The idea behind this screener
This screener is built for medium-term trading: buy shares you have researched carefully, hold them for roughly three months to two years, and sell when the story changes or the price hits your stop loss.
The approach is not about guessing tomorrow's price from a chart alone. It blends fundamentals (is this a decent business?) with technical signals (is the price moving in the right direction?). Charts help with timing, but buying purely on a chart with no research is a poor substitute for understanding the company.
This screener automates that checklist. It scans liquid global stocks across major markets (market cap above $500M), deeply analyzes 100 candidates per run (80 core top pre-score picks plus 20 that rotate daily), and scores conviction out of 100. A high score means more boxes ticked — not a guaranteed winner.
How the score is built
Every stock is checked against about 27 rules, grouped into three conviction areas plus separate red-flag gates and an opportunity assessment. Conviction contributes points to the total score:
- Quality — up to 35 points. Is the business healthy and reasonably valued?
- Technical — up to 40 points. Is the share price in an uptrend with good momentum?
- Trade setup — up to 15 points. Could you actually enter the trade with sensible risk controls (entry, stop, liquidity, earnings timing)?
- Red flags — informational gates only (not added to the total). Six unique warning signs can cap the final label.
- Opportunity / upside — separate from conviction. Technical and analyst targets are combined conservatively for risk/reward — missing upside does not fail trade setup.
The final label tells you how strong the overall picture is:
- Strong candidate (80+) — passes most checks with few concerns.
- Watchlist (65–79) — interesting, but not perfect.
- Needs review (45–64) — mixed picture; dig deeper before acting.
- Rejected (below 45) — too many failures or missing data.
The raw conviction score (quality + technical + trade setup, max 90) is normalized to 0–100. Even a high-scoring stock can be capped to a lower label if a red flag fires or a trade-setup rule fails. Missing data also lowers confidence and may cap the label. Classification notes explain when a cap was applied.
Debt tiers: manageable debt is ≤150% debt-to-equity; 150–200% is elevated (quality fail) but not a red flag; above 200% is a red flag. 52-week low gray zone: technical pass requires ≥20% above the low; red flag fires at ≤10%; the 10–20% band is a caution zone without a red flag. Near-high stall gate: a raw Strong band can be capped to Watchlist when price is within 10% of the 52-week high but the 20-day gain is below 12% — grinding at highs without fresh momentum.
1. Quality checks — is it a good business?
We look for profitable, growing companies that are not drowning in debt and are not wildly overpriced — a growth-at-a-reasonable-price (GARP) style: you want growth, but not at any price. P/E ratios roughly in the 12–20 range are a useful benchmark when other signs are good.
Company is profitable
Why it matters: A business that cannot turn a profit may be burning cash or living on hope. We prefer companies where the numbers already work.
Revenue is growing
Why it matters: Rising turnover (sales) suggests demand for the product or service. Rising dividends, profits, and turnover are core selection criteria.
EPS / earnings are growing
Why it matters: Growing earnings per share (EPS) means the company is becoming more profitable per share — not just getting bigger on paper.
Free cash flow is positive
Why it matters: Profit on an accounting statement is not the same as cash in the bank. Positive free cash flow means the business generates real money after paying for day-to-day operations and investments.
Debt is manageable
Why it matters: Heavily indebted firms are avoided. A common rule of thumb: net debt should not exceed about three times annual pre-tax profit. We flag debt-to-equity above 150% as elevated.
Return on equity or capital is positive
Why it matters: This shows whether the company earns a decent return on shareholders' money. A positive return on equity (ROE) or return on assets (ROA) is a sign of efficiency.
Market cap is not tiny / speculative
Why it matters: Smaller companies can have room to grow, but very tiny stocks can be illiquid and volatile. We require at least $500M market cap to filter out the most speculative names.
Valuation is not extreme
Why it matters: Even a great company can be a bad buy if the price is too high. We flag very high P/E (above 50) or price-to-sales (above 15) ratios as stretched.
2. Technical checks — is the price moving the right way?
Charts are used to time entries, not to replace research. The screener prefers shares in an upward trend, near new highs, not breaking down to new lows — avoid buying shares trending downwards and making fresh lows.
Price above 50-day moving average
Why it matters: The 50-day average smooths out short-term noise. Price above it suggests recent strength — the stock is being bought, not sold off.
Price above 200-day moving average
Why it matters: The 200-day average shows the longer-term trend. Being above it means the stock is in a broader uptrend, not a prolonged decline.
50-day MA above 200-day MA (golden cross)
Why it matters: When the faster average sits above the slower one, short-term momentum aligns with the longer trend. Traders call this a bullish setup.
Price near 52-week high
Why it matters: Shares making progress toward new highs signal positive momentum. We pass stocks within 15% of their 52-week high.
Price not near 52-week low
Why it matters: A stock hugging its yearly low is often in trouble or out of favour. We want at least 20% above the 52-week low.
Stock is in an uptrend
Why it matters: We check whether the price has risen over the last 20 trading days. A positive short-term trend supports the idea that buyers are in control.
Recent volume above average
Why it matters: Rising price on strong volume suggests genuine interest. Thin volume can mean a move lacks conviction.
Breaking above recent resistance
Why it matters: Resistance is a price level where selling has previously capped the share. Breaking above it can signal a fresh leg higher — but only if the fundamentals back it up.
3. Trade setup — can you enter with controlled risk?
Before buying, plan your exit — especially your stop loss. Treat stops as an emergency exit to limit damage and remove emotion. If a share loses 5–10%, sell rather than hoping it comes back.
Clear entry price exists
Why it matters: You need a known price to size the trade and set a stop. Without a live quote, the setup is incomplete.
Stop loss no more than 10% below entry
Why it matters: Keeping losses small is essential. A stop more than 10% below entry means too much capital is at risk on one trade. Our suggested stop uses the higher of: 9% below price, just under recent resistance, or just under the 50-day average.
Spread / liquidity risk acceptable
Why it matters: Illiquid shares with wide bid-ask spreads (roughly 3–4% max) are hard to trade fairly. Thinly traded stocks are difficult to enter and exit at fair prices. We require average daily volume above 100,000 shares.
No earnings within 7 days
Why it matters: Earnings announcements can cause sharp, unpredictable price moves. It is usually better to avoid buying right before a report unless you have a specific reason.
4. Opportunity / upside — separate from conviction
Following classic risk/reward thinking, we assess upside separately from the conviction score. Analyst targets are optional confirmation — not required for trade setup to pass.
Technical target
Why it matters: Conservative chart-based upside: the nearest realistic level above price from recent resistance, 52-week high, or a measured move when breaking resistance.
Analyst target
Why it matters: Consensus analyst price target when available. Used as confirmation, not a conviction requirement.
Effective target
Why it matters: When both technical and analyst targets exist above price, we use the lower (more conservative) of the two. Risk/reward is calculated from entry to stop vs effective target.
Unknown potential
Why it matters: If no valid upside exists above price, opportunity is marked unknown and R:R is not assessed. This does not cap the conviction classification.
5. Red flags — warning gates
Six unique red flags act as gates. A “failed” red flag means the warning is present and can cap classification to Needs review — but red flags do not add or subtract conviction points. Falling revenue, earnings, cash flow, and below-200-day-MA are already covered by quality and technical rules, so they are not duplicated here.
Very high debt
Why it matters: Debt-to-equity above 200% is flagged as extreme. Heavy debt magnifies losses when times get tough. Elevated debt (150–200%) is a quality concern only.
Price near 52-week low
Why it matters: Within 10% of the yearly low suggests the market has been selling. Between 10–20% above the low is a gray caution zone without a red flag.
Very low trading volume
Why it matters: Volume below half the average means few buyers or sellers — harder to trade and easier to get caught in a sudden move.
Recent large price drop
Why it matters: A drop of more than 10% in five days may mean bad news the screener cannot see. Something may have changed.
Extreme valuation
Why it matters: P/E above 80 or price-to-sales above 30 suggests the market has priced in a lot of future growth already.
Missing too much data
Why it matters: If more than eight key data fields are unavailable, we cannot score the stock confidently. Understanding a company fully before buying is essential.
Universe selection — daily snapshot
Each evening we run a broad stable-universe scan and deeply analyze up to 300 stocks. Results are saved as a daily snapshot — everyone sees the same scores until the next evening run. During the day, only live prices refresh; classifications and rule checks stay fixed at the scan-time values.
Habits worth remembering
- Research first. Read annual reports, understand what the company does, and know why you are buying.
- Cut losers quickly. Use stop losses. Do not average down on a falling share — it is psychologically damaging and rarely ends well.
- Add to winners. As a trade works, you may buy more (average up) — but only when the story still holds.
- Avoid common mistakes. Ignoring stop losses, chasing tips, and buying penny shares without research are among the most frequent ways traders lose money.
- This is a starting point. The screener narrows a large market to candidates worth a closer look. It does not replace your own judgement.
Important disclaimer
This screener is a rule-based research tool generated by Huntover. It is not financial advice, not a buy or sell recommendation. Past patterns do not guarantee future results. Always do your own research and consider speaking to a qualified financial adviser before investing.