Screening Stocks by Turnover, Stochastic K, and Profit Growth

Summary

This stock screen combines a turnover range of 3% to 12%, a K value below 20, and year-over-year net profit growth above 20% and no more than 100%. The article frames the turnover condition as a liquidity filter, the K threshold as a technical selection rule, and profit growth as a measure of company performance. Its sample code also adds industry, positive price-to-book, and positive price-to-earnings filters, illustrating that the implementation expands on the headline criteria.

The post warns that rapid profit growth can occur at companies with unstable operations and does not by itself prove durable growth. It recommends considering measures such as leverage and gross margin, as well as future earnings expectations. No backtest, portfolio construction rules, or performance evidence are supplied, and the text does not clearly define the K indicator calculation. The proposed screen is a starting point for research; its filters and additional code conditions require precise definitions and empirical validation before investment use.

Key ideas

• The stated screen combines 3% to 12% turnover, a K value below 20, and bounded year-over-year net profit growth.
• The sample code adds industry and valuation conditions beyond the headline screen.
• Fast profit growth may reflect unstable company circumstances and is not sufficient evidence of durable growth.
• The article proposes adding measures such as leverage and gross margin but reports no tested results.

Tags

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