Stock Screening: The Complete A-to-Z Guide for Investors

Vietnam's stock market currently has approximately 1,800 tickers listed across three exchanges: HOSE, HNX, and UPCOM. Even professional investors cannot analyze every single one. You need a systematic method to narrow the list down to 10-20 stocks worth deeper research — that is stock screening.

This guide covers the entire process: criteria, strategies, tools, and practical application.

1. Why Do You Need Stock Screening?

Most retail investors pick stocks by: hearing tips from friends, reading an analysis post on social media, or jumping into whatever is surging. This approach has two major problems:

• No system: Decisions based on emotions and fragmented information, with no clear criteria.
• Missed opportunities: You only know about "hot" trending stocks, while hundreds of quality stocks fly under the radar — like mid-caps with ROE above 20% that are not on most people's watchlists.

Stock screening solves both problems. Instead of analyzing 1,800 tickers, you set filters based on financial and technical criteria, then focus only on those that pass.

2. Four Groups of Screening Criteria

An effective filter combines multiple groups. Here are the four most common.

2.1 Fundamental Criteria

The most important group — reflecting the true financial health of a business.

• P/E (Price-to-Earnings) — How much are you paying for each dollar of profit? A P/E below the sector average could signal an opportunity, but always investigate the reason. Example: VNM's P/E of ~18.5 is above the dairy sector average (13.2), but its superior ROE justifies the premium.

• ROE (Return on Equity) — Measures how efficiently management uses shareholder capital. Above 15% is good, above 20% is excellent. FPT has maintained an ROE of 24-26% for multiple years — a sign of sustainable competitive advantage.

• D/E (Debt-to-Equity) — How much leverage is the company using? Below 1x is safe for most sectors. Above 2x warrants caution — unless it is banking or real estate, where high D/E is inherent to the business.

• EPS (Earnings Per Share) — Profit per share. More important than the absolute value is the 3-5 year EPS trend: consistent EPS growth signals genuine business expansion, not a one-time event.

2.2 Technical Criteria

If fundamentals answer "what to buy?", technicals answer "when to buy?"

• MA (Moving Average) — When the price crosses above the MA50 or MA200, it signals an uptrend. HPG crossing above its MA200 in January 2026 after a long accumulation phase gave early entry to those watching this signal.

• RSI (Relative Strength Index) — Below 30 = oversold (potential opportunity). Above 70 = overbought (exercise caution). But RSI is only effective when combined with the broader trend.

• MACD (Moving Average Convergence Divergence) — When MACD crosses above the signal line, it typically indicates new upward momentum. Combine with rising volume for confirmation.

• Volume — Rising volume during price increases means real money is flowing in. Falling volume during price increases signals caution — it could be a false breakout.

2.3 Growth Criteria

Suited for those seeking rapidly expanding businesses.

• Revenue Growth — Revenue growth above 15% annually for 3 consecutive years is a positive sign. FPT achieved 20-25% annual revenue growth in 2023-2025, primarily driven by its AI and digital transformation segments.

• EPS Growth — EPS growing above 20% per year typically pulls the stock price along with it. This is a core criterion in the CANSLIM method.

• Market Cap — Filtering by market cap helps focus on the right segment: large-cap (above 10,000B VND) for safety, mid-cap (1,000-10,000B VND) for growth potential, small-cap (below 1,000B VND) for high-risk-high-reward.

2.4 Quality Criteria

This group filters for businesses with genuinely solid operational foundations.

• Gross Margin — A high and stable gross margin indicates pricing power. VNM has maintained gross margins above 40% for many years — very few consumer companies achieve this.

• Operating Cash Flow — A company showing accounting profits but negative cash flow? Red flag. Positive and growing operating cash flow is a sign of genuine financial health.

• Insider Trading — Is management buying or selling? They understand the company better than anyone. Heavy insider buying is typically a positive signal.

3. Five Popular Screening Strategies

Each strategy uses a different combination of criteria, suited to different investing styles.

3.1 Value Investing

Finding stocks the market has priced below their intrinsic value. Criteria: P/E below sector average, P/B below 1.5, low D/E, dividend yield above 3%. Best for patient, safety-focused investors.

3.2 Growth Investing

Finding businesses expanding rapidly. Criteria: Revenue growth above 20%/year, EPS growth above 25%, ROE above 18%. P/E may be high — growth investors pay a premium for the pace of development.

3.3 Dividend Investing

Finding stocks that pay consistent, attractive dividends. Criteria: Dividend yield above 5%, payout ratio below 80%, at least 5 years of consecutive dividend payments. Best for those seeking passive income.

3.4 CANSLIM

William O'Neil's screening system, combining both fundamental and technical analysis:

• C = Current quarterly EPS up at least 25%
• A = Annual EPS up 25%+ over 3-5 years
• N = New (product, management, or price high)
• S = Supply/Demand (volume rises with price)
• L = Leader (high RS rating, sector leader)
• I = Institutional sponsorship (funds are buying)
• M = Market direction (overall market in uptrend)

3.5 Momentum

Finding stocks with strong upward momentum and riding the trend. Criteria: Price above MA50, RSI 50-70, volume up 50%+ vs 20-session average, relative strength above VN-Index.

Each strategy has its own strengths and weaknesses. For a detailed comparison, read Top 5 Stock Screening Strategies — including real Vietnamese market examples.

4. Screening Tools: Manual vs AI

You can screen by looking up data on CafeF and Vietstock yourself — or use AI tools for automation. The difference is significant:

Manual screening is not wrong — many skilled investors still do it. But as the number of criteria grows and screening becomes more frequent, automated tools save considerable time. Learn more about how AI is changing the screening process in AI Stock Screening: 100x Faster.

5. Demo: Practical Screening with FinStock

Suppose you want to find value stocks with these criteria: P/E under 15, ROE above 20%, D/E under 1. On FinStock, simply ask:

"Screen stocks with P/E under 15, ROE above 20%, debt-to-equity under 1"

FinStock runs the filter across all 1,800 tickers and returns a list in seconds. Results might include:

But this is only step 1. The list gives you 4 stocks worth deeper research — not 4 stocks to buy immediately.

Next step: analyze each in detail. Ask FinStock "Analyze PNJ" for a full report including the 3 most important numbers (P/E, ROE, growth), technical trends, recent news, and an overall assessment.

FinStock currently offers 22 built-in screening strategies — from Value, Growth, and Dividend to CANSLIM, Momentum, and custom strategies. Each strategy is designed with criteria optimized for the Vietnamese market.

6. Common Screening Mistakes

Another often-overlooked mistake: screening but then doing nothing with the results. Screening is only the first step. If you filter out 15 stocks and then leave the list untouched, you have wasted your time. You need a clear process from screening through to decision — see the next section.

7. Template: A 3-Step Screening Process

This process does not need to be perfect from the start. What matters is having a process — then improving it with each iteration. Many successful investors have personal systems built over years of experience.

Summary

Stock screening is a foundational skill every investor should develop. It does not need to be complex — start with a few basic criteria (P/E, ROE, D/E), choose a strategy that fits, and build a personal process.

If you want to start quickly, try asking FinStock: "Screen value stocks" or "Screen growth stocks with ROE above 20%" — the AI runs the filter and explains the results in seconds.

Read more:

• Top 5 Stock Screening Strategies — Detailed comparison of each strategy
• AI Stock Screening: 100x Faster — How AI replaces the manual process
• 10-Point Stock Analysis Checklist — A simple scoring system for step 2
• The 3 Most Important Numbers in Stock Analysis — P/E, ROE, and growth explained