Combining Revenue Growth and Fund-Flow Strength in a Stock Screen
Summary
The article proposes ranking stocks by fund-strength measures and filtering for companies whose 2021 revenue was more than 1.1 times their 2018 revenue. It presents fund inflows as a possible indicator of market interest and the revenue comparison as a simple way to identify companies with higher reported sales over the period. Suggested refinements include valuation measures such as price-to-earnings and price-to-book ratios, with adjustments for market conditions.
The post identifies risks in relying on fund flows or revenue growth alone: flows can reverse, and historical sales growth may slow or fail to translate into shareholder returns. Its code excerpt is incomplete and does not clearly implement the stated comparison of 2021 revenue with 2018 revenue; the fund-strength field is also not defined. No backtest, sample details, or investment results are reported. The screen offers a basic idea for combining a growth filter with a flow ranking, but its thresholds and signals require precise definitions and empirical validation.
Key ideas
- The proposed filter requires 2021 revenue to exceed 1.1 times 2018 revenue and ranks stocks by fund strength.
- The article treats revenue growth and fund flows as possible signals, not guarantees of future returns.
- It suggests adding valuation measures and accounting for changing market conditions.
- The code is incomplete, the flow measure is undefined, and the article supplies no validation results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.