Summary
Highlights
The video starts by highlighting the impressive returns of top-performing stocks like Monster Beverage, Apple, and Nvidia over the last 20 years, emphasizing the goal of finding the 'next big thing' before it becomes a household name. It introduces Finviz as a tool to achieve this.
The tutorial begins on the Finviz homepage, focusing on the 'screener' tab. The first filters applied are 'Country' (USA) and 'Market Cap' (under $10 billion, to target medium-minus sized companies with higher growth potential, as larger companies like Amazon or Apple may have less room for exponential growth).
The video then moves to the 'fundamental' tab. Key filters include 'Price/Earnings Growth (PEG)' under 2 (since Finviz's free version doesn't allow decimals, 1.5 is ideal), which accounts for both P/E and growth rate. 'Price to Sales' is set to under 10, to avoid overly expensive high-growth companies. 'EPS Growth Past 5 Years' and 'EPS Growth Next 5 Years' are both set to over 15%, leveraging analyst estimates for future growth.
Further fundamental filters are applied: 'Sales Growth Last 5 Years' over 20% to ensure fast-growing companies, 'Return on Equity' over 10% to indicate profitability from shareholder money, 'Current Ratio' over 1.5 for a healthy balance sheet and ability to pay short-term liabilities, and 'Operating Margin' as positive to ensure fundamental profitability even if net income is not yet positive.
After applying all filters, the number of companies is significantly reduced (e.g., to 14 from 10,000). The video instructs on customizing the displayed fields to include relevant metrics like PEG, EPS growth (past and next 5 years), sales growth, return on equity, current ratio, and operating margin. It then demonstrates how to sort the results by these metrics (e.g., sales growth or EPS growth) to identify top performers like 'Onto Innovation' and 'Clear Water'.
The video concludes by emphasizing that the screener provides a list of potential candidates, but the crucial next step is to perform in-depth fundamental analysis on these companies to determine which ones are truly worth investing in for long-term, multi-bagger returns. It promotes another video on leveraging AI for stock research.