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How To Make A Watchlist Of Stocks Based On Good Quarterly Results Using Screener
How to make a watchlist of stocks based on good quarterly results using screener

How To Make A Watchlist Of Stocks Based On Good Quarterly Results Using Screener

#How to make a watchlist of stocks based on good quarterly results using Screener

Coronavirus has locked humans inside their homes and as a consequence the global economy is suffering badly.

The stock markets have already had a bout of anxiety and they are trying to recover from it but the financial damage that has already happened will rear its head, once the news channels shift their focus to earnings season.

In the midst of this turmoil you have your task cut out as an investor as it is time to cherry pick stocks which may have a great future lying ahead.

But before we move ahead I want to ask you if you have a process that helps you discover new multibaggers in the first place?

It does not matter how great you are at analyzing companies unless you have a process in place that helps you find stocks of companies with great future potential.

Well don’t worry if you don’t have a process to unearth great stocks. You won’t miss your multibaggers as in this post I am going to share the process that I follow to keep track of new stock ideas using quarterly results.

In order to find winning stocks you have to keep an eye on companies posting great results and find out the reason for its outperformance. This way investors can unearth multibagger stocks much early in their growth phase.

Sometimes all it takes to make a languishing company a super performer is a change in management or China enforcing strict environmental controls on their chemical companies or company creates a brand out of a commodity.

The moment there is a positive trigger for a company, it will immediately start reflecting in the quarterly results. This then becomes the trigger for an investor to investigate more about the firm.

Folks. In this post I will show you how I have been making a watchlist of stocks based on good quarterly results using a website named screener and how screener has helped me in organizing my work related to finding stocks and keeping track of them.

So stay tuned and read until the end. You don’t want to miss out on the chance to finding good companies when once in a lifetime opportunity is upon us.

What Is Screener

Screener is a wonderful website developed by Mittal Analytics Private Limited that helps you screen stocks listed on NSE & BSE based primarily on fundamental analysis. The people behind the development of this wonderful tool do need a mention.

Screener has been developed by Ayush and Pratyush Mittal. While Prtayush has been fond of coding, Ayush is known for finding many multibagger stocks. You can read more about them here.

As an investor I have been an extensive user of their website. There are a whole lot of things that you can do with this website.

I am listing some of the features here but in this post I will be focusing on using screener for keeping track of companies coming out with strong quarterly results.

1. You can create a watchlist of your favourite stocks. Once you have created a watchlist you will get all the notifications that the company in the watchlist files with NSE or BSE.

For example, updates related to promoter buying and selling of shares, publication of quarterly results, any press release by the company etc.

2. One can also create customized search query which can throw a list of companies. For example, a search query like:

ROCE 3YR AVG > 20 will show you a list of companies whose three year average ROCE has been greater than 20

Off course you can write more complex theories

3. You can also get updates by emails related to your search queries which will help you find new stocks matching your search criteria

4. All financial statements like P/L statement, Balance sheet and Cash flow statement of a company can be seen here and can also be downloaded in excel for analysis.

Now let us see how we can track companies posting good quarterly results using screener.

From here on we will discuss the step by step process to help you make a watchlist of stocks based on good quarterly results and get email alerts for these companies as well.

1. Creating An Account With Screener

In order to get a list of companies showing strong quarterly results, we need to begin with setting up an account first. So go to screener and click on register (as highlighted by blue arrow)

registering with screener

All you need to do next is enter your email and password (as shown below) and then verify your email address to setup an account with screener.  That’s how simple it is.

create an account with screener

2. Accessing The Screens Tab For Queries

Once you verify your email, you just need to login to your account and select the screens tab (as shown below)

screener post email account verification

On clicking the “Screens” tab, a list of popular screens will appear (as shown below). A screen is nothing but a search query that displays a list of stocks matching the criteria input by the user.

For the purpose of this article, our interest lies in the screen named “Bull Cartel” which also happens to be the first screen listed there.

popular stock screens on screener

As per the snapshot below, “The Bull Cartel” displays a list of companies with good quarterly growth. It is designed to specifically keep a track of latest quarterly results.

Just to make things more clear. If you scroll down the page displaying stocks under “The Bull Cartel” you will find the  following database query:

YOY quarterly sales growth > 15 and
YOY quarterly profit growth > 20 and
Net profit latest quarter > 1

This means that user wants to see all stocks which showed a year over year quarterly sales growth > 15% and year over year quarterly profit growth > 20%.

Next we click on “The Bull Cartel” and a screen with a list of companies pops up (as shown below)

make watchlist of stocks based on quarterly results using screener through the bull cartel screen

3. Familiarizing Ourselves With The Screen & Getting Updates By Email

As can be seen, “The Bull Cartel” displays the name of the company, its current market price (CMP), its PE ratio, Market cap, Dividend Yield, Net Profit for the quarter, Quarterly profit growth, Sales during the quarter, Quarterly sales growth, ROCE and ROE.

What we are interested in is the “Get updates by email” feature. As shown below, click on get updates by email and that’s it. You have activated the alerts for the screen bull cartel.

make a watchlist of stocks based on quarterly results and get updates by email feature screener

Once the alerts are activated, everytime there is a new quarterly result updated, it will trigger an email to your email account.

To give you an example, I got an email update on 24th April once the Q4FY20 (results for quarter ended 31st Mar, 2020) quarterly results for some companies were updated. Please see the snapshot below.

make watchlist of stocks based on quarterly results using email update for the screen bull cartel

Just a glimpse at the email update provides me with three companies which reported a year on year quarterly profit growth > 20% and year on year quarterly sales growth > 15%.

As an investor, I now have three companies worth analyzing. From here onwards, I can use the financial ratios and look at the financial statements to check if any of the above three companies can be a great investment.

On a side note, apart from the bull cartel, please do explore other screens as well like “High Moat Businesses” and others.

4. Perform Fundamental Analysis On The Stocks Listed In Bull Cartel Screen

Now that you know how to figure out stocks posting strong quarterly results, you at least have a way to know which stocks need to be analyzed.

So the next step is to perform a thorough fundamental analysis on the stocks highlighted. You can go through my previous articles listed below to help in stock selection process.

1. Stock selection criteria for investing during current market crash

2. Five Important Profitability ratios

3. Two critical financial ratios to avoid investing in indebted companies

4. Nine warning signs to detect fraud or financial distress in a company

5. Set The Stock On Your Watchlist

Coming back to the email alerts that you will continue to receive whenever there is a new entry to the bull cartel. Let us consider the below email that I received on 30th April, 2020.

As per the email, Hexaware Technologies seems to have comeout with a solid Q4FY20 result showing a 21.97% sales growth and 26.34% profit growth. Now assume the stock also passes through your fundamental analysis.

In such case it is only logical that we add it our watchlist.

second email update for the screen bull cartel

You just need to click on the link to Hexaware Technology in your email and it will take you to a page as shown below.

hexaware technologies data on screener

In order to add “Hexaware Technology” to your watchlist you will have to select the “+Follow” tab as pointed by the blue arrow and that’s it. You have successfully added Hexaware to your watchlist.

6. Verifying Your Watchlist & Benefit Of Adding A Stock Tou Your Watchlist

Please note that you can view all stocks on your watchlist by clicking the “Watchlist” tab on screener as shown below:

watchlist tab on screener

Once you click on the “Watchlist” tab, above page will be displayed with the list of all stocks you added to your watchlist. As we have added only Hexaware Technology so it is showing only one result.

From here on whenever Hexaware Technologies updates the stock exchanges with any information, be it quarterly results or a press release or any insider buying/selling, it will show up in your inbox.

That’s the beauty of screener. You can keep track of all the stocks in your watchlist through email.

Is this not a wonderful way of finding stocks based on quarterly results and then tracking them through the watchlist by getting email alerts?

It surely is a marvellous job done by the developers of screener (The Mittal Brothers).

Believe me. It has helped me a lot in organizing my work. Earlier I had a tough time keeping track of stocks or even finding new stocks but screener has made my life much easier.

Summary

Earlier when I did not use screener my wife told me that I just kept track of a handful companies but once i discovered screener, the number of companies with great future potential in my watchlist kept increasing.

So go ahead and make use of screener to create your watchlist of promising stocks. It is also very important to keep track of companies posting strong quarterly results during such tough times (especially Q4FY20, Q1FY21, Q2FY21 and Q3FY21).

I hope you found this article useful. Please do help me in sharing this article as it provides me the inspiration to write more such posts.

I will be sharing more features of screener in my subsequent posts that will help you in organizing your workspace on screener. So do subscribe and watchout for more such posts.

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