PROFITABLE STOCKS SCREENER
Sometimes the best strategy for stock selection is to look for profitable companies which are trading at moderate P/E multiples. A company making high gross margins and operating margins is an indication of a business which enjoys massive competitive advantage and is able to deliver products/services that are heavily in demand. However, the shares of such companies are also heavily in demand and normally trade at ridiculous valuation multiples. The trick is to look for profitable companies that trade at 'reasonable' valuation.
In this screener, we look for companies that are profitable in terms of gross margins, operating margins, net margins, roce, roa and roe, trading within a 'reasonable' P-E multiple of 30. In a way, "finding an outstanding company at a sensible price rather than an average company at a bargain price", as investment Guru Warren Buffet puts it.