Complete guide to using the advanced stock screener for systematic opportunity discovery and factor-based investing

**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

<Steps>
  <Step title="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)
  </Step>

  <Step title="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)
  </Step>

  <Step title="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
  </Step>

  <Step title="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
  </Step>
</Steps>

## Advanced Screening Strategies

### Factor-Based Screening Approaches

<Tabs>
  <Tab title="High-Quality Growth">
    **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
  </Tab>

  <Tab title="Deep Value">
    **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
  </Tab>

  <Tab title="Defensive Income">
    **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
  </Tab>
</Tabs>

### 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

<AccordionGroup>
  <Accordion title="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
  </Accordion>

  <Accordion title="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
  </Accordion>

  <Accordion title="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
  </Accordion>

  <Accordion title="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
  </Accordion>
</AccordionGroup>

## 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

<CardGroup cols={2}>
  <Card title="Early Bull Market" icon="arrow-up">
    **Emphasis**: Value and Small-Cap factors

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

  <Card title="Mid-Bull Market" icon="chart-line">
    **Emphasis**: Quality and Growth factors

    * Quality Factor: > 8
    * Momentum Factor: > 6
    * Revenue Growth: > 15%
  </Card>

  <Card title="Late Bull Market" icon="shield">
    **Emphasis**: Defensive and Quality factors

    * Defensive Factor: > 7
    * Quality Factor: > 8
    * Volatility: Below market average
  </Card>

  <Card title="Bear Market" icon="arrow-down">
    **Emphasis**: Defensive and Value factors

    * Defensive Factor: > 8
    * Quality Factor: > 7
    * Debt/Equity: \< 0.3
  </Card>
</CardGroup>

## Integration with Platform Features

### From Screener to Portfolio

**Workflow Example**:

1. **Screen**: Find high-quality dividend stocks
2. **Export**: Send top 20 results to portfolio builder
3. **Build**: Create optimized dividend portfolio
4. **Analyze**: Upload to analyzer for comprehensive review
5. **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**:

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

## Screening Best Practices

### Avoiding Common Pitfalls

<Warning>
  **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.
</Warning>

### 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

### Related Guides

* **[AI Portfolio Builder](/console/builder)**: Build portfolios from screening results
* **[Portfolio Analyzer](/console/analyzer)**: Analyze screened stock portfolios
* **[Factor Implementation](/methodology/factors)**: Master factor-based screening and scoring methodology