When using a stock screener to filter stocks by market capitalization, you want to first set your desired range for market capitalization. Market capitalization is calculated by multiplying the current stock price by the total number of outstanding shares of a company.
You can typically set a minimum and maximum market capitalization value on the stock screener to narrow down your search. For example, you may want to filter for stocks with a market capitalization between $1 billion and $10 billion.
By setting these parameters, the stock screener will only display stocks that fall within your specified range of market capitalization. This can help you identify companies that match your investment criteria and preferences.
After filtering the stocks by market capitalization, you can further analyze the companies based on other financial metrics, such as earnings growth, valuation ratios, and industry sectors, to make informed investment decisions.
How to sort stocks by market cap on a stock screener?
- Open the stock screener tool on a financial website or platform of your choice.
- Look for the option to filter or sort by market capitalization (market cap). This option is usually found in the "filters" or "advanced settings" section of the stock screener.
- Select "market capitalization" from the list of available filters. You may need to enter a specific range or value for the market cap you are interested in, such as "over $1 billion" or "under $500 million."
- Apply the filter to view the results. The stock screener will now display a list of stocks sorted by market cap, with the largest market cap stocks appearing first.
- You can further refine your search by adding additional filters or criteria, such as sector, industry, or performance metrics, to narrow down the list of stocks that meet your investment criteria.
What is the purpose of filtering stocks by market cap on a stock screener?
Filtering stocks by market cap on a stock screener can serve a couple of purposes:
- Focus: By filtering stocks based on market cap, investors can narrow down their search to only include companies of a certain size. This can help investors focus on the specific type of companies they are interested in, whether it be large-cap, mid-cap, small-cap, or micro-cap companies.
- Risk tolerance: Market cap is often used as a proxy for company size, which can in turn be an indication of risk. Larger companies tend to be more stable and less volatile, while smaller companies can be riskier but potentially offer higher returns. Filtering stocks by market cap can help investors match their portfolio to their risk tolerance.
- Investment strategy: Different investment strategies may favor stocks of certain market caps. For example, growth investors may prefer smaller companies with higher growth potential, while value investors may focus on larger, more established companies trading at a discount. Filtering stocks by market cap can help investors align their stock picks with their investment strategy.
Overall, filtering stocks by market cap can help investors save time and focus on stocks that meet their specific preferences and criteria.
How to find large-cap stocks with a stock screener?
To find large-cap stocks using a stock screener, you can follow these steps:
- Choose a stock screener tool: There are many free and paid stock screener tools available online such as Yahoo Finance, Finviz, TradingView, and others. Choose one that suits your needs and preferences.
- Set the market capitalization filter: In the stock screener tool, set the market capitalization filter to view only large-cap stocks. Market capitalization is the total value of a company's outstanding shares of stock and is a good indicator of company size. Typically, large-cap stocks have a market capitalization of $10 billion or more.
- Select other criteria: You can further refine your search by adding additional criteria such as sector, industry, price-to-earnings ratio, dividend yield, etc. to narrow down your selection of large-cap stocks.
- View the results: Once you have set the parameters in the stock screener, you can view the list of large-cap stocks that meet your criteria. Review the list and conduct further research on individual companies to make informed investment decisions.
- Monitor and track: Keep track of the large-cap stocks you have identified using the stock screener and monitor their performance over time. Regularly review your portfolio and make adjustments as needed based on market conditions and company developments.
How to select market cap criteria for stock screening on a stock screener?
When selecting market cap criteria for stock screening on a stock screener, it is important to consider the following factors:
- Define your investment goals: Determine whether you are looking for large-cap, mid-cap, or small-cap stocks based on your investment objectives and risk tolerance.
- Consider the size of the company: Market cap is calculated by multiplying the number of outstanding shares by the current stock price. Large-cap companies typically have a market cap of over $10 billion, mid-cap companies have a market cap between $2 billion and $10 billion, and small-cap companies have a market cap below $2 billion.
- Evaluate the sector and industry: Different sectors and industries may have different market cap ranges that are considered typical. For example, technology companies tend to have higher market caps compared to consumer goods companies.
- Look at historical performance: Analyze how stocks with different market cap sizes have performed in the past to determine which range may be most suitable for your investment strategy.
- Consider liquidity: Stocks with larger market caps tend to have higher trading volume and liquidity, which can make it easier to buy and sell shares without impacting the price.
Overall, the market cap criteria for stock screening should align with your investment goals, risk tolerance, and investment strategy. It is important to conduct thorough research and analysis before making any investment decisions.
