Screening Method for Super Growth Stocks

Investment is a marathon race. In the A-share market, many people achieve triple returns in one year, but very few can double their money in three years. The key to long-term survival is consistent profitability. Super growth stocks are the only method endorsed by trend traders worldwide for sustainable returns. This article by the technical editor of Winner Wealth Network synthesizes wisdom from predecessors and validates this screening method with A-share listed companies, aiming to help investors outperform inflation and market averages over the long term. Through numerous case studies and charts, we illustrate the essential elements of super growth stocks.

In his book Trade Like a Stock Market Wizard, American investment guru Mark Minervini introduced the concept of "earnings gap," which reflects a company's strengthening and sustained profitability. When the market reacts to such significant positive earnings reports, the stock price often gaps up to initiate the first wave of rally. As more investors recognize the company's potential, continuous buying may drive the price higher for an extended period.

The screening method for super growth stocks is rooted in this philosophy, with the following key criteria:

First, listed companies release operational reports four times annually. Stock prices generally follow valuation principles, so improved profitability typically leads to strong price performance. An upward gap on the earnings announcement date is the primary selection factor.

Second, revenue and profit growth must demonstrate sustainability. Companies relying on one-time events—such as asset sales, government subsidies, or investment gains—to meet the first criterion should be excluded. Focus instead on firms with year-over-year growth supported by industry expansion and rising societal demand.

Third, institutional investors should appear among the top ten tradable shareholders, holding a significant stake.

After understanding these elements, the technical editor of Winner Wealth Network will demonstrate the method's practicality through case studies. We screened A-share companies listed in 2017 with unfilled price gaps, then backtested their Q1, Q2, and Q3 earnings announcement dates to filter out non-compliant firms. The remaining companies were manually verified for further analysis.