How to Find Small-Cap Stocks With A Stock Screener?

7 minutes read

Using a stock screener to find small-cap stocks involves selecting certain criteria to narrow down the vast number of options available. Start by choosing the market cap filter and setting it to select only companies with a market capitalization below a certain threshold, usually around $2 billion. You can also specify other criteria such as volume, price-to-earnings ratio, revenue growth, and more to identify potential small-cap stocks that meet your investment goals. By using a stock screener, investors can quickly and efficiently sift through the many options available in the market to find small-cap stocks that may have potential for growth and profit.

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How to set up alerts for small-cap stocks on a stock screener?

  1. Choose a stock screener platform that allows you to set up alerts for small-cap stocks. Some popular options include Finviz, Stock Rover, and TradingView.
  2. Create an account on the stock screener platform and familiarize yourself with its interface and features.
  3. Use the filters on the stock screener to narrow down your search to small-cap stocks. Small-cap stocks are typically companies with a market capitalization between $300 million and $2 billion.
  4. Set up specific criteria for the small-cap stocks you are interested in monitoring, such as price, volume, earnings growth, and industry sector.
  5. Look for an option to set up alerts or notifications for the stocks that meet your criteria. This could be done through email alerts, push notifications, or in-app notifications.
  6. Customize the alert settings to your preferences, such as frequency and sensitivity. You may want to receive alerts whenever a small-cap stock reaches a certain price, volume level, or other criteria you have set.
  7. Save your alert settings and monitor your watchlist regularly for any alerts that are triggered.
  8. Adjust your criteria and settings as needed to fine-tune your alerts and stay informed about potential investment opportunities in small-cap stocks.


What are some good resources for learning more about small-cap stocks?

  1. Investopedia: Investopedia offers a wealth of information on various topics related to investing, including small-cap stocks. They have articles, tutorials, and guides to help beginners understand the basics of investing in small-cap stocks.
  2. SmallCapPower: SmallCapPower is a website that focuses on providing information and analysis on small-cap stocks. They offer research reports, stock picks, and market updates to help investors make informed decisions.
  3. Seeking Alpha: Seeking Alpha is a platform where investors can find analysis, news, and research on small-cap stocks. They have a dedicated section for small-cap stocks and provide insights from both professional analysts and individual investors.
  4. The Small-Cap Institute: The Small-Cap Institute is an organization that focuses on educating investors and providing resources on small-cap investing. They offer webinars, white papers, and courses for investors looking to learn more about small-cap stocks.
  5. Financial news websites: Websites like Bloomberg, CNBC, and MarketWatch regularly cover small-cap stocks and provide news, analysis, and insights on the latest trends in the market. Reading articles and watching videos on these websites can help investors stay informed about small-cap stocks.


What is the difference between small-cap, mid-cap, and large-cap stocks?

The main difference between small-cap, mid-cap, and large-cap stocks lies in the size of the company in terms of market capitalization. Market capitalization refers to the total value of a company's outstanding shares of stock and is calculated by multiplying the number of outstanding shares by the current market price of each share.


Small-cap stocks: Small-cap stocks refer to companies with a market capitalization typically between $300 million and $2 billion. These companies are smaller in size and tend to have higher growth potential, but also carry higher risk due to their smaller size and potentially less stable financial performance.


Mid-cap stocks: Mid-cap stocks refer to companies with a market capitalization typically between $2 billion and $10 billion. These companies are considered to be in the middle range in terms of size and are often seen as a balance between growth potential and risk.


Large-cap stocks: Large-cap stocks refer to companies with a market capitalization typically above $10 billion. These companies are larger and more established in terms of market presence and financial stability. They are generally considered to be less risky than small-cap and mid-cap stocks, but also tend to have lower growth potential.


Overall, small-cap stocks are considered to be riskier but potentially offer higher returns, while large-cap stocks are seen as more stable but with lower growth potential. Mid-cap stocks fall in between these two categories in terms of risk and potential returns. Investors often diversify their portfolios by investing in a mix of small-cap, mid-cap, and large-cap stocks to achieve a balanced risk-reward profile.


How to assess the risk of investing in small-cap stocks using a stock screener?

Using a stock screener can help you assess the risk of investing in small-cap stocks by providing you with key information and metrics to evaluate the company and its financial health. Here are some steps on how to assess the risk of investing in small-cap stocks using a stock screener:

  1. Start by selecting a stock screener tool that provides comprehensive data on small-cap stocks. Some popular stock screeners include Yahoo Finance, Finviz, and MarketWatch.
  2. Set specific criteria for screening small-cap stocks based on risk factors such as market capitalization, debt levels, earnings growth, and volatility. You may want to filter for small-cap stocks with market capitalizations below $2 billion, low debt-to-equity ratios, positive earnings growth, and stable stock price movements.
  3. Look for key financial ratios such as the P/E ratio, P/B ratio, and dividend yield to assess the valuation and financial stability of the small-cap stocks. A low P/E ratio and P/B ratio may indicate undervaluation, while a high dividend yield could signal financial health.
  4. Analyze the company's balance sheet, income statement, and cash flow statement to evaluate its financial performance and stability. Look for positive trends in revenue growth, profitability, and free cash flow generation.
  5. Pay attention to the company's industry and sector trends, as well as any macroeconomic factors that could impact the small-cap stock's performance. Consider the competitive landscape, regulatory environment, and market conditions when assessing investment risk.
  6. Use technical analysis tools on the stock screener to analyze the stock price movements, chart patterns, and trading volumes of the small-cap stocks. Look for potential entry and exit points based on technical indicators and signals.
  7. Conduct thorough due diligence and research on the selected small-cap stocks before making investment decisions. Consider consulting with financial advisors or experts for additional insights and advice on evaluating investment risks in small-cap stocks.


Overall, using a stock screener can help you assess the risk of investing in small-cap stocks by providing you with valuable data and insights to make informed investment decisions. It is essential to conduct thorough research and analysis to mitigate risks and maximize potential returns when investing in small-cap stocks.

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