Screening Stocks with MACD, Positive P/E, and Earnings Growth
Summary
This stock screen selects shares with MACD above zero, a positive price-to-earnings ratio, and year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%. The document presents MACD as a trend filter, positive P/E as a basic valuation condition, and earnings growth as a profitability and growth criterion. It also gives indicator formulas, screening logic, and a ranking example based on net inflow ratio.
No backtest results or evidence of predictive performance are supplied. The article notes that earnings growth can be temporary and is only a rough measure of a company's condition; indicator effects may vary across stocks. It recommends supplementing the screen with broader fundamentals such as leverage and cash flow, and using diversification and risk controls. The ranking input and example code are presented as references, not as validation that the screen or ranking method produces reliable returns.
Key ideas
- The screen requires MACD above zero and a positive P/E ratio.
- It selects year-over-year parent-company net profit growth above 20% and up to 100%.
- A net inflow ratio is offered as a ranking measure for qualifying shares.
- The document provides formulas and sample code but no backtest evidence.
- Earnings growth may be temporary, so the screen can benefit from broader fundamental checks and risk controls.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.