D.R. Barton Reviews Google's Stock Screener

Stock Screening - Google Finance Falters

by
D.R. Barton, Jr.

Last week we ended by talking about Google Finance's use of Web 2.0 tools to make an addictive little screener. And it is truly fun to play with. But alas, when the playing is done and it's time to get down to some real work, Google Finance's stock screener really has little to offer.

First the good stuff about the Google screener. Compared to almost every other screener, it's easy to find. A little thing, I know, but it's frustrating trying to go through the multiple layers of web pages to get to some of the better no-cost screeners. At the top of the Google Finance homepage, right next to the ubiquitous Google search box, is a single hyperlink, the stock screener (in typical Google minimalist style).

Once you get to the screener you'll find four default screening criteria with boxes for minimum and maximum values. The truly unique part is the slider that's between the min/max boxes. Between the min and max sliders is a little histogram that represents how many stocks are at each increment of the slider. Cool. For most criteria, this looks like a normal distribution, with some skew to one side or the other. What makes this really fun is that if you move one of the min or max sliders to reduce the universe of stocks, you get instantaneous feedback on how many stocks satisfy the scan, plus a sortable list of stocks that meet all of the criteria. And when I say instantaneous, I mean less than a second.

As Google has set this up, it's a very visual process, but I'll try to describe one example for you. With all of the criteria set as wide as possible, Google shows 2,950 stocks. Move the 'dividend yield' minimum value slider to the right from 0% to 5% and the universe is reduced to 512 instantly sortable stocks. You can do this with 61 different criteria that Google provides, if you so choose.

But the good news pretty much ends there. The minus side of the ledger is unfortunately well populated for the Google Finance screener. And there are some deal killers.

First and foremost, there's no way to export the results of your scans to a spreadsheet or trading platform watch list. And if you devise a scan that you really like or need and want to run it later, there's no way to save a set of screening criteria. In addition, the universe of screening criteria is fairly limited.

Here's the bottom line. If you're just wondering how many stocks have a Market Cap over $1 billion and a dividend yield between 2% and 6%, and you want a lightening quick answer, Google can get you there with a sortable list. But you won't be able to save or export the scan, making the utility of this Google app marginal at best.

In the end, the Google Finance stock screener is a bit like a Slinky. It's fun to play with and can occupy you for minutes on end, but when all is said and done, you can't turn your time and effort spent into anything really useful.

Next week, we'll start to look at some screeners that scan for technical criteria. So please send any suggestions/thoughts/reviews of your own to drbarton "at" iitm.com. Until then...

Great Trading,

D. R.

About D.R. Barton, Jr.: A passion for the systematic approach to the markets and lifelong love of teaching and learning have propelled D.R. Barton, Jr. to the top of the investment and trading arena. He is a regularly featured guest on both Report on Business TV, and WTOP News Radio in Washington, D.C., and has been a guest on Bloomberg Radio. His articles have appeared on SmartMoney.com and Financial Advisor magazine. You may contact D.R. at "drbarton" at "iitm.com".