Growth Inflection Screener

Overview in Plain English

This strategy screens the US mid-cap universe (market cap $5B–$50B) for companies showing fundamental inflection: positive revenue growth, four+ quarters of gross-margin data, and gross-margin acceleration in at least two of the last four quarters.

The remaining companies are scored using Growth (revenue, 40%) + Margin (gross-margin acceleration, 40%) + Safety (operating margin + current ratio, 20%) to produce a composite score from 0–100. The top 40 are output with red flag annotations.

Worked Example — Recalculating Current #1

Below we recalculate the three-factor scores step by step for the current #1 ranked stock. If the difference from the displayed score is within ±1.5, the pipeline is consistent; otherwise please report the anomaly.

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Factor Weights

Growth (Revenue YoY)

40%

Margin (GM Acceleration)

40%

Safety (Op Margin + Current Ratio)

20%

growthScore = normalize( revenue growth YoY ) // Higher = better
marginScore = normalize( avg GM Δ over last 4 quarters ) // Higher = accelerating
safetyScore = 0.5 × norm(opMargin) + 0.5 × norm(currentRatio) // Stability
composite = 0.40 × growthScore + 0.40 × marginScore + 0.20 × safetyScore
score = clamp(0, 100, round( 45 + 50 × (composite − min) / (max − min) ))

Hard Filters & Red Flag Rules

Hard Filters (fail = excluded)

Hard Flags (structural)

Soft Flags (relative to current basket)

Score Bands

Elite

80–100

Top-tier across all three factors in this snapshot.

Strong

70–79

Leading in all three or dominant in two.

Average

60–69

Passed screening but no standout advantage vs. basket.

Weak

0–59

Passed hard filters but ranked low; included for reference.