Identifying the next big growth stock is not simply about luck—it is about having the right tools and knowing how to use it. With thousands of publicly traded companies across the world, investors need a systematic method of identifying stocks with high potential for growth. A stock screener is a great asset in this process, it allows investors to filter and analyze companies using specific criteria, such as earnings growth metrics, revenue growth, valuation measures, or market cap.
Of all the platforms that currently exist to screen for stocks, TradingView’s stock screener is one of the easier options to use and provides both real time data and depth of analysis. That is why it is popular among both traders and long-term investors, as it allows you to screen for growth opportunities in a process that is easy and sophisticated. Today we are going to cover how to use a stock screener like TradingView in order to find growth stocks for your investment watchlist.
What Draws Us to Growth Stocks?
Growth stocks represent companies that are growing revenue, earnings, and market share at an outsized rate compared to their peers. More often than not, they are innovative enterprises disrupting their respective industries – think technology, healthcare, renewable energy or fintech companies.
Investors love growth stocks because of the potential for significant capital appreciation over time. Yes, you will likely deal with a higher volatility profile, but the upside can be fantastic if you identify them early. Still, identifying the true seeds of growth rather than something that is simply a flash in the pan requires diligence – which is exactly what TradingView’s screening tools are designed to assist you with.
Why do we use a stock screener?
A stock screener is a critical tool to assist in narrowing down your consideration set of thousands of stocks into a manageable list that fits your strategy. Rather than conducting your own research on each company on your own, a screener can automate the process through customizing filters.
You can customize filters for:
Earnings Growth: Companies with strong earnings per share (EPS) on a quarterly (or annual basis) growth.
Revenue Growth: Companies with consistent period over period sales growth.
Price Performance: Stocks that have consistently outperformed their sector or index.
Valuation Metrics: Valuation ratios such as Price-to-Earnings (P/E), Price-to-Book (P/B), or Price/Earnings-growth ratio (PEG) in terms to assess fair value.
Sector / Market Cap: A filter to target specific companies in each sector as well as target for larger companies vs. smaller companies.
The objective is to locate stocks showing momentum as well as financial strength prior to wider exposure.
Let’s Start with the Stock Screener on TradingView
TradingView has made stock screener fairly easy to do for the novice investor. After opening the TradingView stock screener, you will be directed to three main sections, which will be organized into: Filters, Columns and Results.
1. Pick Your Market
The first step is to select what exchange or market region you wish to filter on (e.g. U.S. exchanges, European exchanges, Asian exchanges, etc.). You can even filter on more specific indices, such as the S&P 500 or NASDAQ.
2. Set Fundamental Filters
Next, you will define your parameters for growth. For example, you might use the following:
- Revenue Growth (YoY) > 20%
- EPS Growth (YoY) > 25%
- Debt/Equity < 1
- Return on Equity (ROE) > 15%
These filters will refine your search for financially strong, growing companies. TradingView will provide you with real-time data for quick decisions.
3. Add Technical Indicators
Most growth stocks also have significant technical indicators. Additional parameters you might choose include:
- Price above the 50-day and 200-day moving averages
- RSI between 40 and 70 (sustained momentum)
- MACD positive crossover
These indicators help confirm if a stock is exhibiting growth while having historically proven price action.
4. Adjust Columns and Sort
Customize your display by adding columns you want to view like “Revenue Growth %,” “EPS Trend,” or “P/E Ratio”. Sorting the results by highest revenue growth, or best performing stocks, will help you locate your outliers quickly.
Example: Setting Growth Stock Screen – Technology Sector
As an example, consider:
- Sector = Technology
- Market Cap > 1 billion
- Revenue Growth (YoY) > 25%
- EPS Growth (YoY) > 20%
- P/E < 50.
Because the criteria will give you mid to large-cap companies who have shown sustainable growth, combined with reasonable valuations. Many successful investors use criteria based on sustainable growth metrics when screening for next generation innovators (pick the low hanging fruit) as they prepare to make a significant impact on their industry, if not devour it.
More recently, a set of data on emerging software and semiconductor companies indicated stocks utilizing similar criteria had dramatically higher 12-month period returns than the markets overall. In classic value investing, you should focus on quality growth stories and avoid being tempted to make speculative picks.
Assessing Growth Prospects: What to Expect
Once you’ve populated a list of possible stocks to buy, it’s time to start digging into each company’s operating fundamentals and stock selection strategy. Think through the following:
Earnings Growth: Are earnings growing consistently or are profits being driven by one-time occurrences?
Revenue Base: Is the company largely dependent on one product or particular customer?
Market Growth: Is the business a part of a growing market or segment?
Valuation versus Growth: High-growth companies may justify higher price-to-earnings ratios, but parabolic valuations are risky.
Many investors with deep experience couple the quantitative indicators on sheets like TradingView, with off-line qualitative insight, like surveys of the market and guide on industry growth and trends.
For example, recent conversations regarding how a smarter investment strategy, at every life stage, can impact long-term growth of a portfolio, emphasize the need to understand the broader environment that a company operates within in order to grow the company in a sustainable manner. Sustainable growth typically comes from firms that strategically grow their business with shifting market demand..
Watchlists and alerts
Besides the sheer convenience of screening for growth stocks in a platform like TradingView, you can save your screening criteria and create watchlists. You can also activate alerts to signal to you when the stock meets your criteria—for example, you can create an alert when a business exceeds 30% quarterly revenue growth or when the stock price breaks a resistance level on the long-term trend. This ultimately helps to put you in a position to act and move quickly.
Combining growth and risk management
Screening for growth stocks can create potential opportunities, however risk management is a skill that will always be worthwhile. High-growth stocks can be volatile, especially given market corrections or shifts to interest rates. Being disadvantaged by having all of your capital deployed in high-growth stocks exposes you to more risk. Risk management. Diversification, stop-loss strategies and rebalancing your portfolio are all ways to manage your capital.
Understanding economic signals able to influence growth stocks, like changing interest rates or consumer sentiment are able to provide context in your analysis and monitoring resources. You can become a successful investor for the long haul if you temper your optimism with discipline i.e. previous market commentaries on wealth strategies and building wealth that we’ve outlined before show that the best investors maintain a balance between optimism and discipline.
Conclusion
In a data-focused investing world, services like TradingView’s stock screener put the reins of the research process into the hands of investors. Whether you’re building a portfolio emphasizing growth, or just trying to identify trades for the next day or week, a stock screener is a powerful tool that allows flexibility and precision.
By combining fundamental and technical filters, you can screen for high-quality, growth stocks – your next pick should check all the boxes on your financial objectives.
The features of watchlists, filters, and real-time alerts make TradingView a valuable part of any serious investor’s toolkit – enabling you to identify the next big winners.
With a systematized structure and screening approach, you are not simply following the trend – you are making an informed and calculated decision, with data and insight to back it. This is the basis of consistent success with a growth investing mentality.
