Screening Stocks by Price Range and Sustained Return on Equity

Summary

The post proposes a stock screen combining a daily high-low range threshold with return on equity above 15% for five consecutive years, alongside a 2021 performance condition. It frames the range as a way to select more volatile stocks and sustained ROE as a profitability filter. It also suggests adding valuation measures such as price-to-earnings and price-to-book ratios, plus further price and volume indicators.

The post gives illustrative formula and Python-like references, but several conditions are placeholders, including what counts as strong recent performance and reasonable valuation. Its sample code also mixes stock-screening criteria with futures data structures, so it is not a complete, directly usable implementation. The author notes that relying on a single year's performance may not predict future returns and recommends broader history and additional filters. No backtest results or evidence of predictive value are reported.

Key ideas

• The proposed screen combines a price-range condition with five years of return on equity above 15%.
• The post also includes a condition tied to performance in 2021.
• It suggests adding valuation measures and price-volume indicators to refine selection.
• Key conditions are left undefined, and the code examples are illustrative rather than complete.
• No backtest or evidence of future performance is reported.

Tags

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