Tuesday, May 20, 2008

How to Screen Stocks With Yahoo Finance


The best indicators on Yahoo Finance are price/sales and 5 year growth. 

Price/sales is a more accurate indicator for value than price/earnings, because sales are more straightforward and less manipulated than earnings.

The way I would screen stocks is to sort the companies on the price/sales column from lowest to highest, because lower is better.

First, look at the top 40-50 companies (the ones with the lowest price/sales). 

Then, out of these 40-50, focus on the companies with the highest 5 year growth.

This way, you will choose stocks that are growing, but still have value because they are relatively lower-priced.

These stock selections will work great with any system, including buy and hold.

You can get a great return if you manage these picks with my investment system.

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