AAII has been tracking 50-plus stock screening methodologies for over 11 years. In following a given strategy, the hope is that the underlying characteristics of the stocks matching the screening criteria will allow them to outperform the overall market.
Taking this one step further, is a stock that passes multiple complete screening approaches more attractive than a stock that just passes one screening approach? Possibly, if the collection of screening approaches is based upon solid financial principles and diverse enough to capture unique, yet desirable qualities.
In order to allow users to identify stocks that pass multiple screening strategies, a Multiscreen Selector tool has been added to Stock Investor.
To open the Multiscreen Selector in Stock Investor, select the Tools menu from the top of the program window and then select Multiscreen Selector (Tools—Multiscreen Selector). Alternatively, simultaneously pressing the Alt and M keys (ALT + M) will open the Multiscreen Selector window:
The Available Screens list includes those screens that are pre-built into the software as well as any screens you have created and saved. Highlighting a screen from the Available Screens list and then clicking on the Add > button will add it to the list of screens to be evaluated by the Multiscreen Selector. Similarly, double-clicking on an available screen will add it to the list of screens the selector will evaluate.
As you add screens for evaluation, the Multiscreen Selector will indicate how many companies pass each of the screens (Figure 2). There is no limit to the number of screens the Multiscreen Selector can evaluate at once. However, the more screens you add, the less likely it is that any stocks will match all of the criteria of the selected screens. Also, sometimes after you add a screen to be evaluated, the list of available screens will disappear. Simply click on the area under Available Screens to see the list.
Once you have added all of the screens you wish to evaluate, click on the Apply button to see how many companies passed all of the screens. If at least one company passed all of the specified screens, the results will appear in the Stock Notebook. However, a message box will appear if the combination of screens you selected produces zero companies (Figure 3). Also, this message will tell you which screen was being evaluated when the query ended. In this event, the list of companies in the Stock Notebook is the set of companies that passed all of the screens up to the screen being evaluated.
By default, the Multiscreen Selector looks for those stocks that pass all of the screens selected for evaluation. This is indicated when the radio button next to Apply And in the middle of the Multiscreen Selector window is marked. However, you can also use the selector to identify stocks that pass any of the selected screens. You do this by clicking on the radio button to the left of Apply Or. When Apply Or is selected, clicking on the Apply button will then generate the list of stocks passing any one of the chosen screens.
The results of the Multiscreen query are loaded into the Stock Notebook. From there, you can save the listing as a portfolio, sort the results, export the companies and data, or print reports.