Selecting Stocks with Price Amplitude, Trading Activity, and Earnings Growth

Summary

This stock screen combines three conditions: prior-day price amplitude above 1%, appearance on the previous day’s major trading activity list, and year-over-year growth in net profit attributable to parent-company shareholders above 20% and no greater than 100%. The article explains these as filters for price movement, unusual capital activity, and company earnings growth. It includes example formulas and Python-oriented steps for intersecting the qualifying stock lists.

The author warns that broad market reversals and company-specific financial or business risks can undermine the screen. The method does not assess business quality in depth, and the article suggests adding measures such as valuation or dividend yield. It provides no backtest results or evidence that the selection rules deliver stable returns, so the claimed aim should not be treated as demonstrated performance.

Key ideas

• The screen requires prior-day amplitude above 1%, a previous-day appearance on the major trading activity list, and earnings growth within the stated range.
• The three filters represent price movement, trading activity, and profitability growth.
• The examples select stocks by intersecting the sets that pass each condition.
• Market reversals and company-level risks may invalidate the screen.
• The article gives no performance evidence and suggests adding further fundamental measures.

Tags

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