How to Use a Stock Screener to Find Undervalued Stocks?

Published on January 30, 2025 | 2 min read

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Investors looking for hidden gems in the stock market often turn to undervalued stocks—companies trading below their intrinsic value. A stock screener is a powerful tool that helps identify these opportunities by filtering stocks based on specific financial and technical metrics. In this guide, we’ll show you how to use the FinQuota Stock Screener to find undervalued stocks effectively.


Define Your Criteria for Undervalued Stocks

Before using a stock screener, it's essential to know what makes a stock undervalued. Key factors include:

  • Low Price-to-Earnings (P/E) Ratio – Compares a company's stock price to its earnings per share.
  • Low Price-to-Book (P/B) Ratio – Measures a company’s stock price relative to its book value.
  • Strong Earnings Growth – Indicates potential for future stock price increases.
  • High Dividend Yield – Suggests stability and potential returns.

You can explore a curated list of undervalued stocks on FinQuota.


Apply Filters in the FinQuota Stock Screener

To narrow down undervalued stocks, visit the FinQuota Stock Screener and apply the following filters:

  • P/E Ratio Below Industry Average – Look for stocks with lower-than-average valuations.
  • P/B Ratio Below 1.5 – Indicates a stock may be trading below its book value.
  • Positive Earnings Growth – A good sign of future profitability.
  • Market Cap – Filter for small, mid, or large-cap stocks based on your risk appetite.

Look for Uptrend Confirmation

Undervalued stocks are great, but it’s even better if they are gaining momentum. Checking for an uptrend can help confirm your choices. You can browse uptrend stocks on FinQuota to find undervalued companies that are already showing bullish signs.


Explore Industry-Specific Opportunities

Some sectors, like technology, often have undervalued stocks with high growth potential. You can screen for technology stocks to find hidden opportunities.


Consider Penny Stocks Under $1

For investors looking for low-cost opportunities, screening for stocks under $1 can uncover potential high-reward investments. However, these stocks carry higher risk, so do thorough research before investing.


Conclusion

Finding undervalued stocks requires a strategic approach. Using the FinQuota Stock Screener allows you to filter for undervalued opportunities based on key financial metrics. Whether you're looking for undervalued stocks, uptrend stocks, or niche opportunities in technology, FinQuota provides the insights you need to make informed investment decisions.

Start screening today and discover the next undervalued gem in the market! 🚀

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