Which are five widely used penny stock screeners in Australia?

Summary

• Penny stocks are those shares of a company that trade for less than a dollar.
• There are plenty of penny stocks in the market, and it needs proper research to choose a stock that matches your criteria.
• A stock screener is an automated digital tool, which allows traders to filter stocks (or penny stocks) based on a particular criterion. 

Penny stocks are those shares of a company that trade for less than a dollar. These stocks belong to companies with low-market capitalisation. These stocks are popular among small investors due to a perception that these can help retail investors to get rich quickly. As a result, these stocks tend to surprise with significant upside during bullish sentiment in the stock market.

What is a penny stock screener?

A stock screener is an automated digital tool, which allows traders to filter stocks (or penny stocks) based on a particular criterion. The tool helps keep a track of specific stocks during a trading session. Otherwise, a trader would be forced to spend long hours refining thousands of potential penny stock investments down to hundreds, or even a few dozen.

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Here are the five widely used penny stock screeners in Australia:

Morningstar

Morningstar.com Screens is built into the stock screener itself. A user can search and filter stocks by performance, ratings, or financials and browse stocks that match their investment criteria. A trader needs to click on the Morningstar Screens button at the top right of the criteria page. He then needs to click on the screen to view a description of the screen, followed by the screening criteria. Finally, to view the resulting stocks, click on Show Screen Results.

Investing

The Investing.com stock screener helps users to zero in on 20 to 30 relevant stocks based on benchmarks or metrics. For instance, the users can filter penny stock by sector, industry, equity types, P/E Ratio, Market Cap, and 1-Year Return.

TradingView

TradingView stock screener is known to be flexible and can be accessed at a low cost. You can screen ETFs and stocks using this platform, which allows you to easily switch between the two. With over 150 fundamental and technical filters, you can sort stocks with precision. TradingView’s stock screening platform is known to hold an edge over other screeners regarding the breadth of securities and investments it includes. You can also follow 60 global exchanges on the platform.

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Marketindex

The next in the index is Marketindex.com, which provides basic charting, dividend history, company overview. It provides commodities charts, with a data of 40 years, and a consolidated view of director transactions.

Yahoo

The Yahoo stock screener is another popular free tool used by investors and traders in Australia. You can locate the stock screener in the headings on the Yahoo Finance website’s homepage. Users can also create their own custom screener and use a few built-ins such as ‘day gainers’. On clicking the option, you may filter your results by clicking ‘edit’. There are also columns for price, price change, percent change, volume, three-month average volume, etc.

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Three must-have features for a stock screener

Data accuracy – Traders expect a stock screener to be highly accurate and up-to-date. Experienced traders should research the data provided by the screener to check its authenticity.

Diversification – A comprehensive stock screener generally has a vast set of stocks included in the database. With an increased number of stocks, the chances of finding a stock that responds to a deep set of criteria also rises.

Selection criteria – Widely sought-after stock screeners include a rich set of parameters for your search. You can also add more criteria until you find the best stock for your portfolio. You must also confirm the timeliness of the fundamental data.

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