This time last year, the S&P 500 was making new all-time highs near 4,900. Fast forward to today, and stocks are once again near record highs, this time above 6,000. The tech-fueled rally that’s benefited from lower interest rates and broad earnings strength, among other factors, has also helped push the Nasdaq to new all-time highs.
There are risks to the rally, of course. Oil prices have climbed since early December and the potential impact of tariffs from the Trump administration are sources of uncertainty. Global instability as well as any other unforeseen factors could also halt the momentum markets had entering 2025.
But if you are looking for new ideas to ride the bull market in its third year, here are 3 stock screens from Fidelity.com's Stock Screener, plus the top 10 results for each.
Growth has the momentum
Outside of a period surrounding the pandemic, growth stocks have outperformed value stocks for more than a decade—and by a relatively wide margin. The tech rally has been primarily responsible, with several other growth sectors contributing as well.
Investors who believe growth-oriented investments are likely to continue to beat value-oriented investments may be basing that decision on momentum and other economic factors that have helped drive the growth outperformance.
If you are interested in exploring stocks that have exhibited strong growth characteristics, here are the top 10 results of a screen looking at stocks with a forward EPS long-term growth rate (3 to 5 years) of at least 15.7%, cash-flow growth rate (5 years) of at least 12.1%, and a 90-day average daily volume of at least 613.7K, sorted by market cap, as of January 23, 2025:
- Nvidia (
- Amazon.com (
- Meta Platforms (
- Alphabet (
- Broadcom (
- Alphabet (
- Mastercard (
- Netflix (
- T-Mobile US (
- ServiceNow (
After you run a screen, you should evaluate the results and how they might impact your investment mix. For example, a consideration when adding individual stocks to your portfolio is concentration risk within a particular sector or industry. Most of these results are tech and communication services stocks. You'd want to think about how adding any of these stocks might impact your overall investment mix and exposure to an individual sector.
Value
While growth has been the outperformer over the last 10 years, value stocks have historically held that title for much of the market's history. And while momentum can be a powerful force, investing trends can quickly change. Moreover, value stocks have the advantage of not having broadly run up as far as growth stocks in recent years, and thus their valuations are generally more attractive.
If you are interested in exploring stocks that might offer better value, here are the top 10 results of a screen looking for stocks with a low price-to-earnings ratio (between 0 and 9.3 using next year’s earnings estimate), a low price-to-cash-flow ratio (between 0 and 6.8), a low price-to-book ratio (1.3 and below), a low price-to-sales ratio (0 to 1.29), and a 90-day average daily volume of at least 609.9K, sorted by market cap, as of January 23, 2025:
- Shell (
- TotalEnergies (
- Banco Santander (
- General Motors (
- Petroleo Brasileiro (
- Honda Motor (
- Ford Motor (
- Deutsche Bank (
- Vale SA (
- Bayer (
An important aspect of utilizing screens is to consider if any of the results that you are interested in align with your specific goals and make sense within the context of your portfolio. For example, the results of this screen are comprised mostly of foreign companies, which entail unique characteristics and risks. You’ll want to ensure that opportunities like these are appropriate for your goals and risk tolerance.
Looking for income
In addition to focusing on growth and/or value characteristics, income is another popular stock screening strategy. However, since early 2022 (when interest rates were much lower), stock yields have not compared as favorably to other higher-yielding investments.
But rates began to come down in 2024 and additional cuts are expected in 2025. That could further even out the field when comparing stock yields with other investments that generate income.
If you are interested in exploring stocks that feature relatively strong yields, here are the top 10 results for a screen looking for stocks with a high dividend yield (3.5% and greater), a dividend growth rate of at least 5.9% (5-year average), and a 90-day average daily volume of at least 610K, sorted by market cap, as of January 23, 2025:
- Abbvie (
- Chevron (
- Nestle SA (
- Pepsico (
- Bristol-Myers Squibb (
- United Parcel Service (
- Toronto-Dominion Bank (
- Bank of Montreal (
- Equinor (
- Canadian Natural Resources (
Evaluating if the results are in line with what you might expect is another screening tactic to utilize. If the output isn't generally what you expected and it doesn't align with your goals and risk tolerance, you may want to consider adjusting the filters or running a different screen.
Stock screen tips
Some screening criteria may be more relevant for certain sectors, industries, and companies. With experience, you can adjust filters to set up screens that produce the type of results you may be looking for. You can also look at preset expert screens if you’d like to see how filters can be set up.
Regardless of your screening approach, more research is needed to determine if any screen result is right for you. You should fully understand the risks involved, and each investing opportunity should be considered within the context of a well-diversified investment strategy that conforms to your specific time horizon, objectives, and risk parameters.