A stock screen (or stock screener) is a tool that investors use to help them identify the right stocks for their investment goals. Stock screens sort through myriad companies and select stocks that match the investor’s criteria.

Stock screeners have databases in which investors can run power searches. They provide investors with data that help them make informed investment decisions. An investor can screen certain types of stocks by entering parameters or ranges such as “market capitalization between $1 and $3 billion” or “earnings per share of 10 percent within last four years.”  The screener then lists companies or stocks that meet those standards.

There are a multitude of companies from which investors can choose. A stock screen narrows the choices of potential stocks an investor may be interested in purchasing. Some stock screeners have preset parameters while others allow investors to customize their screens based on their specified requirements.

There are different types of stock screeners. Fundamental screens look at business factors such as company sales and profits. Technical screens focus on stocks based on the patterns of their prices and volumes. Although stock screens help investors find potential investments, they are not a guarantee for picking winning stocks.

There are many Web sites that offer investors free stock screeners. However, the sophisticated stock screeners that allow for more qualified searches usually charge subscription fees.

You can find some free stock screeners by visiting: screen.yahoo.com/stocks.html, moneycentral.msn.com/investor/finder/customstocksdl.asp and www.reuters.com/finance/stocks.