Screening Stocks by Price Range, Five-Year ROE, and Morning Gain

Summary

This stock-screening idea combines a minimum intraday high-to-low price range with consistently high return on equity across five years and a limit on the stock’s gain at 9:25. The stated rationale is to seek profitable companies showing some price movement while avoiding stocks that have already risen sharply that morning. The document includes example indicator and Python-style screening logic, though parts are placeholders and the supplied code has limitations that would need review before use.

The author cautions that the filter may exclude strong growth companies with recent price gains or select lagging industries. Suggested refinements include considering valuation measures such as market capitalization, price-to-earnings, and price-to-book, as well as industry classifications and additional financial measures. No backtest results or evidence of profitability are presented, so the screen is an illustrative selection concept rather than a validated strategy.

Key ideas

• The screen combines a minimum high-to-low price range with high ROE across five years and a cap on the morning gain.
• The author presents the gain limit as a way to reduce exposure to short-term price surges.
• The filter may miss strong companies that have already appreciated or favor lagging sectors.
• Valuation measures and industry-aware financial analysis are suggested as possible refinements.
• The document provides example screening logic but no performance results.

Tags

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