Screening 2021 Listings by Turnover and Positive P/E

Summary

This stock screen combines three filters: turnover between 3% and 12%, a 2021 listing year, and a positive price-to-earnings ratio. The article presents the idea as a way to find recently listed companies with moderate trading activity and positive earnings valuation, then discusses possible extensions such as adding growth measures or technical indicators.

It provides no backtest, sample portfolio, or performance evidence. Its rationale that newer companies may continue growing and that positive P/E implies reasonable valuation is not established by analysis. The accompanying code reference also uses additional IPO price and issuance size conditions that differ from the stated final screen, and does not demonstrate a complete implementation of every stated filter. Results may vary with data definitions and timing; a single valuation measure does not assess business quality, growth prospects, or unexpected market events.

Key ideas

• The stated screen requires turnover between 3% and 12%, a 2021 listing year, and positive P/E.
• The article suggests adding financial measures such as PEG and technical indicators for broader evaluation.
• It warns that P/E can vary in usefulness across periods and does not capture growth or future earnings.
• No empirical performance evidence is supplied, and the code example includes conditions beyond the stated screen.

Tags

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