Screening Small-Cap Profitable Stocks by Amplitude and Positive P/E

Summary

This A-share screen seeks companies with market capitalization below 10 billion yuan, positive P/E, no reported losses, and daily price amplitude above 1%. The article presents amplitude as a sign of trading activity, positive P/E and profitability as basic financial filters, and the small-cap limit as a way to focus on smaller firms. Its suggested refinement adds earnings growth and other financial or technical measures.

The document gives indicator formulas and a Python example using historical stock and financial data. It reports no backtest, comparison, or realized performance, so it provides a proposed selection method rather than evidence that the filters predict returns. The article notes that smaller stocks may have weaker liquidity, high-amplitude stocks can be volatile, and the combined criteria may leave a narrow universe. Its narrative and code differ in places, including the specific earnings-growth calculation, so the implementation details need validation before use.

Key ideas

• The screen combines market capitalization below 10 billion yuan, positive P/E, no losses, and amplitude above 1%.\nThe article proposes amplitude as an activity filter and profitability measures as basic financial screens.\nIt suggests adding earnings growth and further financial or technical measures.\nThe article provides formulas and sample code but no evidence from backtests or realized trading.\nIt identifies liquidity, volatility, and a narrow candidate pool as risks.

Tags

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