You want to screen stocks but do not know where to start? Hundreds of financial metrics, thousands of tickers on the exchange — how do you choose?
The answer: it depends on your investing style. Here are the 5 most popular screening strategies, from classic to modern, with real examples from the Vietnamese market.
1. Value Investing — Buy Below Intrinsic Value
The philosophy of Warren Buffett and Benjamin Graham: find stocks that are priced below their true worth.
Key screening criteria:
- P/E below sector average (typically under 12-15)
- P/B below 1.5 — market price near or below book value
- Dividend yield above 4% — consistent dividend payments
- D/E below 0.5 — low debt, financial safety
Real example: In early 2025, several banking stocks like CTG and BID had P/E ratios around 8-10 — significantly below the sector average of 12-14. Value investors would recognize this as an opportunity.
Best for: Patient investors who prefer holding long-term and are willing to wait for the market to "discover" the value.
2. Growth Investing — Betting on Expansion
The opposite of Value — Growth investing does not care whether a stock is cheap or expensive, only about the rate of growth.
Key screening criteria:
- Revenue growth above 15% per year — strong and consistent top-line growth
- EPS increasing for at least 3 consecutive quarters
- ROE above 15% — efficient use of capital
- Improving gross profit margins year over year
Real example: FPT is a classic growth stock in Vietnam. Revenue growing over 20% for multiple years, consistent EPS growth, with the AI and digital transformation segments opening new growth avenues. The P/E may be high (20-25), but Growth investors willingly pay a premium for that trajectory.
Best for: Investors who accept higher risk and believe in the long-term growth story.
3. Dividend Investing — Steady Income from Dividends
A strategy for those who want a stable annual cash flow without depending on price fluctuations.
Key screening criteria:
- Dividend yield above 5%
- Consistent dividend history for at least 5 consecutive years
- Payout ratio below 70% — sustainable dividends without depleting earnings
- Positive operating cash flow
Real example: VNM (Vinamilk) is known as a "dividend king" on HOSE — paying regular cash dividends annually, with yields typically around 4-6%. GAS is similar, backed by strong operating cash flow from its gas business.
Best for: Investors seeking passive income, those approaching retirement, or anyone who prefers steady returns.
4. CANSLIM — William O'Neil's 7 Criteria
CANSLIM is William O'Neil's renowned screening system (from "How to Make Money in Stocks"), combining both fundamental and technical analysis. Each letter represents a criterion:
| Letter | Criterion | Meaning |
|---|---|---|
| C | Current Quarterly Earnings | Latest quarter EPS up at least 25% vs same quarter last year |
| A | Annual Earnings Growth | Annual EPS up at least 25% over 3-5 years |
| N | New Product/Management/Price High | A new catalyst: product, management, or new price high |
| S | Supply and Demand | Volume rising when price rises |
| L | Leader or Laggard | An industry leader, not a laggard |
| I | Institutional Sponsorship | Major funds and institutions are buying in |
| M | Market Direction | The overall market is in a bullish trend |
Real example: HPG (Hoa Phat) during 2020-2021 met nearly all 7 criteria: strong EPS growth (C, A), the Dung Quat factory as a new catalyst (N), volume surging (S), the steel sector leader (L), ETFs and foreign funds buying in (I), and the VN-Index in a clear uptrend (M).
Best for: Disciplined investors willing to invest research time, combining both fundamental and technical analysis.
5. Momentum — Riding the Trend
Momentum is based on a simple principle: stocks that are rising tend to keep rising (and vice versa). Fundamental analysis is secondary.
Key screening criteria:
- RSI in the 50-70 zone — upward momentum but not yet overbought
- MA crossover — short-term moving average crossing above the long-term average (e.g., MA20 above MA50)
- Volume breakout — trading volume surging as price breaks through resistance
- Price at or near the 52-week high
Real example: Technology stocks like FPT and CMG during AI-driven waves often create strong momentum — continuous price increases, surging volume, attracting more investors, creating a self-reinforcing cycle.
Best for: Short-to-medium-term traders who actively trade and have time to monitor the market daily.
Summary Table: Which Strategy Is Right for You?
| Strategy | Holding period | Risk | Knowledge required | Best for |
|---|---|---|---|---|
| Value | Long-term (1-5 years) | Medium | Fundamental analysis | Patient investors |
| Growth | Medium-to-long-term | High | Growth assessment | Risk-tolerant investors |
| Dividend | Long-term | Low | Basic | Income-seeking investors |
| CANSLIM | Medium-term (3-12 months) | Medium-high | Both fundamental & technical | Disciplined investors |
| Momentum | Short-term (weeks to months) | High | Technical analysis | Active traders |
Practical tip: You do not have to choose just one strategy. Many successful investors combine approaches: use Value to pick quality stocks, then use Momentum to time the entry. Or allocate 70% of the portfolio to Dividend stocks and 30% to Growth.
Putting It Into Practice
The biggest problem with manual screening: it takes too much time. Running all 5 strategies above across 1,700+ listed tickers would require opening hundreds of tabs, computing each ratio, and constantly updating.
FinStock includes 22 built-in screening strategies (including all 5 above), running across the entire Vietnamese stock market. Just ask: "Screen stocks using CANSLIM" — and results come back in seconds.
Read more: Stock Screening from A to Z — a step-by-step detailed guide.
Disclaimer: This article is educational, not investment advice. Examples are illustrative. Always do your own research and assess risk before making decisions.