Equity Screening with Price Range, Institutional Activity, and Sustained Profitability

Summary

This document describes an annual equity screen combining a price-range condition, a measure labeled institutional accumulation, and a requirement for sustained return on equity above a stated threshold. It further limits the universe to stocks in the upper half by total market capitalization. Formula and Python examples are offered to illustrate the proposed conditions, though the mapping from the institutional activity measure to the sample data and the implementation of the multi-year profitability test are not clearly established.

The rationale is that price movement may identify active stocks, institutional activity may suggest buying interest, and sustained profitability may indicate stronger business performance. The document provides no backtest, stock examples, or return evidence. It notes that the screen omits other financial risks, competition, valuation, and changing market conditions, and suggests adding valuation measures and comparing the results with other models. It should therefore be read as a screening concept rather than evidence of investment performance.

Key ideas

• The annual screen combines a price-range condition, institutional activity, and sustained return on equity above the stated threshold.
• It retains stocks in the upper half of the market-capitalization ranking.
• The text interprets institutional activity and profitability as potential signs of buying interest and business quality.
• The example code does not clearly establish that all screening conditions are implemented consistently.
• The document reports no performance evidence and identifies financial, competitive, valuation, and market risks.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.