Finviz Best Screener Settings For Turnaround Stocks

In this lesson, I will share the optimal Finviz screener settings for identifying cheap stocks displaying classic turnaround patterns on charts. This will help you identify stocks experiencing upward trend reversals.

Before we begin, please make sure to sign up for a free Finviz account through me and let me know if you want to see more of the stock screens I use to find turnaround stocks for the GuerillaStockTrading Portfolio.

Finviz Screener Settings

First set Market Cap at greater than $300 million. Second, set Return On EquityReturn on Equity (ROE) is a financial metric that stands as a beacon illuminating a company's performance and efficiency. It transcends the realm of numbers, offering a profound gl... More at over 20%. Next, set Debt To EquityIn the world of corporate finance, one of the fundamental metrics that analysts and investors use to evaluate a company's financial health and stability is the Debt to Equity (D/E)... More at under 1. Next set Performance at Quarter Down and then in the Performance 2 field, set as Week Up. Next set beta at over 1.5. Finally, set Average Volume at Over 500K. Your Finviz stock screener settings page should look like this:

Below we examine each Finviz screener setting to better understand its power and our purpose.

Market Cap Greater than $300 Million

Market cap is the total value of a company’s stock, calculated by multiplying the current market price per share by the total number of outstanding shares. It aids investors in assessing a company’s value and growth potential, as well as facilitating comparisons between companies in the same industry or market. We establish a minimum market cap of $300 million to exclude penny stocks susceptible to manipulation by pump and dumpers.

Return On Equity Over 20%

ROE is a financial metric that measures a company’s profitability and effectiveness. It is calculated by dividing net income by average shareholder’s equity. It helps investors assess management’s ability to generate returns. We set the ROE at over 20% to improve the quality of the companies returned by the stock screener.

Debt To Equity Under 1

Debt to equity is a financial ratio that compares a company’s total debt to its total equity. It shows the company’s funding sources – debt versus equity. The formula is Total Debt / Total Equity. Total debt includes loans and bondsUnited States Treasury securities are debt instruments issued by the United States government to finance its spending. Treasury securities come in a variety of forms, including bil... More, while total equity represents the company’s net worth. A higher ratio indicates more reliance on debt and higher financial risk, while a lower ratio suggests greater stability. Investors, creditors, and analysts use this ratio to evaluate a company’s financial health and ability to fulfill obligations. We set the Debt to Equity below 1 to select companies with manageable debt. Additionally, we prioritize companies with solid fundamentals in this screen, as it increases the likelihood of a successful turnaround.

Performance Quarter Down, Performance 2 Week Up

The Performance and Performance 2 fields on Finviz display the stock’s price performance. We are seeking a stock that has decreased in the quarter (Performance) AND has increased in the past week (Performance 2). This is the magic within this stock screener that helps us identify stocks that have changed direction.

Beta Over 1.5

Beta measures the risk of a stock compared to the market. A beta of 1 means the stock moves with the market, while a beta greater than 1 suggests greater volatility. A beta less than 1 indicates less volatility. Beta helps investors assess risk and potential returns. Higher beta stocks are riskier but may offer higher returns, while lower beta stocks are less risky but may provide lower returns.

Average Volume Over 500K

Average volume is the number of shares traded in the stock each day. We set the average volume at over 500K to avoid trading in an illiquid stock that is more susceptible to a pump and dump scheme.

I have used this Finviz screen to find incredible turnaround stocks before most retail traders. I used this Finviz stock screener to time the turnaround in Amazon stock back in early 2023 that landed us a 30% win in the stock in less than 12 weeks! Please make sure to sign up for a free Finviz account through me and then email me with any questions or Finviz stock screens you would like to see.