Screening Metaverse Stocks for Positive Returns and Sustained ROE

Summary

This stock screen combines three filters: membership in the metaverse industry, a positive one-day price return, and return on equity above 15% in each of the previous five years. The document explains that sustained ROE is intended to identify firms with a record of profitability, and gives examples of expressing the conditions in a screening formula and a Python workflow. The Python example also sketches how to check recent prices and retrieve company names and quotes.

The main caveat is that a five-year profitability hurdle may exclude younger or developing businesses, and could yield few candidates in industries where ROE is generally lower. The author suggests supplementing the screen with financial strength, growth measures, or technical indicators, and adjusting the ROE threshold for market conditions. No constituents, backtest, return series, or evidence of predictive performance are provided, so the screen is a selection recipe rather than a validated strategy. The code examples also differ in how they check the five-year ROE condition, so users should verify the implementation against their data source before relying on it.

Key ideas

• The screen selects metaverse industry stocks with a positive recent return and five consecutive years of ROE above 15%.
• The ROE filter is intended to favor companies with a sustained record of profitability.
• A strict historical profitability threshold may exclude newer companies or produce few candidates in low-ROE industries.
• The document proposes adding financial strength, growth, or technical measures and adjusting the threshold to market conditions.
• It provides no backtest or evidence that the screen predicts future performance.

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