Screening Stocks by Five-Year ROE, Price, and Daily Range

Summary

This stock screen selects companies with a daily high-to-low range of at least one price unit, return on equity above 15% in each of five years, and a closing price below 12. The note presents the range threshold as a way to include more volatile shares, the ROE history as a profitability filter, and the price condition as a low-price preference. It includes examples of how these conditions can be expressed in a stock screener and applied to historical data.

The author cautions that a low share price alone does not imply value, and that simple filters can miss company fundamentals, industry conditions, and broader market context. Suggested refinements include valuation, financial, industry, and technical analysis, but no evidence is provided that these changes improve results. The document offers no backtest, performance statistics, or validation of its screening thresholds. Its criteria are therefore a starting point for candidate selection rather than a demonstrated investment strategy.

Key ideas

• The screen combines a daily high-to-low range threshold with a five-year profitability condition and a maximum closing price.
• The profitability filter requires ROE to exceed 15% in each of the five years considered.
• A low nominal share price does not by itself establish that a stock is undervalued.
• The note recommends adding valuation, financial, industry, and technical analysis to address risks omitted by the basic filters.
• No backtest or performance evidence is provided for the screen.

Tags

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