Screening Stocks by Turnover, Profit Growth, and Moving Average Trend

Summary

This document describes a stock screen combining turnover, parent-company net profit growth, and a moving-average trend filter. It selects shares with turnover between 3% and 12%, year-over-year net profit growth above 20% and at most 100%, and a 20-day moving average above the 120-day average. The longer average comparison is intended to add price-trend context to the profitability and trading-activity criteria.

The document supplies example screening formulas and Python logic, but no backtest, performance results, or evidence that the screen predicts returns. It notes that the rules omit other financial and industry considerations, and that a moving-average signal can be temporary. Suggested refinements include adding valuation measures and testing alternative average periods. The sample Python implementation also uses a fixed reporting period and data-source-specific fields, so it may require adaptation before use.

Key ideas

• The screen requires turnover between 3% and 12%.
• It filters for year-over-year parent-company net profit growth above 20% and no higher than 100%.
• It requires the 20-day moving average to exceed the 120-day moving average.
• The document provides implementation examples but no evidence of historical or live performance.
• It identifies incomplete fundamental coverage and temporary technical signals as limitations.

Tags

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