No. of Recommendations: 8
The {TechGrowers} screen, posted by rdutt on 20200326, had a rough 2022, but has recovered recently. This is a very risky screen with a GSD over 50 and MDD -91%. With rumors of AI taking over software, this software focused screen might be an interesting one to watch. {TechGrowers} looks for:
Market Cap > $1B
Sales-Growth from Q5 to Q1 > 30%
In the Software IT industry
highest 26-week Price Change
One of the screens I used to compare P123 and GTR1 results is based on {TechGrowers}. {SbGro26} uses the same 4 steps modified slightly. Backtest results show good agreement between the screens, with the most significant difference maybe being the momentum measure used in the final sort.
The P123 and GTR1 versions of {SbGro26} use very different software industry criteria, and yet the results closely match. With a very high CorMER of 0.88, I don't feel inclined to delve into industry classification differences.
Total return by year:
year TechGrowers2i SbGro26
2017 49 56
2018 52 12
2019 55 35
2020 166 119
2021 20 -8
2022 -60 -42
2023 35 52
2024 53 33
2025 25 99
==== data ====
Data showing how close the screens are:
GTR1 counts passing each step from 20151127 to 20251128 are similar:
Stock count passing: TechGrowers SbGro26
liquidity 2065 1641
Sales-Growth 308 302
Software industry 45 50
The GTR1 backtest results are also similar:
Screen CAGR SAWR GSD MDD Sharpe Beta From To Depth
SbGro26 15 4 50 -87 0.49 1.5 19970902 20251128 10
TechGrowers2i 15 5 53 -91 0.49 1.5 19970902 20251128 10
TechGrowers2i 18 5 60 -90 0.55 1.5 19970902 20251128 5
SbGro26 28 12 41 -62 0.83 1.5 20151127 20251128 10
TechGrowers2i 26 9 51 -71 0.72 1.5 20151127 20251128 10
TechGrowers2i 30 8 60 -79 0.73 1.5 20151127 20251128 5
The 10-year results show good agreement between GTR1 and P123:
Screen GTR1 P123 diff CorMER sdCG nSD
SbGro screen225 30.3% 35.0% 4.7% 0.88 2.1% 2
The 5-year results show good agreement between GTR1 and P123:
Screen GTR1 P123 CorMER
SbGro26 15.6% 12.3% 0.91
TechGrowers2i 5.2%
The 5-year CorMER between {TechGrowers2i} and P123 {SbGro26} is 0.66.
The 5-year CorMER between {TechGrowers2i} and GTR1 {SbGro26} is 0.68.
=== links ===
Author: rdutt
Subject: New screen - Tech Growers
Date: 3/25/2020
https://www.shrewdm.com/MB?pid=66774607P123 {SbGro26}
Universe(ALLFUND)
!IsMLP & !IsOTC & !IsUnlisted
SalesA > 0
Close(300) > 0
Close(0) > 4
FRank("AvgDailyTot(63)", #Previous) >= 40
FRank("SalesA", #Previous) >= 10
FRank("MktCap", #Previous) >= 10
RBICS(55, 60) = 1
SalesPYQ > 0
SalesQ > 1.29 * SalesPYQ
FOrder("Ret%Chg(200,17)", #Previous) <= 10
GTR1 {SbGro26}
step7: [Fama/French 5 Industry Code] == 3
step9: [SG] > 1.29
step11: [Total Return % over 200 days; lag=17 days] Top 10
https://gtr1.net/2013/?~SbGro26:h19f0.4::SalesY1:g...Author: lohill
Subject: Tech_Growers Outliers?
Date: 10/22/24
Define {Tech_Growers}
Keep :[Price]>5
Keep :[Market Cap Q1]>1000
Keep :[Sales-Growth from Q5 to Q1] > 30
Keep :[Industry] =451020!451030!502030
Sort Descending [Price Change 26 week]
https://www.shrewdm.com/MB?pid=8928618https://gtr1.net/2013/?~TechGrowers2i_20200326_rdu...Article: Will Agentic AI Disrupt SaaS?, March 3, 2026
"I found the article interesting as it dives into a phenomena I have been observing and researching for the past two months: In spite of market wide fears that AI will replace software, some SaaS companies are seeing accelerating growth and decreasing margins over the past two quarters as they implement various forms of AI tools. My own research has led me to a firm conclusion that equating “AI disruption” with “AI will replace software” is incredibly short sighted and likely creating an investment opportunity by way of compressing valuations for high growth companies."
https://discussion.fool.com/t/article-will-agentic... 