Screening Stocks by Price Range, Persistent ROE, and Revenue Growth

Summary

This Chinese-language post proposes an equity screen combining price movement, profitability, and revenue growth. It selects stocks with a high-low range exceeding the 14-period ATR, return on equity above 15% for five consecutive years, and revenue growth above a stated threshold between 2018 and 2021. It then suggests ranking by trading amount as a measure of capital strength. The post also gives formula and Python examples for implementing versions of the screen, though their calculations do not fully match the written criteria: for example, the code uses a different ROE threshold representation and computes a multi-year revenue percentage change.

The author cautions that revenue growth alone misses other financial and business conditions, past ROE does not ensure durable future results, and a fixed growth cutoff may exclude firms. Suggested refinements include adding broader company fundamentals, examining revenue trends, and using relative growth measures. No backtest evidence or risk-adjusted performance is reported, so the screen should be treated as a proposed selection recipe rather than a validated strategy.

Key ideas

• The screen combines price range relative to ATR, sustained high ROE, and multi-year revenue growth.
• It proposes ranking qualifying companies by trading amount.
• The implementation examples diverge in places from the screen described in prose.
• The post warns that historical profitability and revenue growth do not ensure future performance.

Tags

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