Screening Stocks for Positive MACD and Earnings Growth

Summary

This proposed stock screen combines MACD above its zero line, year-over-year net profit growth above 20% and at most 100%, and revenue in 2021 more than 1.1 times its 2018 level. The discussion interprets these conditions as a mix of price trend, recent earnings growth, and longer-period revenue expansion. It also suggests considering profitability measures such as margins and doing broader fundamental analysis.

The document identifies several limitations: it omits valuation and other financial measures, and its revenue comparison covers a fixed historical period. It gives no backtest, performance statistics, or evidence that the filters identify attractive future returns. The code example also appears inconsistent with the prose: its MACD condition checks a rising sequence rather than clearly testing that MACD is above zero, and its revenue calculation may not correspond to the stated multi-year revenue ratio. Those differences make the intended rules and implementation worth reconciling before use.

Key ideas

• The proposed screen combines a positive MACD condition with bounded net profit growth and historical revenue expansion.
• The discussion recommends adding valuation, profitability, and other financial checks.
• No backtest or performance evidence is reported.
• The example code's MACD and revenue calculations do not clearly implement the written screening rules.

Tags

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