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Finding #1 Stocks: Screening, Backtesting and Time-Proven Strategies by Kevin Matras

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Chapter 8

Winning Aggressive Growth Strategies

Now let’s take a look at some winning Aggressive Growth style screens and trading strategies. As I mentioned in the last chapter, even if you’ve identified yourself as something other than an Aggressive Growth trader, be sure to still check out the screens in this style. As you likely saw in the Momentum section, there were a lot of interesting ideas, many of which can be incorporated into any one of the other styles. And the same will be true for this style as well.

As the title suggests, we’ll be looking for stocks with aggressive earnings growth or sales growth. And we’ll be demonstrating this through four unique Aggressive Growth strategies. There’s also a surprising performance study on market-caps that you’ll want to see regardless of what style of trader you are. But first, let’s take a look at some growth strategies.

Small-Cap Growth

When most people think of Aggressive Growth strategies, one of the first things that come to mind is small-cap stocks. Indeed, when I’m searching for Aggressive Growth stocks, I’ll usually get plenty of small-cap stocks coming through regardless of whether I’m specifically looking for them or not.

So I set out to create an Aggressive Growth screen that did just that. And the results were amazing. So let’s take a closer look at what went into it.

Parameters

The screen starts off with:

  • Market Value <= $1 Billion
  • Zacks Rank = 1
  • Price >= $1
  • Average Dollar Trading Volume >= $500,000
  • Estimated One ...

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