Screening Stocks for Revenue Growth, Positive Earnings, and Daily Range

Summary

The document proposes a stock screen combining daily price range, positive price-to-earnings ratio, and revenue growth. It selects stocks whose high-to-low range exceeds one percent of the previous close, whose P/E is positive, and whose revenue in 2021 is more than 1.1 times revenue in 2018. The stated rationale is to combine trading activity, profitability, and business growth.

It cautions that revenue growth alone does not establish investment value and that the screen does not comprehensively assess valuation or company fundamentals. Suggested refinements include adding valuation and profit-growth measures and technical indicators. The article offers formula and Python examples, but the Python example omits the P/E test and appears to calculate revenue growth from a data series whose reporting frequency and period alignment are unclear. It presents no backtest, performance evidence, or validation of the thresholds.

Key ideas

• The screen combines a daily range threshold, positive P/E, and revenue growth over three years.
• The article interprets a larger daily range as a sign of price activity.
• Revenue growth and positive earnings do not by themselves establish that a stock is attractively valued.
• The example implementation omits the P/E calculation and gives no performance test.

Tags

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