Stock Screening with Positive MACD, Positive P/E, and Revenue Growth

Summary

This note describes an equity screen combining a positive MACD reading, positive price-to-earnings ratio, and revenue growth: 2021 revenue must exceed 2018 revenue by more than the stated threshold. It gives the MACD calculation using exponential moving averages and presents indicator and screening examples. A separate ranking example sorts candidates by a net-inflow measure. The screen is intended to combine a trend signal with basic valuation and historical sales growth.

The article warns that short-term technical signals and recent revenue figures can overlook long-run trends, business quality, and future profitability. It offers no backtest, performance evidence, or detailed implementation validation, and its examples do not establish that the screen predicts returns. The author suggests adding broader fundamental and industry measures and explicit risk controls, such as stop losses and position limits. Historical revenue growth and a positive P/E alone do not establish investment value or financial strength.

Key ideas

• The screen requires MACD above zero, positive P/E, and revenue growth from 2018 to 2021 above the stated threshold.
• MACD is calculated from short and long exponential moving averages, with a further average used as the signal line.
• The example ranks qualifying stocks by a net-inflow measure.
• The article cautions that recent sales growth and technical signals may miss long-term prospects and profitability risks.
• It recommends broader fundamental analysis and explicit risk controls.

Tags

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