Screening Stocks with Rising 30-Day Averages and Earnings Growth

Summary

This stock selection rule combines a positive MACD reading, a rising 30-day average, and year-over-year net profit growth above 20% and no more than 100%. The accompanying discussion presents MACD as a shorter-term trend filter, the average as a broader trend check, and earnings growth as a fundamental screen. It suggests adding industry, market capitalization, and sentiment information. A formula and Python example are included, though they express parts of the rule differently: the formula compares the average and MACD with prior values, while the prose specifies MACD above zero and an upward-sloping average.

The article provides no backtest or evidence that the filters predict returns. It also notes risks from liquidity, market sentiment, sector concentration, and the choice of screening horizon. The code adds a market-capitalization range and checks price relative to the average, details not stated in the core rule. Earnings data timing and point-in-time availability would need careful handling to avoid look-ahead bias. The strategy remains a screening hypothesis requiring consistent definitions and testing.

Key ideas

• The stated screen combines MACD above zero, net profit growth above 20% and at most 100%, and a rising 30-day average.
• The article uses short- and longer-term trend filters alongside an earnings-growth condition.
• It recommends considering industry, circulating market capitalization, and market sentiment.
• The formula and Python example do not express every condition consistently with the prose.
• No backtest evidence is supplied, and fundamental data timing requires care.

Tags

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